Prabhawati vs State of Up and 2 Others

Neutral Citation No. - 2025:AHC:109917

Court No. - 33

Case :- WRIT - C No. - 19455 of 2024

Petitioner :- Prabhawati Respondent :- State Of Up And 2 Others Counsel for Petitioner :- Ashish Srivastava Counsel for Respondent :- C.S.C.

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Hon'ble Prakash Padia,J.

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Heard Sri Ashish Srivastava, learned counsel for the petitioner, learned Standing Counsel appearing on behalf of State-respondent.

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Though vide order dated 01.08.2024 time was granted to the respondent to file the counter affidavit but till date no counter affidavit has been filed.

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The petitioner has preferred the present petition inter alia with the prayer to quash the order dated 27.10.2021 passed by the respondent no. 3/District Supply Officer, Rampur by which the fair price shop license of the petitioner has been cancelled. Aggrieved against the aforesaid, an appeal being No. 2033 of 2021 filed by the petitioner which was rejected by respondent no. 2/Commissioner Moradabad Division, Moradabad on 08.12.2023. Aggrieved against the aforesaid the petitioner has preferred the present petition.

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Learned counsel for the petitioner submitted that fair price shop licence of the petitioner has been cancelled in violation of the provisions contained under the Government Order dated 05.08.2019 as well as provisions contained under the U.P. Essential Commodities (Regulation of Sale and Distribution Control) Order, 2016. He next submitted that no preliminary enquiry has been conducted in the matter and the licence of the petitioner has been cancelled on misconceived grounds. He submitted that lodging of First Information Report under Section 3/7 of the U.P. Essential Commodities Act 1955 can not be a ground for the suspension or cancellation of the fair price shop licence unless there is proper enquiry in the

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matter He placed the reliance on the Full Bench Judgment of this Court passed in Misc. Single No. 8033 of 2013. D/d. 26.10.2017 Bajrangi Tiwari Vs. The Commissioner Devi Patan Mandal Gonda And Another in order to demonstrate that on the ground of lodging first information report, fair price shop licence cannot be cancelled in which following questions were referred to the Full Bench which reads as follows:-

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"1. Whether the fair price shop licence can be cancelled merely on lodging of a criminal case against the licencee?; and

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2. Whether, while passing any such order the Government Order dated 17.8.2002, particularly para-10 of said Government Order would be applicable/considered or not?"

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The answers of the aforesaid questions have been given by the Full Bench which reads as follows:-

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(i) The answer is no. Licence of a fair price shop cannot be cancelled merely on lodging of FIR against the licencee.

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(ii) The answer is no. The Government order dated 17.8.2002 relates to allotment of a fair price shop and hence the same cannot be referred to in suspension/cancellation of licence. It is the Government order dated 29.7.2014 according to which the suspension/cancellation of a fair price shop licence can take place.

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He submitted that in view of the violation of the mandatory provisions contained under the Government Order dated 05.08.2019 and the Control Order, 2016 the impugned orders can not be sustained and are liable to be set aside by this Court.

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It is argued that a writ petition was filed by one Amit Kumar being Writ C No.2029 of 2022 (Amit Kumar Vs. State of U.P. and others) before this Court and this Court taking into consideration the order passed by Full Bench of this Court in the case of Bajrangi Tiwari (supra) allowed the writ petition vide order dated 11.09.2024 holding therein that fair price shop license could not be cancelled merely on the ground of lodging of F.I.R. under Section 3/7 Essential Commodities Act. The order dated 11.09.2024 reads as follows:-

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1. Heard Sri Vishal Tandon, learned counsel for the petitioner and Sri Ravindra Kumar Tripathi, learned Standing Counsel for the State.

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2. Brief facts of the case are that petitioner was granted a licence for fair price shop and petitioner was running the fair price shop since long. Proceeding against the petitioner was initiated and the licence of the petitioner was cancelled vide order dated 26.12.2018. Appeal filed by petitioner against the cancellation order dated 26.12.2018 was also dismissed vide order dated 4.3.2021. Hence, this writ petition is filed for following reliefs:-

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"i) Issue a writ, order or direction in the nature of certiorari quashing the impugned order dated 04.03.2021 passed by Joint Commissioner Food Saharanpur in appeal no.93/2020-21 and 94/2020-21 and order dated 26.12.2018 and 1.9.2018 passed by District Supply Inspector Muzaffar Nagar.

