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Patna High Court

Mina Devi @ Mina KunwarversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

Mere institution of an FIR is not a valid ground for cancellation of a PDS licence under the Bihar Targeted Public Distribution System (Control) Order, 2016.

Summary

Mina Devi, a fair price shop licence holder under the Bihar Targeted Public Distribution System, challenged the cancellation of her licence which was based solely on the institution of an FIR against her. She filed a writ petition seeking quashing of the orders dated 23.01.2024 and 05.03.2026 that revoked her licence. The Court examined the PDS (Control) Order, 2001 and Rule 7 of the 2007 notification, holding that a mere FIR does not constitute a valid ground for suspension or cancellation of a licence. The decision was supported by the precedent set in Umesh Ram v. State of Bihar (AIR 2014 Patna 113). Consequently, both the SDO’s and the District Magistrate’s orders were set aside, the licence was restored, and the petition was allowed, with a proviso that action may be taken if a conviction occurs or other conditions are violated.

Issues considered

  • Whether the mere institution of a First Information Report is a sufficient ground for cancellation of a PDS dealership licence under the Bihar Targeted Public Distribution System (Control) Order, 2016.
  • Whether the authorities can cancel a licence without a criminal conviction under the said Order.
  • Whether the orders of the Sub‑Divisional Officer and the District Magistrate are ultra vires the statutory provisions.

Legislation cited

Subjects

  • PDS licence
  • Cancellation
  • First Information Report
  • Writ petition
  • Certiorari
  • Public Distribution System
  • Administrative law

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.7882 of 2026
                 ======================================================
                 Mina Devi @ Mina Kunwar W/o Late Mahesh Paswan, Resident of Village-
                 Paini Bedauli, Panchayat-Naudiha, P.S.- Imamganj, District- Gaya.

                                                                            ... ... Petitioner/s
                                                   Versus
           1.    The State of Bihar through the Principal Secretary, Department of Food and
                 Civil Supplies, Bihar, Patna.
           2.    The District Magistrate, Gaya.
           3.    The District Supply Officer, Gaya.
           4.    The Sub Divisional Officer, Sherghati, Gaya.
           5.    The Block Supply Officer, Imamganj, Gaya.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s    :         Mr. Abhash, Advocate.
                                                   Mr. Sudhir Kumar Sinha, Advocate.
                 For the Respondent/s    :         Mr. Nagendra Prasad Yadav, SC 23.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                    ORAL ORDER

3   07-07-2026                   Heard the learned counsel for the parties.

                                 2. The present Writ Petition has been filed for the

                   following relief/s:-

                                                        “(i) To issue an appropriate order/s
                                             direction/s including a writ preferably in the
                                             nature of Certiorari for quashing of the order
                                             dated 05.03.2026 as contained in Memo No. 954
                                             Vidhi Passed by District Magistrate, Gaya
                                             passed in Supply Appeal Case No. 09/2025 by
                                             which the learned District Magistrate, Gaya
                                             affirm the order passed in Memo No. 50/Aa
                                             Sherghati, dated 23.01.2024 issued by the
                                             learned SDO Sherghati, Gaya (hereinafter
                                             referred to as Licensing Authority under the
                                             Bihar Targeted Public Distribution System
Patna High Court CWJC No.7882 of 2026(3) dt.07-07-2026
                                            2/3




                                (Control) Order, 2016 whereby and whereunder
                                he has cancel the fair price shop license 76/2016
                                of the petitioner for committing illegality and
                                irregularity in distribution of food grains
                                amongst to the consumers.
                                           (ii) To direct the respondent No. 4 the
                                SDO Sherghati, Gaya to restore the PDS
                                dealership license of the petitioner henceforth
                                with taking into the consideration that the same
                                is only means of earning livelihood.”
                        3. Learned counsel for the petitioner submits that the

          solitary ground given in the show cause notice dated 15.06.2024

          vide Memo No. 282 for cancellation of the PDS licence of the

          petitioner was that an First Information Report (F.I.R.) bearing

          Imamganj P. S. Case No. 170 of 2024 had been instituted against

          the petitioner. Similarly, the impugned order has been passed on

          the sole ground of institution of the aforesaid FIR against the

          petitioner.

                        4. Learned counsel for the respondents appears and has

          been heard.

                        5. Having heard the parties and on consideration of the

          materials on record, this Court finds merit in the writ petition. A

          perusal of the PDS (Control) Order, 2001 read with Rule 7 of the

          notification in G.S.R. No. 1 dated 20.02.2007 makes it clear that

          mere institution of a First Information Report would not constitute

          a valid ground for suspension of the PDS licence. This view finds

          support from the decision of this Court in Umesh Ram vs. The

          State of Bihar and others, AIR 2014 Patna 113 as well.
           Patna High Court CWJC No.7882 of 2026(3) dt.07-07-2026
                                                       3/3




                                 6. In view of the above, the impugned order dated

                     05.03.2026 passed by the District Magistrate, Gaya and the order

                     dated 23.01.2024 passed by the                 Sub-Divisional Officer,

                     Sherghati, Gaya are both set aside.

                                 7. Needless to say, supplies to the petitioner shall be

                     restored without delay.

                                 8. It is made clear that, in case, the petitioner is

                     subsequently convicted in the criminal case instituted against her,

                     the authorities are free to take necessary action in accordance with

                     law.

                                 9. However, this order will not preclude the authorities

                     from taking action if it is found that the petitioner has violated any

                     other condition of the provisions of the Bihar Targeted Public

                     Distribution System (Control) order strictly in accordance with

                     law.

                                 10. With the above directions, the Writ Petition stands

                     allowed to the extent indicated.



                                                         (A. Abhishek Reddy, J)
shakir/-

U


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