VIMAL KHANDSARI UDYOG Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioner No. 1 is a partnership firm registered under the Partnership Act engaged in manufacture of Khandsari had applied for issuance of licence for manufacture and production of Khandsari Sugar as required under the provisions of Gujarat Gur and Khandsari Sugar (Regulation of Production) Order 1977 issued under the Essential Commodities Act. He was issued licence under the order dated 6th November 1981 By the letter dated 28.11.1981 the licence of the petitioner came to be renewed upto 31.12 stipulating certain conditions over and above the conditions imposed in the licence issued on 6.11.1981. By the notice dated 24.2.1984 the petitioner was required to show cause why the licence issued in his favour should not be cancelled as the factory of the petitioner is situated at a distance of about 8 kms. from the last village situated within the area of operation of the Sardar Patel Khand Udhyog Co.Op. Society Dhoraji. After hearing the petitioner by the order Annexure : E dropped the notice issued against the petitioner by categorically holding that there is no infirmity in granting licence to the petitioner. Meanwhile the petitioner moved an application for renewal of his licence up to 31.12 That renewal application was rejected by the impugned order dated 27.9.1983.

(2.) From the perusal of the impugned order dated 27.9 at Annex.F it appears that the renewal of the licence in favour of the petitioner has been refused and original licence has been cancelled on the ground that the factory of the petitioner is situated within the proximity of the aforesaid Sugar Factory of Sardar Patel Khand Udhyog Co.Op. Society Dhoraji so as to give unhealthy competition. The order of cancellation of renewal has been passed by the very same authority who has dropped the show-cause notice for cancellation of licence issued by the licensing authority on the very same ground.

(3.) Having heard the learned counsel for the parties and perused the record placed before me I am of the opinion that the impugned order Annexure: F is wholly unsustainable. It is difficult to understand how the very same authority who issued show-cause notice for cancellation of licence on the ground of situation of the petitioners factory in the close proximity of Dhoraji Co-Op. Society giving rise to apprehension of unhealthy competition between the two and finds on hearing other party held that licence has been rightly issued and it does not require to be cancelled can come to a different conclusion while considering the renewal application for the very same reason. No reasonable person can arrive at two inconsistance conclusions in almost identical circumstances in respect of same person and in respect of same subject matter merely on the ground that one was proceeding for cancellation and other was for renewal.