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ii) Issue a writ, order or direction in the nature of mandamus directing to the respondent authorities to restore the fare price shop license in favour of the petitioner.

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iii) Issue a writ, order or direction which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case."

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3. This Court vide order dated 11.02.2022 entertained the matter and directed the State to file counter affidavit.

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4. In pursuance of the order dated 11.02.2022 the pleadings have been exchanged between the parties.

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5. Learned counsel for the petitioner submitted that fair price shop licence of the petitioner has been cancelled in violation of the provisions contained under the Government Order dated 05.08.2019 as well as provisions contained under the U.P. Essential Commodities (Regulation of Sale and Distribution Control) Order, 2016. He next submitted that no preliminary enquiry has been conducted in the matter and the licence of the petitioner has been cancelled on mis-conceived grounds. He submitted that lodging of First Information Report under Section 3/7 of the U.P. Essential Commodities Act 1955 can not be a ground for the suspension or cancellation of the fair price shop licence unless there is proper enquiry in the matter He placed the reliance on the Full Bench Judgment of this Court passed in Misc. Single No. 8033 of 2013. D/d. 26.10.2017 Bajrangi Tiwari Vs. The Commissioner Devi Patan Mandal Gonda And Another in order to demonstrate that on the ground of lodging first information report, fair price shop licence cannot be cancelled. He submitted that in view of the violation of the mandatory provisions contained under the Government Order dated 05.08.2019 and the Control Order, 2016 the impugned orders can not be sustained and are liable to be set aside by this Court.

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6. Learned Standing Counsel for the State submitted that proceedings were initiated against the petitioner and it has been found that there was irregularity on the part of the petitioner regarding distribution of essential commodities to the cardholders, as such licence of the petitioner has rightly been cancelled. He submitted that criminal proceeding was also initiated against the petitioner and the First Information Report has been lodged under Section 3/7 of the Essential Commodities Act and Section 420 of Indian Penal Code as such no interference

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is required in the matter and the writ petition is liable to be dismissed.

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7. I have considered the arguments advanced by the learned counsel for the parties and perused the record.

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8. There is no dispute about the fact that petitioner was granted fair price shop licence by the Authorities. There is also no dispute about the fact that under the impugned order, the petitioner's licence has been cancelled and the appeal has also been dismissed.

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9. In order to appreciate the controversy involved in the matter a perusal of the Government Order dated 05.08.2019, which is applicable to Rural and Urban Area in respect to the suspension/cancellation of the fair price shop licence will be necessary which is as under:

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पप्रेषक ,

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ओम पककाश वमकार , ववशप्रेष सवचिव ,

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उत्तर पदप्रेश शकासन।

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सप्रेवका मम ,

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1- आययक , खकाद्य एववं रसद ववभकाग , उ०प०।

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2- समस्त जजिलकाजधिककारर , उत्तर पदप्रेश।

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3- समस्त जजिलका पपूवतर अजधिककारर ,

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उत्तर पदप्रेश।

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खकाद्य एववं रसद अनयभकाग -6

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लखनऊऊः वदनकावंक 05 अगस्त , 2019

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ववषयऊः गकामरण एववं शहरर कप्रेत्र ककी उवचित दर ककी दयककाननों कप्रे वनलम्बन / वनरस्तरकरण एववं सम्बदरकरण कप्रे सम्बन्धि मम पवक्रियका कका वनधिका र ण।

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महहोदय ,

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उपययरक ववषयक लवकत सकावरजिवनक ववतरण पणकालर कप्रे अन्तगरत ककाय र त उवचित दर दयककाननों कप्रे ववरूद पकाप्त वशककायतनों ककी जिकावंचि एववं तत्क्रिम मम उनकप्रे ववरुद सवंपकावदत ककी जिकानप्रे वकालर ककायरवकावहयनों

