Court rules termination of temporary dealership without due procedure as a violation of natural justice; reinstates dealer pending proper inquiry.
The Andhra Pradesh High Court, in a significant judgment, has reaffirmed the importance of adhering to natural justice principles in administrative actions. The court, presided over by Justice Ravi Cheemalapati, passed the order in a writ petition filed by Sri Durga Mahila Podupu Sangam Self Help Group, challenging the termination of its dealership for a Fair Price Shop in Visakhapatnam.
The petitioner's dealership was abruptly terminated by the authorities without following the due process as mandated under the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018. The dealership was subsequently assigned to a permanent dealer, sparking legal action by the petitioner.
Represented by counsel M.M.M. Srinivasa Rao, the petitioner argued that the termination was executed without conducting an essential inquiry, thus breaching the principles of natural justice. The petitioner underscored that even as a temporary dealer, it was entitled to procedural fairness before any adverse action.
The court acknowledged the petitioner's contention, referencing the precedent set in K.Bharath v. The Collector (Civil Supplies), 2010 Supreme (AP) 1352, which emphasizes that both permanent and temporary dealers must be treated equally regarding procedural safeguards.
Justice Cheemalapati found the authorities' actions to be a "flagrant violation" of natural justice principles and reinstated the petitioner as the dealer of the Fair Price Shop. The court maintained that any future action against the dealership must strictly comply with the Control Order, 2018, and ensure a fair opportunity for the petitioner to be heard.
The judgment mandates that the respondent authorities, while not precluded from initiating proceedings, must adhere to legal processes without being swayed by any observations made during this hearing.
This ruling underscores the judiciary's role in safeguarding procedural fairness and the rights of individuals and organizations against arbitrary administrative actions.
Bottom line:-
Termination of dealership of a Fair Price Shop without following due procedure under the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 amounts to a violation of principles of natural justice.
Statutory provision(s): Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018
