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1998 DIGILAW 779 (PAT)

Md. Mumtaj v. State Of Bihar

1998-11-12

NAGENDRA RAI

body1998
Judgment 1. All the aforesaid writ applications have been heard together and as such, they are being disposed by this common order. 2. The petitioners are aggrieved by the orders as contained in Annexure 3 cancelling their licences to run fair price shop under the provisions of the Bihar Trade Articles (Licences Unification) Order, 1984 (hereinafter referred to as the Unification Order) as well as the appellate order dated 25.7.1997 (Annexure 4) dismissing the appeal against the aforesaid orders. 3. The admitted facts are that the petitioners have been granted licence under the Unification Order to run fair price shops in different villages falling under the different panchayats. On the allegation that they are not the residents of the panchayats where shops are located, notices were issued to them to show cause as to why their licences be not cancelled in terms of the Government policy contained in letter No. 8444 dated 8.10.1980 issued by the Food Commissioner where it is provided that licences have to be granted to the persons who have their residence in the same panchayat. The petitioners filed their show cause and have submitted that there is no provision under the Unification Order requiring the licences to be the residents of the same panchayat and as such, the licence cannot be cancelled on the basis of the aforesaid ground which was issued prior to coming into force of the Unification Order. 4. The licensing authority after considering the show cause by order contained in Annexure 3 in all the cases, cancelled the licences. The orders of cancellation have been upheld in appeal. That the authorities came to the conclusion that the petitioners by suppression of fact obtained licences which is against the Government Policy. They are not the residents of the panchayat where their shops are located. 5. Learned Counsel for the petitioners submitted that they are the licences under the Unification Order and their licences can be cancelled for breach of the terms and conditions of the licences or the provisions of the Unification Order. There is no provision either under the Unification Order or in the licence that the licensee should be the resident of same panchayat where their shops are located. In that view of the matter, the ground of cancellation of licence is not sustainable in law. There is no provision either under the Unification Order or in the licence that the licensee should be the resident of same panchayat where their shops are located. In that view of the matter, the ground of cancellation of licence is not sustainable in law. In support of their submission, learned Counsel for the petitioners had relied upon a Bench decision of this Court in M/s. Vishnu Roller Flour Mills (P) Ltd., 1994 (1) East CrC 109, wherein it has been held that the licence can be suspended or cancelled only on the grounds mentioned in the Unification Order and not on any other grounds. They have further relied upon a judgment of the learned Single Judge of this Court in CWJC No. 2496 of 1997 (R) disposed of on 7.4.1998 wherein this Court has held that the licence cannot be cancelled on the ground that licensees are not the residents of panchayats where shops are located. Thus, in view of the aforesaid judgment of this Court, I am of the view that the orders of the Licensing authority contained in Annexure 3 and the appellate order contained in Annexure 4 are not sustainable in law. The licence has been granted under the Unification Order. There is no allegation that the petitioners have violated the terms and conditions of the Unification Order or the licence granted thereunder and as such the cancellation of the licence on the ground that they are not the residents of the panchayat in question is not a relevant and valid ground. Accordingly, the Orders contained in Annexures 3 and 4 are hereby-quashed. 6. In the result, all the writ applications are allowed. However, it is made clear that it is always open for the Government to issue circular/notification or to make amendment in the Unification Order incorporating such provision for giving better service to the poor citizens.