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Patna High Court

Nisar Ahmad @ Md. Nisar AhmadversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The cancellation orders are set aside and the matter remanded for issuance of a fresh show‑cause notice in compliance with Rule 27(ii) and furnishing the enquiry report.

Summary

The petitioner, Nisar Ahmad, challenged the cancellation of his PDS licence (No. 82/2016) on the ground that the show‑cause notice issued by the Sub‑Divisional Officer did not attach the enquiry report nor mention a proposal for cancellation, violating Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016 and the principles of natural justice. He argued that the appellate authorities mechanically dismissed his appeal without addressing these procedural defects. The respondents contended that the writ petition was not maintainable because a revision before the Commissioner was an alternative remedy. The High Court, relying on its earlier judgments (CWJC No.253 of 2014 and CWJC No.21202 of 2021), held that a notice lacking the enquiry report and a clear cancellation proposal is invalid. Consequently, the Court set aside the orders dated 19‑09‑2022, 22‑02‑2022, and 15‑10‑2020 and remanded the matter to the Sub‑Divisional Officer to issue a fresh, compliant show‑cause notice. The petition was allowed in the extent indicated.

Issues considered

  • The show‑cause notice complied with Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016?
  • Whether the omission of the enquiry report and a cancellation proposal violates natural justice?
  • Whether the writ petition is maintainable despite the availability of a revision remedy?

Subjects

  • PDS licence
  • show‑cause notice
  • natural justice
  • Bihar Targeted Public Distribution System
  • Rule 27(ii)
  • licence cancellation
  • writ petition
  • administrative law

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 Civil Writ Jurisdiction Case No.5429 of 2025
                 ======================================================
                 Nisar Ahmad @ Md. Nisar Ahmad, Son of Late Jawed @ Zawwad, Resident
                 of village- Baluganj, Kumharwa, Jhawwari, P.S.- Jalalgarh, District- Purnea.

                                                                            ... ... Petitioner/s
                                                   Versus
           1.    The State of Bihar through the Principle Secretary, Department of Food and
                 Civil Supplies, Government of Bihar, Patna.
           2.    The Divisional Commissioner, Purnea, District- Purnea.
           3.    The District Magistrate, Purnea, District- Purnea.
           4.    The Sub-Divisional Officer, Baisi, District- Purnea.
           5.    The Supply Inspector, Under Block- Amour, District- Purnea.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s    :      Mr. N. K. Agrawal, Senior Advocate with
                                                Mr. Kumar Rajdeep, Advocate.
                                                Mr. Nadimul Hasan, Advocate.
                 For the Respondent/s    :      Mr. Kumari A. GP 3 with
                                                Mr. Rajesh Kumar, AC to GP 3.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                    ORAL ORDER

6   10-02-2026                   Heard learned counsel for the parties.

                                 2. The present Writ Petition has been filed for the

                   following reliefs:-

                                                        “(i)    For      issuance     of
                                              appropriate writ or writs, order or orders
                                              and direction to the concerned
                                              respondent authority to re-call the
                                              cancellation order of PDS License of the
                                              petitioner as such Licence No. 82/2016
                                              and also quashing the order dated
                                              19.09.2022 (as contained in Annexure-3)
                                              passed by the learned Divisional
                                              Commissioner in supply Revision No. 97
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                                      of 2022 and also quashing the order
                                      dated 22.02.2022 in supply Appeal No.
                                      276 of 2021 (as contained in Annexure-2)
                                      passed by the Respondent No. 3 by which
                                      the District Collector Purnea District
                                      purnea has not applied his judicial mind
                                      and not consider the facts of the case as
                                      well as Law and on wrong assumption of
                                      facts and law and relied upon the order
                                      dated 15.10.2020 in E.C. Case No.
                                      05/2020 passed by the SDO Baisi
                                      District-Purnea, the Respondent No. 4 by
                                      which who has cancelled the PDS
                                      Licnece No. 82/16 of the petitioner only
                                      on the basis of false and fabricated
                                      report submitted by the supply inspector
                                      Block Amour District-Purnea. That the
                                      Respondents authorities have not
                                      consider the material facts of the case
                                      and not applied their independent
                                      judicial Mind before passing the said
                                      impugned orders which are fit to be set
                                      aside in the eye of law.
                                                 (ii)    For    issuance     of
                                      appropriate writ, order or direction to
                                      the concerned respondents to follow the
                                      different circular issued by the
                                      Government State of Bihar for the
                                      purpose of re-appointment or re-call
                                      licence of a person for PDS Dealer after
                                      some penalty.”

                      3. Learned counsel appearing on behalf of the

          petitioner has stated that the Sub-Divisional Officer while

          issuing the show cause notice to the petitioner has not enclosed

          the enquiry report and there is no proposal for cancellation of
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          the license in the show-cause notice.

                      4. Learned counsel has stated that non-mentioning of

          the proposal for cancelling his license is contrary to the

          provisions of order 27(ii) of the Bihar Targeted Public

          Distribution System (Control) Order, 2016 (hereinafter referred

          to as ‘the Order, 2016’).

                      5. Further learned counsel has relied on the judgment

          of this Hon'ble Court in CWJC No.253 of 2014 dated

          11.03.2015 wherein this Hon'ble Court has held that the non-

          supply of the enquiry report along with the show-cause is bad

          and against the principle of natural justice and equity.

