Patna High Court Restored PDS License: Reasons In Show-Cause Notice Must Clearly Outline Grounds On Which Action Under Rules Is Proposed

The Patna High Court in the case Shyam Kumar Jha and Ors vs. The State Of Bihar and Ors observed and has quashed while setting aside the impugned orders wherein cancelling the petitioner’s PDS licence, while citing the violations of principles of natural justice.
The bench comprising of Justice Sanjeev Prakash Sharma in the case observed that the reason must be set forth in the show-cause notice wherein it is clearly outlining the various grounds on which the action under the said Rules is being proposed. Therefore, in the absence of the concerned licensee would be deprived of meting out with the allegations as the petitioner would also be in a position to defend himself.

The counsel appearing for the petitioner submitted before the court that several submissions challenging the cancellation of the petitioner’s license under the Public Distribution System Control Order, 2016, wherein quashing the cancellation order and seeking the restoration of the license.

However, it has only been mentioned in the show cause notice five discrepancies found during inspection, but the SDO considered the additional allegations made by the Block Supply Officer without providing a fair opportunity for the petitioner to respond to the same.

Further, the lack of a fair opportunity violated the Rule 27(2) of the PDS Control Order, which being similar to the earlier provision made under the 2001 Control Order.
Thus, the cancellation of the license is based on undisclosed allegations which being a violation of principles of natural justice.

The bench headed by Justice Sharma observed and has held that the impugned order is are not sustainable in law. Thus, the said license was cancelled by SDO Sadar, Darbhanga, and the same stands restored. It would also not preclude the concerned SDO for conducting a fresh inspection and pass orders, if it is being required.
Accordingly, the court disposed of the writ plea and has set aside the order.