Patna High Court

Ashok Sah @ Ashok Kumar SahversusThe State of Bihar

Decided: 31 March 2026
Disposal: ALLOWED
Bench: A ABHISHEK REDDY

Holding

The Court set aside the orders dated 23‑09‑2022, 15‑07‑2016 and 17‑03‑2016 and directed the restoration of the petitioner’s PDS licence.

Summary

The petitioner, Ashok Sah, challenged three orders that cancelled his PDS licence – one by the Divisional Commissioner, one by the Collector, and one by the Sub‑Divisional Officer – alleging that the authorities acted arbitrarily, ignored his show‑cause response, and violated natural‑justice requirements. He argued that a one‑day shop closure, without prior permission, could not justify licence cancellation and that he had applied for permission to shift his shop, which was not denied. The State contended that the petitioner repeatedly closed his shop and stored grains elsewhere in contravention of Rule 17 of the Bihar Targeted PDS (Control) Order, justifying the cancellation. The Court relied on a prior decision (CWJC No.2387 of 2023) which held that licence cancellation requires a fair hearing and compliance with the procedural rules. Finding the impugned orders to be illegal, the Court set aside all three orders and directed the authorities to restore the petitioner’s PDS licence within three weeks.

Issues considered

Whether the cancellation of the PDS licence on the ground of a one‑day shop closure without hearing violates principles of natural justice.
Whether the authorities complied with Rule 17 and Rule 27 of the Bihar Targeted Public Distribution System (Control) Order while cancelling the licence.
Whether the orders dated 23‑09‑2022, 15‑07‑2016 and 17‑03‑2016 are liable to be set aside.
Whether the petitioner is entitled to restoration of his PDS licence.

Subjects

PDS licence
cancellation
natural justice
Rule 17
Rule 27
Bihar Targeted Public Distribution System (Control) Order
writ petition
quashing order
fundamental rights

Judgment

IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4151 of 2023
======================================================
Ashok Sah @ Ashok Kumar Sah, Son of Chhedi Sah, Resident of Vilalge-
Mishra Bandhaura, P.O. and P.S. and Block-Vijaipur, Sub-Division-Hathua,
District-Gopalganj.

... ... Petitioner/s
Versus
1. The State of Bihar through the Principal Secretary, Department of Food and
Consumer Protection, Govt. of Bihar, Patna.
2. The Principal Secretary, Department of Food and Consumer Protection,
Govt. of Bihar, Patna.
3. The Commissioner, Saran Division, District-Saran, at-Chapra
4. The Collector-cum-District Magistrate, Gopalganj, District-Gopalganj.
5. The District Supply Officer, Gopalganj, District-Gopalganj.
6. The Sub-Divisional Officer, Hathua, District-Gopalganj.
7. The Block Supply Officer, Vijaipur, District-Gopalganj.

... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Sanjay Kumar Pandey No.5, Advocate.
For the Respondent/s : Mr. Arvind Ujjwal (SC 4).
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER

13 31-03-2026 Heard the learned counsel for the parties.

2. The present Writ Petition has been filed for the

following reliefs:-

“For the issuance of an
appropriate writ/direction/order for:-
A. Quashing the order dated
23.09.2022 passed in Supply Revision Case
No. 199/2016 passed by the learned Court of
the Divisional Commissioner, Saran
Division, Chapra. (Annexure-8, Page-34).
Patna High Court CWJC No.4151 of 2023(13) dt.31-03-2026
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B. And further, for the quashing of
the order dated 15.07.2016 passed in Supply
Appeal Case No. 12/2016 passed by the
court of the learned Collector Gopalganj
(Annexure 6 Page 29).
C. And further for the quashing of
the Memo No. 43/MU, dated 17.03.2016
issued by the Sub-Divisional Officer, Hathua
by which the P.D.S license of the Petitioner
was cancelled.
D. And further for a direction to
the Respondent Authority to restore the
license of the Petitioner and further to
restore the Supply of food grains to the
Petitioner; On amongst others the following
grounds :-
i. For that the learned Sub-
Divisional Officer, Hathua has cancelled the
license of the Petitioner without appreciating
the show cause dated 15.03.2016 (Annexure
4, Page-21) submitting by the Petitioner.
ii. For that the greatest illegality
committed by the Original Authority the Sub-
Divisional Officer, Hathua is that the Sub-
Divisional Officer, Hathua has observed that
the Petitioner has created the evidences, just
to frustrate the show cause notice, issued by
the authority.
iii. For that the Original Authority
has not explained the facts and
circumstances-relying upon which the
Original Authority has come to the
conclusion that the Petitioner has created
the evidences, just to frustrate the show
cause issued by the authority.
iv. For that the Original Authority
learned Sub-Divisional Officer, Hathua has
totally ignored the calculations and
evidences submitted by the Petitioner.
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v. For that the Original Authority
has totally over looked the compelling
circumstance, in which the wife of the
petitioner was diagnosed a cancer patient
and ultimately she died on 01.05.2018.
vi. For that the Appellate
Authority learned Collector Gopalganj has
discussed the allegations made upon the
Petitioner and thereafter, all of sudden, came
to the conclusion that the order of the
Original Authority is good in law.
vii. For that the Revisional
Authority has also concurred the finding of
the learned Collector, Gopalganj and has
dismissed the Supply Revision Case No.
199/2016.
viii. For that all the three orders
passed by the authorities are bad in law due
to the non consideration of the evidences,
adduced the Petitioner.
ix. For that, all the orders
impugned, suffer from the defect of non
application of mind and for the defect of
declaring the evidences adduced by the
Petitioner, as a fabricated evidence, without
any bases behind this finding.
x. For that due to arbitrary orders
passed by the respondent authorities the
petitioner has suffered an irreparable injury.
xi. For that due to the arbitrary
order passed by the respondent authorities
the fundamental right of the petitioner as
ensuing in the constitution of India has been
violated.”
3. Learned counsel appearing on behalf of the