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यथका वनलम्बन , वनरस्तरकरण एववं सम्बदरकरण कप्रे सम्बन्धि मम समय - समय पर वववभन्न शकासनकादप्रेशनों कप्रे मकाध्यम सप्रे वनदरश पसकाररत वकयप्रे गयप्रे हह। वतरमकान मम लकागपू रकाषषरय खकाद्य सयरकका अजधिवनयम - 2013 एववं तत्क्रिम मम जिकारर उत्तर पदप्रेश आवश्यक वस्तय ( ववक्रिय एववं ववतरण वनयवंत्रण कका वववनयमन ) आदप्रेश -2016 तथका उत्तर पदप्रेश खकाद्य सयरकका वनयमकावलर -2015 कप्रे पख्यकापन तथका लकाभकाजथरयनों कहो आवश्यक वस्तयओवं कप्रे ववतरण मम तकनरककी अनयपयहोग ( पबबलक पहोररल पर सम्बद लकाभकाजथरयनों कका ऑनलकाइन पदशरन एववं तद्नयसकार आववंरन कका ससृजिन तथका ई०पर०ओ०एस० मशरननों कप्रे मकाध्यम सप्रे करकायप्रे जिका रहप्रे ववतरण ) तथका डहोर स्र्रे वडलरवरर कका ककायर पचिजलत हहोनप्रे कप्रे प दृवषगत पपूवर मम वनगरत समस्त शकासनकादप्रेशनों कहो अवक्रिवमत करतप्रे हहयप्रे वतरमकान पररदृश्य मम वनम्नवत व्यवस्थका वनवदरष वकयप्रे जिकानप्रे कका मयझप्रे वनदप्रेश हहआ हह :-

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1- उवचित दर दयककाननों कप्रे ववरूद पकाप्त वशककायतनों ककी जिकावंचि -

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(1) उवचित दर ववक्रिप्रेतकाओवं कप्रे ववरूद सकामकान्यतयका आवश्यक वस्तयएएँ पकाप्त न हहोनप्रे , ववक्रिप्रेतका दकारका घरततौलर वकयप्रे जिकानप्रे , अजधिक मपूल्य जलयप्रे जिकानप्रे , एववं सपूचिर मम नकाम न हहोनप्रे कका बहकानका बनकाकर खकाद्यकान्न न दप्रेनप्रे , ई - पपॉस मशरन मम नप् र ेवकर न आनप्रे सव र डकाउन हहोनप्रे कका बहकानका बनकाकर खकाद्यकान्न ववतरण कप्रे पपूवर हर बकायहोमप्रेवरषक पमकाणरकरण करकाकर लकाभकाजथरयनों कहो वकास्तव मम खकाद्यकान्न न दप्रेकर ककालकाबकाजिकारर कर लप्रेनप्रे तथका यपूवनर कप्रे सकापप्रेक कम खकाद्यकान्न दप्रेनप्रे , ककाडर मम दजिर यपूवनरनों कप्रे सकापप्रेक कम यपूवनर कप्रे आधिकार फकीड हहोनप्रे कका आधिकार लप्रेकर शप्रेष यपूवनरनों कका खकाद्यकान्न न दप्रेनप्रे , उपभहोककाओवं सप्रे दयव्यरवहकार करनप्रे , समय सप्रे दयककान न खहोलनप्रे , आवश्यक सपूचिनकाओवं कका पदशरन न करनप्रे , आवद वशककायतम पकाप्त हहोतर हह। वशककायत मयख्यतऊः मका० मयख्यमवंत् र हप्रेल्प लकाइन , ववभकागरय रहोल फकी नम्बर कपॉल सप्रेन्रर , आई०जिर०आर०एस० , तहसरल वदवस , उप जजिलकाजधिककारर , जजिलका पपूवतर अजधिककारर , जजिलकाजधिककारर , मण्डलकाययक , खकाद्यकाययक एववं शकासन पर जलजखत मम डकाक दकारका , व्यवकगत रूप सप्रे एववं दपूरभकाष पर पकाप्त हहोतर हह। वशककायतकतकार मयख्यतऊः तरन पककार कप्रे हहो सकतप्रे हह , यथका वववशष व्यवक , सम्बबन्धित उवचित दर ववक्रिप्रेतका सप्रे सम्बद ककाडरधिकारक एववं सम्बबन्धित उवचित दर ववक्रिप्रेतका सप्रे सम्बद लकाभकाजथरयनों सप्रे वभन्न अन्य शहोत / व्यवकयनों कप्रे स्तर सप्रे पकाप्त वशककायतम।

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(2) उपरहोककानयसकार पकाप्त हहोनप्रे वकालर वशककायतनों पर ककायरवकाहर जिकाएँचि कप्रे सम्बन्धि मम वनम्नवत पवक्रियका अपनकायर जिकायप्रे -

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( क ) वववशष व्यवकयनों सप्रे पकाप्त वशककायतर पत्रनों कप्रे सम्बन्धि मम ककायरवकाहर आरम्भ करनप्रे सप्रे पपूवर

