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Andhra Pradesh High Court Quashes Termination of Fair Price Shop Dealer, Orders Fresh Enquiry

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Andhra Pradesh High Court Quashes Termination of Fair Price Shop Dealer, Orders Fresh Enquiry

Court emphasizes adherence to principles of natural justice, mandates opportunity for cross-examination and proper consideration of explanations.


The Andhra Pradesh High Court has set aside the termination order of a Fair Price Shop dealer, M Adinarayana, directing a fresh enquiry in compliance with the principles of natural justice. Justice Ravi Cheemalapati delivered the judgment in Writ Petition No. 6133 of 2026, highlighting the necessity of a fair and reasoned enquiry process.


The petition arose after the authorities terminated Adinarayana's dealership based on allegations of irregularities, without providing an opportunity for cross-examination of complainants or considering the petitioner's explanations. The court noted that the impugned order was passed in a mechanical manner, without independent findings or adherence to the principles of natural justice, particularly the right to a fair hearing.


Citing previous cases, including B.Manjula v. District Collector, the court underscored the importance of a detailed enquiry with opportunities for the dealer to cross-examine complainants and for the authority to record reasons in writing. The court stressed that such procedures minimize arbitrariness and ensure clarity and fairness.


The judgment clarified that the existence of an alternative remedy does not preclude the court's jurisdiction under Article 226 of the Constitution, especially when the impugned order violates natural justice principles. Consequently, the court remitted the matter to the authorities for a fresh enquiry, ensuring all relevant materials and opportunities for cross-examination are provided to the petitioner.


The ruling reinforces the judiciary's commitment to upholding procedural fairness in administrative actions, emphasizing that affected parties must be allowed to test the veracity of adverse claims through cross-examination and be given a fair opportunity to present their case.


Bottom line:-

Principles of Natural Justice - Opportunity to cross-examine complainants and proper consideration of explanation is mandatory before passing adverse orders.


Statutory provision(s): Principles of Natural Justice, Article 226 of the Constitution of India


M Adinarayana v. State of Andhra Pradesh, (Andhra Pradesh) : Law Finder Doc id # 2946294

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