petitioner submits that the shop of the petitioner was inspected

by the authority on 25.02.2016 on which day the petitioner due
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to his illness had closed the shop. The authority on the ground

that the shop of the petitioner is closed without taking necessary

permission and also finding that the storage of the food-grains

was situated at another place without taking permission from the

competent authority has cancelled the PDS licence issued in

favour of the petitioner. Learned counsel submits that the

closure of the shop for one day cannot be a ground for

cancelling the PDS license of the petitioner and has relied on the

judgment passed in CWJC No. 2387 of 2023 dated 10.04.2023.

Learned counsel further submits that though the petitioner has

made an application through a public representative vide Letter

No. PA/CH/4308 dated 12.06.2015 (Annexure-P/2), the

authority have till date not passed any order and the same has

not been denied in the counter-affidavit filed by the

respondents-authorities. Learned counsel has, therefore, prayed

this Hon’ble Court to set aside the impugned orders dated

23.09.2022 passed by the Divisional Commissioner, Saran

Division, Saran at Chapra, the order dated 15.07.2016 passed by

the Collector, Gopalganj and the order dated 17.03.2016 passed

by the sub-Divisional Officer, Hathua and allow the present writ

petition and direct the authorities to restore the license of the

petitioner.
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4. Per contra, the learned counsel appearing on behalf

of the Respondent-State has vehemently opposed the very

maintainability of the present writ petition. Learned counsel has

stated that the petitioner without taking any prior permission

from the competent authority has closed the shop on the date of

inspection and the petitioner is in the habit of closing the shop.

Further, the petitioner in contravention of Rule 17 the Bihar

Targeted Public Distribution System (Control) Order has stored

the food-grains at another place and no prior permission has

been sought by the petitioner. The authority was well within its

rights in cancelling the PDS license of the petitioner following

the due procedure established under the law. Learned counsel

has, therefore, prayed this Hon’ble Court to dismiss the present

writ petition.

5. A Coordinate Bench of this Hon’ble Court in

CWJC No. 2387 of 2023 dated 10.04.2023 has held as under:-

“8. In the opinion of this
Court, merely on account of closure of a
shop on a particular date, cannot invite
cancellation of licence. It is to be noticed
that granting of a P.D.S. licence could
not be treated in the ordinary sense to be
similar to any other licence. Once a
licence is granted, it is a means of
livelihood not only for the petitioner but
his entire family. In such circumstances,
due caution and care should be taken by
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the authorities before cancelling a
licence and apart from giving fair
opportunity of hearing to the concerned
licence holder in term of Rule 27, it is
also necessary that a copy of the enquiry
report should be provided and, if the
same is contested, then an opportunity to
cross-examine the complainant should
also be provided by the concerned
authority to the allotee/licencee.”
6. Further, it is to be seen that the petitioner has made

an application for shifting of the shop through a public

representative vide Letter No. PA/CH/4308 dated 12.06.2015

(Annexure-P/2) and in the counter-affidavit filed by the

respondent-authorities except stating that the petitioner has not

taken any permission the factum of the petitioner having

submitted an application seeking permission for shifting of the

shop has not been denied.

7. Rule 17 of the Bihar Targeted Public Distribution

System (Control) Order reads as under:-

“17. Change in a fair price shop’s business place:-

(i) If the licensee wants change in storage
place of essential commodities or business
place as described in the license, the
licensee shall submit to the licensing
authority an written application for this
purpose stating reasons and identification
details of the proposed place of change.
(ii) The licensing authority shall take a
decision of accepting or rejecting the
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application within a fortnight from the date
of its receipt. If the petition is accepted, the
licensing authority shall order for necessary
changes in the license and in the office’s
license register.
(iii) If no decision is taken within a fortnight
by the licensing authority, the licensee may
store or begin business of the essential
commodities at the proposed place for
change with the prior permission of the
District Officer.
(iv) The licensee may shift the storage or
business place of the essential commodities
without permission of the licensing
authority at a place not described in the
license in emergency situations (such as
earthquake, flood, or other reasons like
sudden damage in the building, etc), and
shall give its written information to the
licensing authority within 72 hours, and in
accordance with sub clauses 1, 2, and 3 the
proposed change will be effected.”
8. Having regard to the same, the impugned order

dated 23.09.2022 passed by the Divisional Commissioner, Saran

Division, Saran at Chapra, the order dated 15.07.2016 passed by

the Collector, Gopalganj and the order dated 17.03.2016 passed

by the sub-Divisional Officer, Hathua are all set aside. The

authority is directed to restore the PDS license of the petitioner

as expeditiously as possible preferably within a period of three

weeks from the date of the receipt of the copy of this order.

9. With the above directions, the present writ petition
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stands allowed to the extent indicated.

(A. Abhishek Reddy, J)
shakir/-

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