Court holds that mere registration of a criminal case is not enough to cancel a Public Distribution System licence; orders restoration of supplies to dealer
Patna: The Patna High Court has set aside the cancellation of a Public Distribution System (PDS) licence, ruling that the mere institution of an FIR against a dealer cannot, by itself, be treated as a valid ground for cancellation under the applicable control order.
Justice Smt. G. Anupama Chakravarthy, hearing Civil Writ Jurisdiction Case No. 10841 of 2023 filed by Sakindra Roy, allowed the petition and quashed three orders passed by the authorities: the Sub-Divisional Officer’s order dated 26 November 2020 cancelling the licence, the Collector’s appellate order dated 12 March 2022, and the Divisional Commissioner’s revisional order dated 25 April 2023.
The petitioner had challenged the cancellation of his PDS dealership, contending that the action was illegal and contrary to Clause 29 of the PDS Control Order, 2016. He also sought restoration of his licence and allotment of his shop.
At the outset, counsel for both sides submitted that the controversy was no longer res integra and was squarely covered by an earlier decision of the same court in Vijendra Singh @ Vijagendra Singh v. State of Bihar, which had relied on the ruling in Umesh Ram v. State of Bihar, AIR 2014 Patna 113.
Following that precedent, the High Court reiterated that the mere filing or institution of an FIR does not amount to a sufficient legal basis for cancelling a PDS licence. The court observed that such a drastic administrative action cannot rest only on the pendency of a criminal case, unless there is a conviction or other legally sustainable ground justifying action under the law.
Accordingly, the court held that the cancellation order and the subsequent appellate and revisional orders could not stand. It directed that supplies to the petitioner be restored without delay.
However, the court also clarified that if the petitioner is later convicted in the criminal case, the authorities would remain free to take appropriate action in accordance with law.
The petition was thus allowed in terms of the earlier precedent, reinforcing the principle that administrative punishment in the PDS regime must be based on legal grounds and not merely on the registration of an FIR.
Bottom Line :
Public Distribution System - Mere institution of an FIR against a PDS dealer is not a valid ground for cancellation of PDS licence - Orders of cancellation and appellate/revisional orders based on such ground are liable to be set aside - Supply is to be restored, though authorities may proceed in accordance with law if dealer is later convicted.
Statutory provision(s): Clause 29 of the PDS Control Order, 2016, PDS (Control) Order, 2001, Rule 7 of the notification in G.S.R. No. 1 dated 20.02.2007
Sakindra Roy v. State of Bihar, (Patna) : Law Finder Doc id # 2984097