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सम्बबन्धित वववशष व्यवक कहो पत्र भप्रेजिकर यह पयवष कर लर जिकाय वक पत्र उन्हहीं कप्रे दकारका हस्तकाकररत हह और वशककायतनों कप्रे सम्बन्धि मम उनकहो समकाधिकान हहो गयका वक वशककायतम तथ्यनों पर आधिकाररत हह।

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( ख ) सम्बबन्धित उवचित दर ववक्रिप्रेतका सप्रे सम्बद ककाडरधिकारकनों कप्रे स्तर सप्रे पकाप्त वशककायतनों पर ककायरवकाहर सप्रे पपूवर वशककायतनों ककी पकारबम्भक जिकाएँचि ककी जिकाए। उवचित दर दयककाननों कप्रे ववरूद जिकाएँचि पवक्रियका कप्रे दतौरकान ववक्रिप्रेतका दकारका ई - पपॉस कप्रे मकाध्यम सप्रे वकयप्रे गयप्रे ववतरण कका वववरण ( एम०आई०एस० ररपहोरर ) जिहो पबबलक पहोररल पर उपलबधि हह , कका सवंजकान अवश्य जलयका जिकाय। ववक्रिप्रेतका दकारका पदवशरत ववतरण कका वमलकान ककाडरधिकारकनों कप्रे रकाशन ककाडर मम दयककानदकारनों दकारका ककी गयर पवववषयनों सप्रे भर वकयका जिका सकतका हह। सकाथ हर वशककायतकतकार व अन्य सम्बबन्धित पकनों कका कथन अंकत करतप्रे समय उनकका व पवतपररकण भर अवश्य वकयका जिकायप्रे तकावक जिकाएँचि ककायरवकाहर ककी वनष्पकतका पथम दृषयका स्थकावपत हहो एववं अनकावश्यक जलवरगप्रेशन ककी बस्थवत उत्पन्न न हहो। ( ग ) अन्य सहोतनों / व्यवकयनों सप्रे पकाप्त वशककायतनों कप्रे सम्बन्धि मम यवद वशककायतर पत्र शपथ पत्र सप्रे समजथरत नहहीं हह , तहो वशककायतकतकार सप्रे इस बकारप्रे मम एक शपथ पत्र उपलबधि करकानप्रे कहो कहका जिकाए और शपथ पत्र पकाप्त हहोनप्रे कप्रे उपरकान्त हर आगप्रे ककी ककायरवकाहर ककी जिकाए।

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( घ ) उवचित दर ववक्रिप्रेतका कप्रे ववरूद वकसर एक यका अत्यन्त अल्प सवंख्यका मम उपभहोककाओवं दकारका उवचित दर ववक्रिप्रेतका ककी दयककान पर जिकानप्रे कप्रे बकावजिपूद अपनका अनयमन्य खकाद्यकान्न पकाप्त न हहोनप्रे ककी बस्थवत मम वप्रे अपनर वशककायत जजिलका वशककायत वनवकारण अजधिककारर कप्रे समक भर दजिर करका सकतप्रे हह , जिहो वनधिका र रत पवक्रियका कका पकालन करतप्रे हहए पकरण कप्रे पररकणहोपरकान्त उसककी वनयमकानयसकार हकदकारर / खकाद्य सयरकका भत्तका वदलकायका जिकानका सयवनबश्चित करमगप्रे। "

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10. A perusal of the Government Order as quoted above fully demonstrates that preliminary inquiry is to be conducted by the Authorities before suspension/cancellation of the fair price shop licence of the licence holder. 11. Perusal of the aforesaid Government Order dated 05.08.2019 as well as impugned orders and other evidence on record reveals that procedure prescribed under the Government Order has not been followed by the authority and the licence of the petitioner has been cancelled on the ground that first information report has been lodged against the petitioner under Section 3/7 of the U.P. Essential Commodities Act and Section 420 of Indian Penal Code. In full Bench judgment of this Court in Bajrangi Tiwari (Supra) it has been clearly held that fair price shop can not be cancelled merely on the ground of lodging criminal case.

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12. Considering the entire facts and circumstances of the case as well as the ratio of law laid down by the Full Bench of this Court in Bajrangi Tiwari (Supra) impugned order dated 26.12.2018 passed by the respondent no. 3 and appellate order dated 4.3.2021 passed by the respondent no. 2 are liable to be set aside and the same are hereby set aside.

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13. The writ petition stands allowed and the respondents are directed to restore the fair price shop licence of the petitioner forthwith.

