MAA BANADURGA WSHG Vs. STATE OF ORISSA

JUDGEMENT

(1.) Heard learned counsel for the petitioner and the learned Addl. Government Advocate.

(2.) Grievance of the petitioner, which is a Women Self Help Group, operating in the name of Maa Banadurga WSHG, is that they were continuing as PDS distributor for entire Banibhusanpur Gram Panchayat and without any notice to them the license to deal with rice and other materials has been withdrawn as per Annexure-1 and they were only retained as Kerosene oil retailer only for six villagers. Learned counsel for the petitioner relies on the reported case of M/s. Sarata Distributors, Baro v. Collector, Kendrapara and others, 1995 2 OrissaLR 290, wherein it has been laid down that in exercise of powers under Clause 11 of the Kerosene Control Order, the Collector could not withdraw the area of operation from one licensee and give it to another licensee. It merely vests the power in the appropriate authority to issue any dealer in all matters including the purchase, sale or storage for sale or distribution of Kerosene and the licensing authority in this behalf is not questioned. The question for consideration in that writ application was as to whether during the continuance of a term of license the licensing authority can withdraw the area of operation of the licensee either in part or in full, in which event it would amount to cancellation of the license so far as withdrawn portion of the area of operation is concerned. Clause 10 states that cancellation or suspension of a license for breach of terms and conditions of the licensee and contravention of the provision of the Kerosene Control Order. There also it has been provided that an order cancelling or suspending the license or the certificate shall be made without giving the dealer an opportunity of being heard and without recording the reasons for such order. Similar provision appears in at Rule 14 of the Orissa Public Distribution System (Control) Order, 2008, which is reproduced below for appreciation:

(3.) Learned Addl. Government Advocate drew attention of the Court that the Sub-Collector, Boudh has passed the impugned order in view of the fact that the WSHG has no infrastructure like weighing scale used in weighing the essential commodities, panchayat membership like the S.C.S. and no audited account and balance sheet. Therefore, the license to distribute of P.D.S. rice has been withdrawn from the petitioner. If such is the case, nothing prevented to the Sub-Collector from issuing notice to the petitioner to show cause before cancellation of the order. It is not disputed that no opportunity of showing cause has been issued to the petitioner before cancellation of the licence to the P.D.S. rice and the petitioner's representatives were not heard in the manner.