Citation : 2023 Latest Caselaw 2896 Bom
Judgement Date : 24 March, 2023
2023:BHC-AS:8941
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Santosh
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 1141 OF 2022
WITH
INTERIM APPLICATION NO. 2687 OF 2022
WITH
WRIT PETITION NO. 1120 OF 2022
WITH
INTERIM APPLICATION NO. 2686 OF 2022
Ravindra Arvind Bande
Adult, Occu. Business
R/at : Laketown Society, B11, Flat
No.903, Katraj, Pune 411 037 ...Petitioner
Versus
1 Smt. Vijaya Manohar Bande
Age - Adult, Occupation - Household
2 Sou. Swati Vijay Kale
Age - 40, Occupation - Household
Both residing at - Flat No. 904 E5,
Bramha Sun City, Wadgaon Sheri,
Pune 411 014
3 Director, Marketing,
State of Maharashtra, Pune
Having address at - 3rd Floor, New
Central Building, Pune 411 001
4 Administrator Agricultural Produce
Market Committee, Pune, Having
address at - Chatrapati Shivaji Market
Yard, Pune - 411 037
5 Joint Director of Agricultural Marketing,
State of Maharashtra, Pune
Having address at - 3rd Floor, New
Central Building, Pune - 411 001
6 State of Maharashtra
[Summons to be served on the learned
Government Pleader appearing for State
of Maharashtra under Order XXVII, Rule
4, of the Code of Civil Procedure, 1908 ...Respondents
1/21
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Mr. Anil Anturkar, Senior Advocate, i/b Mr. Prathamesh
Bhargude, for the Petitioner in both petitions.
Mr. S. C. Wakankar, for Respondent Nos.1 and 2 in
WP/1141/2022.
Mr. Ashish Gaikwad, for Respondent Nos.1 and 2 in
WP/1120/2022.
Mr. C. D. Mali, AGP for the State/Respondent Nos.3, 5 and 6
in both petitions.
Mr. Pratap Patil, for Respondent No.4 in both petitions.
CORAM: N. J. JAMADAR, J.
RESERVED ON: 9th MARCH, 2023 PRONOUNCED ON: 24th MARCH, 2023 JUDGMENT:-
1. Rule. Rule made returnable forthwith and with the
consent of the learned Counsel for the parties heard finally.
2. These petitions under Article 227 of the Constitution of
India assail the legality, propriety and correctness of a common
order dated 14th January, 2022 passed by the Joint Director
(Marketing) Maharashtra State, Pune, purportedly under
Section 52B of the Maharashtra Agricultural Produce Marketing
(Development and Regulation) Act, 1963 ("the Act, 1963"),
whereby and whereunder the appeals preferred by the petitioner
challenging the cancellation of the licence granted to the
petitioner in respect of a Stall bearing No.124 situated at
Chhatrapati Shivaji Maharaj Market Yard, Gultekdi, Pune and
the issue of the licence to respondent Nos.1 and 2, in respect of
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the very same Stall by the Market Committee, came to be
dismissed.
3. Background facts necessary for determination of these
petitions can be stated in brief as under:
(a) The petitioner claimed that late Manohar Bande, the
husband of respondent No.1 and father of respondent No.2, was
the petitioner's uncle. The petitioner and Manohar Bande were
jointly running a business under the name and style of M/s.
Shriram Traders at Stall No.124, Market Yard, Pune, which was
given on lease by the Agricultural Produce Market Committee,
Pune ("the Market Committee"), to respondent No.4, for a period
of 99 years, to Manohar Bande. The petitioner asserts petitioner
was looking after the entire business of M/s. Shriram Traders
exclusively as Manohar had been unwell for a long period before
he passed away on 29th December, 2017.
(b) The petitioner asserts that Manohar Bande had
executed a Will on 6th November, 2015 and bequeathed all of his
properties, including Stall No.124, to the petitioner. During the
lifetime of Manohar, in the year 2009, respondent No.2 the
daughter of Manohar, had executed a registered Release Deed
relinquishing her rights and interest in the property of Manohar,
which eventually came to be bequeathed to the petitioner.