                      6. Learned counsel has further stated that petitioner

          has taken the above ground in the appeal, but the appellate

          authority has not dealt with the above ground and dismissed the

          appeal in a mechanical manner.

                      7. Learned counsel for the petitioner has also relied on

          the judgment of the Full Court passed in CWJC No.21202 of

          2021 and analogous cases dated 26.09.2023 to buttress his

          contention that non-mentioning of the proposed action in the

          show-cause notice is bad in law and contrary to Rule 27(ii) of

          the Control Order, 2016.

                      8. Learned counsel has stated in view of the above
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          mentioned provisions of law and judgments relied by the

          petitioner, the impugned order may be set aside and matter

          remanded back to the authorities concerned for issuing a fresh

          show-cause notice in terms of order 27(ii) of the Control Order.

          2016 and also furnish a copy of the enquiry report along with

          the said show-cause notice and thereafter take necessary action.

                      9. Per contra, the learned counsel appearing on behalf

          of the respondents has vehemently opposed the very

          maintainability of the writ petition and stated that the present

          writ petition is not maintainable as the petitioner has an

          alternative and efficacious remedy of filing a revision before the

          Commissioner. Learned counsel has therefore prayed this

          Hon'ble Court to dismiss the present writ petition.

                      10. This Court in CWJC No. 253 of 2014 dated

          11.03.2015 held as under:-

                                                 “In my opinion, irregularities
                                      in maintenance of notice board or
                                      maintenance of the stocks within the
                                      premises of the petitioner are too trivial
                                      and cannot form a basis for cancellation
                                      of licence. No doubt there were other
                                      serious charges against the petitioner
                                      regarding non-issuance of cash-memo to
                                      the consumers, distribution of lesser
                                      amount of kerosene oil and non-
                                      distribution of food- grains but
                                      surprisingly even while making such
                                      allegations, the names of such consumers
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                                      who are dissatisfied by such action of the
                                      petitioner are conspicuously missing. The
                                      allegations are sweeping in nature
                                      without reference to any specific
                                      consumer.
                                                 In my opinion the non-supply
                                      of the enquiry report conducted by the
                                      District Level Committee which is the
                                      foundation for issuance of show cause
                                      notice placed at Annexure-1 as well as
                                      non-supply of names of such of the
                                      consumers who had complained against
                                      the petitioner as regarding the
                                      irregularities in distribution of the food-
                                      grains or the kerosene oil has prejudiced
                                      the petitioner to file his purposeful reply
                                      and in absence thereof, the order
                                      impugned in my opinion, are based on no
                                      materials.
                                                 Though it was strenuously
                                      argued by Mr. Pandey that in absence of
                                      any response by the petitioner the
                                      allegations would be deemed to have
                                      been admitted but in my opinion even if
                                      the show cause reply was missing, the
                                      orders passed by the statutory authorities
                                      having civil consequences and resulting
                                      in cancellation should reflect application
                                      of mind. Unfortunately it is grossly
                                      missing inasmuch as neither the order of
                                      the Licensing Authority nor the order of
                                      the appellate authority deal with the
                                      materials which formed the basis to drive
                                      home the charges. The orders impugned
                                      are indefensible and cannot be upheld.”

                      11. Further this Hon'ble Court in CWJC No. 21202 of

          2021 and analogous cases has held as under:-
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                                             “19. Accordingly, we answer
                                  the reference as under:-
                                             It is mandatory for a licensing
                                  authority issuing a notice under order
                                  27(ii) to a license to mention that there is
                                  a proposal for cancellation of his license,
                                  failing which such notice cannot be
                                  treated to be a valid notice of giving
                                  sufficient opportunity to the licensee to
                                  state his case under order 27(ii) of the
                                  BTPDS Control Order.”
                      12. A perusal of the show-cause notice issued to the

          petitioner does not reveal that the copy of the enquiry report was

          enclosed along with the show-cause notice and that there is no

          proposal of the action sought to be taken against the petitioner.

                      13.     Having      regard     to   the   above   facts   and

          circumstances and the law laid down by this Hon'ble Court, the

          present CWJC is allowed. The impugned order dated

          19.09.2022 passed by the Divisional Commissioner, Purnea, the

          order dated 22.02.2022 passed by the District Magistrate,

          Purnea and the order dated 15.10.2020 passed by the Sub-

          divisional Officer, Baisi, Purnea are set aside. The matter is

          remanded back to the Sub-Divisional Officer for issuing a fresh

          show-cause notice to the petitioner strictly in compliance with

          the provisions of Rule 27(ii) of the Control Order, 2016 and also

          furnish a copy of the enquiry report along with the Show Cause

          Notice to the petitioner and call for his explanation by giving
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                     reasonable time.

                                 14. On such show-cause notice being served, the

                     petitioner shall file his explanation within the stipulated time.

                     On receipt of the explanation submitted by the petitioner the

                     authority concerned shall pass a reasoned orders strictly in

                     accordance with law duly taking into consideration the

                     explanation submitted by the petitioner.

                                 15. It is needless to mention that before passing any

                     orders, the petitioner shall be given an opportunity of hearing

                     The entire exercise shall be completed as expeditiously as

                     possible preferably within a period of eight weeks from the date

                     of receipt of a copy of this order. Any order passed shall be

                     communicated to the petitioner.

                                 16. With the above directions, this Writ Petition stands

                     allowed to the extent indicated.



                                                         (A. Abhishek Reddy, J)
shakir/-

U


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