Gauhati High Court Declines to Interfere in PDS License Cancellation

STAFF REPORTER

GUWAHATI: The Gauhati High Court (GHC) has upheld the cancellation of Fair Price Shop licenses of two Dibrugarh residents, ruling that the authorities acted within the bounds of law and that no case for judicial intervention was established.

The court heard a writ petition challenging an order issued on September 2, 2022, by the Deputy Director (in charge) of the Food, Civil Supplies and Consumer Affairs Department, which cancelled the petitioners’ Public Distribution System (PDS) licenses. The petitioners had alleged that the enquiry leading to the cancellation was unfair and that they were denied a proper opportunity to present their defence.

During the proceedings, the court noted that the licenses were initially placed under suspension in June 2018 after allegations surfaced against the license holders. Show-cause notices were subsequently issued, to which the petitioners submitted their replies in November 2018. The final decision to cancel the licenses followed the completion of the disciplinary process, which had earlier been directed by the High Court to be concluded within a stipulated time in a separate petition.

Rejecting the plea of procedural lapses, the court observed that the petitioners were afforded sufficient opportunity to respond and that their explanations were duly examined by the competent authority. It also held that the issuance of an additional show-cause notice by the Additional Deputy Commissioner did not cause any prejudice, particularly as the statutory remedy of appeal before the Deputy Commissioner remained available.

Justice Sanjay Kumar Medhi clarified that the High Court’s powers under Article 226 of the Constitution were limited to reviewing the manner in which a decision was taken and not reassessing the merits of the decision itself. Finding no illegality, lack of jurisdiction or mala fide intent in the impugned order, the court declined to interfere.

Accordingly, the writ petition was dismissed, confirming the cancellation of the Fair Price Shop licenses.

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