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(c) In the year 2019, respondent Nos.1 and 2 instituted a
suit being RCS No.1915 of 2019 falsely alleging that the
registered Release Deed and Will were fraudulently obtained and
did not bind the respondent Nos.1 and 2.
(d) In the meanwhile, the Market Committee issued the
licence on 27th September, 2018 to carry on the trade from the
Stall No.124 to the petitioner. The licence came to be renewed
till the year 2023.
(e) On 10th August, 2019, an application was filed by
respondent Nos.1 and 2 before the Market Committee seeking
transfer of Stall No.124 in their name alleging fraud on the part
of the petitioner. On 6th February, 2021, the Market Committee
resolved to revoke the licence granted in favour of the petitioner
and by a subsequent order dated 23rd April, 2021, the licence
came to be granted in the name of respondent Nos.1 and 2,
without providing any opportunity of hearing to the petitioner.
4. Being aggrieved, the petitioner preferred appeals being
Appeal No.30 of 2021 and Appeal No.46 of 2021 before the
Director (Marketing).
5. Initially, by an order dated 22nd April, 2021, the Director
(Marketing) granted stay to the execution and operation of the
letter dated 9th April, 2021 conveying the decision of the Market
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Committee dated 6th February, 2021. By a further order dated
27th May, 2021, interim order was confirmed and continued till
the hearing of the appeal. However, on 28th October, 2021, the
Director (Marketing) vacated the interim order without providing
any opportunity of hearing to the petitioner. The petitioner was
thus constrained to approach this Court in Writ Petition
No.8270 of 2021 and Writ Petition No.8268 of 2021.
6. By an order dated 17th December, 2021 the writ petitions
were disposed by quashing and setting aside the impugned
order dated 28th October, 2021 and directing that the interim
order dated 22nd April, 2021, as confirmed by order dated 27 th
May, 2021, shall operate till the final disposal of the appeals by
the Director.
7. Eventually, by the impugned order, the Joint Director
(Marketing) was persuaded to dismiss the appeals holding inter
ali that the Manohar was only a lessee of Stall No.124 and could
not have bequeathed the same in favour of the petitioner
without prior permission of the Market Committee, the
petitioner had not disclosed to the Market Committee when the
licence was issued in favour of the petitioner that in a suit the
petitioner was directed to produce probate in respect of the
alleged Will of deceased Manohar, and since respondent Nos.1
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and 2 were the Class-I heirs of deceased Manohar and the
challenge to the Will propounded by the petitioner was
subjudice, the Market Committee was justified in cancelling the
licence granted in favour of the petitioner and granting the same
to respondent Nos.1 and 2.
8. The petitioner has thus again invoked the writ jurisdiction
of this Court.
9. Affidavits-in-reply are filed on behalf of respondent Nos.1
and 2 in both petitions.
10. I have heard Mr. Anturkar, the learned Senior Counsel for
the petitioner in both petitions, Mr. Wakankar, the learned
Counsel for respondent Nos.1 and 2 in Writ Petition No.1141 of
2022, Mr. Gaikwad, the learned Counsel for respondent Nos.1
and 2 in Writ Petition No.1120 of 2022, Mr. Patil, the learned
Counsel for respondent No.4 and Mr. Mali, the learned AGP for
the State/respondent Nos.3, 5 and 6 in both petitions. With the
assistance of the learned Counsel for the parties, I have perused
the material on record including the impugned orders.
11. At the outset, it is necessary to note that an issue of
tenability of the writ petitions in view of existence of an alternate
statutory remedy under Section 52B of the Act, 1963 was
raised. Maintainability of the petitions was assailed on the
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ground that an order passed by the Director (Marketing) is
expressly made appellable to the State Government under
Section 52B(1)(b) of the Act, 1963. In the face of an express
statutory remedy, according to the respondents, this Court
would not be justified in exercising the extraordinary writ
jurisdiction.
12. Mr. Anturkar would urge that the challenge to the
maintainability of the petition is not well conceived. According
to Mr. Anturkar the contention that there is an alternate
efficacious statutory remedy rests on an incorrect
understanding of the provisions contained in Section 52B of the
Act, 1963. Mr. Anturkar would urge that Sub-Section (3) of
Section 52B itself is a complete answer to the challenge to the
maintainability of the petitions.
