Ananta Kumar Sethi vs Collector and Others

M.M. Das, J.—Heard Mr. Rath, learned Counsel for the petitioner and Mr. B. Dash, learned Counsel for the State.

The petitioner has called in question the order dated 3.3.2008 passed by the Sub-Collector, Balasore suspending his licence granted under the Orissa P.D.S. (Control) prder, 2002 (for short, ''the Control Order'').

Mr. Rath, learned Counsel for the petitioner submits that the petitioner was a licensee under the aforesaid Control Order and on the self-same ground of non-supply of P.D.S. rice to one of the beneficiaries, a show cause notice was previously issued to him and on consideration of the said show cause notice, the petitioner''s security was forfeited. But, however, he was reinstated as a licensee under the aforesaid Control Order.

Mr. Rath further submits that for the similar nature of allegation for the self-same period, again supply of monthly quota to him as a P.D.S. Retailer has been suspended by the impugned order without issuing any prior show cause notice as contemplated under Clause 10 of the Control Order. Clause 10 of the Control Order reads as follows:

Contravention of conditions of licence- No holder of a licence issued under this order or his agent or servant or any other person acting on his behalf shall contravene any of the terms of conditions of the licence and if any such person contravenes any of the said terms and conditions, without prejudice to any other action that may be taken against him, his licence may be cancelled or suspended by order in writing of the Licensing Authority.

Provided that no order shall be made under this Clause unless the licenses has been given a reasonable opportunity of stating his case against the proposed cancellation or suspension.

A bare reading of the aforesaid Clause clearly shows that any Dealer/Retailer/Licensee if contravenes any of the terms and conditions of the licence, his licence is liable to be suspended or cancelled by a written order of the Licensing Authority without prejudice to any other action that may be taken against him. However, such steps can be taken only by giving a reasonable opportunity to file a show cause to the Retailer/Dealer/Licensee before passing of such order.

Mr. Dash, learned Counsel for the State submits that in the impugned order, the licence having neither been suspended or cancelled, but it having been ordered only to keep the monthly quota under suspension, the proviso to Clause 10, as quoted above, has no application to the facts of the case.

Mr. Rath, relying upon the decision in the case of Kanhu Charan Mtehra v. State of Orissa and four Ors. 2005 2 OLR 772 submits that withholding the monthly quota amounts to suspension of licence.

On perusal of the said decision, it appears that in the facts of the said case, a similar order was passed by the Sub-Collector suspending the supply of monthly quota of the petitioner, who was a Retailer. This Court taking note of Clause 10 of the Control Order, set aside the said order suspending supply of monthly quota and disposed of the writ petition with a direction to give opportunity to the petitioner therein to file a show case and pass necessary orders only after consideration of the said cause shown.

The facts of the present case are similar to the facts in the case of Kanhu Charan Mishra (supra). I also find that suspending the monthly quota of a Retailer/Dealer under the Control order, in effect, amounts to suspension of the licence, as in the event of non-supply of monthly quota, the licence becomes meaningless.

Since I find that the impugned order has been passed without giving an opportunity of filing show cause to the petitioner, the said order cannot be sustained. The impugned order under Annexure-3 is, therefore, quashed. However, it would be open for the Licensing Authority to proceed in accordance with Clause 10 of the Control Order, if required and in such event, he shall issue a show cause notice to the petitioner and shall thereafter proceed in accordance with law.

The writ petition is accordingly disposed of.

Urgent certified copy of this order be granted as per rules.