TAL CHAND SAH Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner is a dealer under the Public Distribution System and holds a licence now covered by the provisions of the Bihar Fair Price Shops Licensing Order, 2007. After issuance of show cause for certain dereliction, petitioner's licence was suspended. Enquiries were made and it was found that the suspension could not be justified. As such, the Sub Divisional Officer, who is the Licensing Authority, whilerevoking suspension recommended to the District Magistrate-cum-Collector for approval to revocation of the suspension order. Far less revoking the suspension, the District Magistrate did not accept the recommendation, as a consequence whereof, the Sub Divisional Officer cancelled petitioner's licence.

(2.) Mr. R. K. Agrawal, learned counsel appearing for the petitioner submits that apart from others, there are two glaring fatal mistakes committed by the authorities. Firstly, the suspension having been made, 90 days having expired, it ought to have been revoked. The second mistake is that the cancellation was not preceded by any show cause notice. In fact, there is a third mistake which is fatal. Once power to suspend was exercised then subsequently the power to cancel cannot be exercised for the same dereliction. A reference to Clasue- 7 of the Order would show that unlike Clause-11 of the Bihar Trade Articles (Licences Unification) Order, 1984 there is no provision for interim suspension without show cause. Here, under this order, suspension is by way of punishment after show cause. Thus, it is for the authorities to select either to suspend or to cancel or cancel at the initial stage itself. But, once having suspended and punishment having spent its force by expiry of 90 days, for the same dereliction, there cannot be any cancellation. The exercise of power to cancel is wholly without jurisdiction. It is held that the order of suspension was valid for the 90 days period only and cancellation is without jurisdiction. As such, it would be deemed that the petitioner has now a valid licence. Accordingly, Annexures-7 & 8 are quashed. The writ petition is allowed.