Allowed

Ratnesh Kumar v. The State Of Bihar and Ors.

Patna HC15 Dec 2014CWJC/1440/2013

Case brief

AI extract

What is this about?

In a writ petition, the Patna High Court set aside an order cancelling a Fair Price Shop licence and restored the licence. The cancellation relied on allegations of black marketing, but the petitioner was acquitted in the criminal case due to lack of evidence. The Court held that the acquittal negated the grounds for cancellation, despite the pendency of a state appeal.

What did the court decide?

Impugned orders cancelling the licence dated 20.8.2011 and 4.1.2013 are set aside, and the petitioner's licence is restored, subject to final orders in the criminal appeal.

Ratnesh Kumar Vs The State Of Bihar and Ors. — Writ and Judicial Review | Patna HC (2014)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.1440 of 2013

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====================================================== 1. Ratnesh Kumar S/O Late Ram Jinish Rai Resident of Village- Fazilpur, P.S- Rajepur, Distt- East Champaran.

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.... .... Petitioner/s

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Versus

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1. The State of Bihar 2. The Principal Secretary Food & Civil Supply Department, Govt. of Bihar, Patna. 3. The District Magistrate, East Champaran, Motihari. 4. The Superintendent of Police East Champaran, Motihari. 5. The District Supply Officer East Champaran, Motihari. 6. The Sub- Divisional Officer, Pakari Dayal, Distt- East Champaran. 7. The Block Supply Officer Tetaria, Distt- East Champaran.

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.... .... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr.Kislay, Adv. Mr. Sangeet Deokuliar, Adv. Mr.Shashi Ranjan, Adv. For the Respondent/s : Mr. Vivek Prasad, G.P.18 Mr. S.K.Saraf, A.C. to GP18 ====================================================== CORAM: HONOURABLE MR. JUSTICE JYOTI SARAN ORAL ORDER 5 15-12-2014 Heard Dr. Kislay learned counsel for the petitioner and Mr. Vivek Prasad G.P.18 for the State. The petitioner is aggrieved by the order bearing Memo No. 1513 dated 20.8.2011 passed by the Licensing Authority -cumSub Divisional Officer, Pakri Dayal, District East Champaran whereby the licence granted to the petitioner under the provisions of the Bihar Fair Price Shop Order, 2007 issued under the Public Distribution System Control Order, 2001 bearing Licence No. 190 of 2007 has been cancelled on grounds of alleged black marketing

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Patna High Court CWJC No.1440 of 2013 (5) dt.15-12-2014

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of food grains and which order of the licensing authority has been affirmed when the statutory appeal preferred by the petitioner bearing Supply Appeal No. 35 of 2011 was dismissed on 4.1.2013 by the appellate authority being the District Magistrate, East Champaran at Motihari.

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Facts of the present case is in a very narrow compass.

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The petitioner was charged with indulging in black marketing of food grains and which led to the issuance of the show cause dated 16.8.2011 placed at Annexure-2 requiring him to respond to the allegation as well as institution of a criminal case bearing Rajepur P.S. Case No. 62 of 2011 registered for the offence punishable under Section 7 of the Essential Commodities Act. While the criminal case remained pending for adjudication that the proceedings under the control order culminated in an order of cancellation passed by the licensing authority on 20.8.2011 placed at Annexure-3 and has been affirmed in appeal by the appellate authority who dismissed the appeal on 4.1.2013, placed at Annexure-5 and hence this writ petition.

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The short argument advanced by Mr. Kislay praying for restoration of licence of the petitioner is by relying upon a judgment and order of the court below in the criminal case arising from G.R. No. 1043 of 2011, Tr. No. 1499 of 2013 arising from

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Patna High Court CWJC No.1440 of 2013 (5) dt.15-12-2014

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Rajepur P.S. Case No. 62 of 2011 which ended in an acquittal of the petitioner in absence of any evidence to support the charge of black marketing. He submits that when the very foundation on which the cancellation order rests stands removed, the petitioner becomes entitled for restoration of licence.

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Mr. Prasad learned counsel for the State while opposing the prayer of the petitioner has submitted that the department has moved in appeal against the order of acquittal and which is pending. He while contesting the prayer of the petitioner has fairly conceded that the foundation for the two proceedings rests on the charges of alleged black marketing.

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I have heard learned counsel for the parties and I have perused the materials on record.

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The records manifest that an inspection was carried out within the godown of the petitioner and when the Sub Divisional Officer found certain irregularities which according to him reflected that the petitioner was indulging in the act of black marketing. It is on this allegation that led to a proceedings for cancellation of licence as well as the criminal proceedings. While the proceedings under the Control order resulted in cancellation of licence, the criminal proceedings has ended in an acquittal. The acquittal is not by giving a benefit of doubt to the petitioner rather

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Patna High Court CWJC No.1440 of 2013 (5) dt.15-12-2014

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the acquittal is in absence of any evidence to connect the petitioner with the charge of black marketing. The judgment and order of acquittal leaves no room for confusion that the very basis for impugned order stands removed and mere pendency of Appeal No. 12818 of 2014 before the District Judge, East Champaran, Motihari would not act adverse to the contest raised by the petitioner.

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In view of the findings of the criminal Court as referred to above, there being no other reason to disentitle the petitioner to the relief prayed, the orders impugned dated 20.8.2011 passed by the licensing authority as affirmed in appeal by the District Magistrate vide order passed on 4.1.2013 in Appeal No. 35 of 2013 cannot be upheld and are accordingly set aside. As a consequence the licence of the petitioner stands restored and which restoration would be subject to any final orders passed in the criminal appeal preferred by the department.

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The writ petition is allowed.

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(Jyoti Saran, J)

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Bibhash/U

Ratnesh Kumar v. The State Of Bihar and Ors.

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Ratnesh Kumar v. The State Of Bihar and Ors.

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