ANADI CHARAN ROUT Vs. COLLECTOR OF CUTTACK

JUDGEMENT

(1.) THE petitioner's case is that he purchased a rice huller on 30th of May, 1957, and the same stopped functioning, due to mechanical troubles, in August 1958. On 22nd April, 1959, the Rice-Milling Industry (Regulation) Act, 1958 (21 of 1958), (hereinafter to be referred to as 'the Act') came into force. On 1st September, 1960, the licence in favour of the petitioner was renewed. On 23rd of January, 1970, renewal was granted for the year 1970. There was some complaint made by opposite party No. 3 before the S. D. O. Cuttack. that the petitioner had got the licence on certain false averments and his also was not a defunct rice mill. Against the order dated 23-1-1970 renewing the licence of the petitioner, opposite party no. 3 filed an appeal before the Secretary to the Government. Supply Department, (O. P. No. 2), and in the appellate order the Secretary gave a direction that the licence issued by the Collector should be revoked. In accordance with that direction, the Collector issued a notice (Annexure 7) on 7-10-1970, calling upon the petitioner to surrender the licence and to pay the fine as imposed by the appellate authority. It is against this order the present application has been filed under Articles 226 and 227 of the Constitution.

(2.) MR. Mohanty, for the petitioner, contended that against the order granting licence no appeal lay to the Secretary (O. P. No. 2), and as such the direction given by the appellate authority for cancelling the licence, and the imposition of fine made by him are without jurisdiction.

(3.) TO appreciate the aforesaid contention a reference may be made to Sections 6, 7 and 12 of the Act. Under Section 6 licences are granted. Under Sub-section (2) every application under Sub-section (1) shall be made in the prescribed form (form No. 3 under rule 4 (2)) and shall contain the particulars as prescribed therein. There is no provision in Section 6 as to an inquiry and inviting objections from rival claimants or any outsider before granting the licence. Section 7 deals with conditions for revocation, suspension and amendment of licences, and says that if the licensing officer is satisfied, either on a reference made to him in this behalf or otherwise that a licence granted under Section 6 has been obtained by misrepresentation as to an essential fact then, without prejudice to any other penalty to which the holder of the licence may be liable under the Act the licensing officer may, after giving the holder of the licence an opportunity of showing cause, revoke or suspend the licence.