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14. No order as to costs.

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The aforesaid order was challenged before the Hon’ble Supreme Court by one Mohd. Amir by filing Special Leave Petition (Civil) No.25501 of 2024 (Mohd. Amir Vs. State of U.P. and others) and the aforesaid S.LP. was dismissed by the Hon’ble Supreme Court vide order dated 21.04.2025. The order dated 21.04.2025 reads as follows:-

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1. We are not inclined to interfere with the impugned judgement and order of the High Court; hence, the special leave petitions are dismissed.

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2. Pending application(s), if any, shall stand disposed of.

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Learned Standing Counsel for the State submitted that proceedings were initiated against the petitioner and it has been found that there was irregularity on the part of the petitioner regarding distribution of essential commodities to the cardholders, as such licence of the petitioner has rightly been cancelled. He submitted that criminal proceeding was also initiated against the petitioner and the First Information Report has been lodged under Section 3/7 of the Essential Commodities Act, as such no interference is required in the matter and the writ petition is liable to be dismissed.

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I have considered the arguments advanced by the learned counsel for the parties and perused the record.

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Since pure question of law is involved in the present writ petition as such with the consent of counsel for the parties, present writ petition is being decided at the admission stage itself.

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There is no dispute about the fact that petitioner was granted fair price shop

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licence by the Authorities and the same has been cancelled, against which appeal has been filed and the same has also been dismissed.

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A perusal of the Government Order as quoted above fully demonstrates that preliminary inquiry is to be conducted by the Authorities before suspension/cancellation of the fair price shop licence of the licence holder.

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Perusal of the aforesaid Government Order dated 05.08.2019 as well as impugned orders and other evidence on record reveals that procedure prescribed under the Government Order has not been followed by the authority and the fair price shop licence of the petitioner has been cancelled on the ground that first information report has been lodged against the petitioner under Section 3/7 of the U.P. Essential Commodities Act . In full Bench judgment of this Court in Bajrangi Tiwari (Supra) it has been clearly held that fair price shop license can not be cancelled merely on the ground of lodging of criminal case.

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Apart from the same, very recently a detailed judgement has been delivered by this Court in bunch of cases leading Writ C No. 38609 of 2019 ( M/S Sajid Vs. State of U.P. and 2 other) along-with 21 connected writ petitions on 10.06.2025. Against which several Special Leave Petitions were filed by the subsequent allottees, which was numbered as Special Leave Petition (Civil) Diary No(s).34331 of 2025 (Farhana Vs. State of U.P.) was filed before the Apex Court, which were dismissed by the Hon'ble Apex Court vide judgement and order dated 03.07.2025. The order dated 03.07.2025 reads as follows :-

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"1. Permission to file SLP(s) is granted.

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2. Delay condoned.

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3. Heard the learned counsel appearing for the petitioner(s).

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4. We are not inclined to interfere with the impugned judgment passed by the High Court. Hence, the Special Leave Petitions are dismissed.

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5. Pending applications, if any, shall stand disposed of."

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This fact is also admitted by the counsel for the parties.

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The Full Bench judgment of this Court in the case of Bajrangi Tiwari (Supra) held that license of fair price shop cannot be cancelled merely on the ground of lodging criminal case. The aforesaid law has been again reaffirmed by this Court in the case of Amit Kumar (supra) which has also been affirmed by the Hon'ble Supreme Court in the case of Mohd. Amir (supra) as well as in the case of M/s Sajid (supra) which has been affirmed by the Hon'ble Apex Court in the Special Leave Petition filed by Farhana (supra).

¶74

In view of the above discussion, the Court is of the opinion that the fair price shop licence/agreement could not be cancelled on the ground of registration of F.I.R. under Section 3/7 Essential Commodities Act.

¶75

In this view of the matter, impugned order dated 27.10.2021 passed by the respondent no. 3/District Supply Officer, Rampur & order dated 08.12.2023 passed by respondent no. 2/Commissioner Moradabad Division, Moradabad are liable to be set aside and the same are hereby set aside.

¶76

The writ petition is allowed and the concerned-respondents are directed to restore the fair price shop licence of the petitioner forthwith.

¶77

Order Date :- 10.7.2025 Arti

¶78

Digitally signed by :- ARTI SHARMA High Court of Judicature at Allahabad

Prabhawati v. State of Up and 2 Others

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Prabhawati v. State of Up and 2 Others

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