SPECIAL DEPUTY THASILDAR ENFORCEMENT Vs. J VANAMMA

JUDGEMENT

(1.) The petitioner is a Fair Price Shop Dealer of Nernur Village, Gudur Mandal, Nellore District. On allegations that she has contravened the licence issued under A.P.Scheduled Commodities (Regulation of Distribution by Card System) Order, 173 (hereinafter called, the Order), the petitioner's licence was cancelled by the appointing authority, second respondent herein. Second respondent also imposed a fine of Rs.44,805/- purporting to be in terms of Clause-14A of the Order. The petitioner's appeal to the Joint Collector under Clause-17 of the Order and subsequent revision under Clause-18 of the Order to the District Collector were also dismissed. Hence, the writ petition. The learned counsel for the petitioner Sri K. Raji Reddy raised only one contention. He submits that imposing fine of Rs.44,805/- is illegal. According to the learned counsel Clause-14A of the Order which was introduced by amendment vide G.O.Ms.No.232, dt.12.3.1996 when the stock is diverted only the Revenue Divisional Officer can impose penalty three times the difference between the market rate and public distribution system rate of the commodities diverted. As there was no charge, and no finding to that effect is recorded, imposing fine is illegal. Learned Government Pleader for Civil Supplies, however, relies on a finding recorded by the Revenue Divisional Officer in relation to clause No.2 in support of the contention that sub-clause (c) of Clause 14A of the Order is attracted to the facts of the case.

(2.) The short question that falls for consideration is as to whether the order of the second respondent as confirmed by respondent Nos.3 and 4 imposing penalty of Rs.44,805/- besides cancelling the dealership is in accordance with Clause 14A of the Order. It is necessary to extract Clause 14A of the Order which reads as under. 14A. Penalties for possessing cards, making false entries or diverting stocks:- Notwithstanding anything contained in this order,- (a) If any fair price shop dealer is found to be in possession of supply card(s) or draws commodities by making false entries of card number(s) even though no such cardholder resides in the village/municipality as the case may be, such fair price shop dealer shall be required to pay loss to Government calculated as the difference between the market rate and Public Distribution System rate of all commodities supposed to have been supplied or drawn on such card(s) or entries, from the date of issue of authorization to the fair price shop dealer concerned or from the date of issue of such household supply card whichever is later; (b) If any fair price shop dealer makes false entry or entries in respect of card(s) held by person(s) regarding in the village/municipality concerned, by fraudulently showing to have supplied more quantities than the quantity actually supplied or diverts stocks to any person, but does not make any entry in the cards, with a view to making fictitious entries subsequently, or cover up the excess stocks already available with him, such dealer shall be required to pay loss to Government calculated as the difference between the market rate and Public Distribution System rate of the commodity actually delivered or covered by such false entry or entries worked backwards from the date of issue of authorization to the fair price shop dealer concerned or from the date of issue of such household supply card, whichever is later; (c) If any fair price shop dealer diverts stocks either wholly or partly, he/shall be liable to pay as penalty three times the difference between the market rate and Public Distribution System rate of the commodity thus diverted.

(3.) A plain reading of the above Clause would show that if a fair price shop dealer is found in possession of supply cards or possesses commodities by making false entries he shall be required to pay loss to the Government calculated as the difference between market rate and public distribution rate and all the commodities supposed to have been supplied or drawn on such cards or entries. As per sub-clause (b) of Clause 14A of the Order if a Fair Price Shop Dealer makes false entry in respect of cards held by persons residing in the village fraudulently showing to have supplied more quantities than quantity actually supplied or diverts the stocks to any person such dealer shall pay loss to the Government calculated as difference between market rate and public distribution rate. In case where Fair Price Shop Dealer diverts stocks either wholly or partly the penalty shall be three times difference between market rate and public distribution rate.