13. In opposition to this, an endeavour was made on behalf of
the respondents to persuade the Court to hold that the order
passed by the Director (Marketing) in appeal is amenable to a
further appeal before the State Government.
14. In order to appreciate the aforesaid challenge to the
maintainability of the petitions, it may be necessary to have a
reference to the provisions contained in Sections 8, 9 and 52B of
the Act, 1963.
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15. Section 8 reads as under:
"8. Power to cancel or suspend licences. (1) Subject to the provision of sub-section (3), a Market Committee may, for reasons to be recorded in writing, suspend or cancel a licence-
(a) if licence has been obtained through wilful misrepresentation, or fraud;
(b) if the holder thereof or any servant or any one acting on his behalf with his express or implied permission, commits a breach of any of the terms or conditions of the licence;
(c) if the holder of the licence in combination with other holders of licences commits any act or abstains from carrying out his normal business in the market with the intention of wilfully obstructing, suspending or stopping the marketing of agricultural produce in the market area in consequence where the marketing of any produce has been obstructed, suspended or stopped;
(d) if the holder of the licence has been adjudged an insolvent, and has not obtained his discharge; or
(e) if the holder is convicted of any offence under this Act. [(1A) Notwithstanding anything contained in sub-section (1), but subject to the provisions of sub-section (3), the Chairman and Secretary of a Market Committee acting jointly may, for reasons to be recorded by them in writing, by order suspend a licence for a period not exceeding 15 days for any reason for which a Market Committee may suspend the licence under sub-section (1)]. (2) Notwithstanding anything contained in sub-section (1), but subject to the provisions of sub-section (3), the Director may, for reasons to be recorded in writing by order suspend or cancel any licence granted or renewed under this Chapter.
(3) No licence shall be suspended or cancelled under this section, unless the holder thereof, has been given a reasonable opportunity to show cause against such suspension or cancellation."
16. Section 9 reads as under:
"9. Appeal Any person aggrieved by an order--
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(a) of the Market Committee refusing to grant or renew a licence, or cancelling a licence, or suspending any licence may, within thirty days from the date on which the order is communicated to him, appeal to the Director;
(b) of the Director refusing to grant or cancelling or suspending a licence may, within the like number of days, appeal to the State Government.
The Director or, as the case may be, the State Government shall, on such appeal, make such order as is deemed just and proper.
Provided that, before dismissing an appeal, the Director or as the case may be, the State Government, shall give such person a reasonable opportunity of being heard, and record in writing the reasons for such dismissal."
17. Section 52B reads as under:
"[52B. Appeal.
(1) Save as otherwise provided elsewhere in this Act, any person aggrieved by a decision taken or order passed under any of the provisions of this Act may prefer an appeal-
(a) to the Director where such decision is taken or order is passed by the Market Committee, its Chairman, Vice-Chairman, Secretary or any other officer empowered to exercise the powers of the Director,
(b) to the State Government, where such decision is taken or order is passed by the Director, (2) An appeal under sub-section (1) shall be made within a period of thirty days from the date of the decision or order appealed against.
(3) The order passed in the appeal by the Director or the State Government, as the case may be, shall be final."
18. Section 9 provides for an appeal to the Director against an
order of the Market Committee refusing to grant or renew a
licence, or cancelling or suspending a licence and, if such an
order is passed by the Director, an appeal is provided under
sub-clause (b) to the State Government.
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19. Section 52B is in the nature of a residuary provision
providing for an appeal against a decision taken or order passed
under the provisions of the Act, 1963 to the Director, where
such decision is taken or order is passed by the Market
Committee and its office bearers and officials, and to the State
Government where such decision is taken or order is passed by
the Director. Sub-section (3) of Section 52B however declares
that the order passed in appeal by the Director or the State
Government, as the case may be, shall be final.
20. A conjoint reading of the provisions contained in Section 9
and Section 52B of the Act would indicate that Section 52B(1)
starts with a saving clause by using an expression, "save as
otherwise provided elsewhere in this Act". Evidently, on a plain
reading, it becomes abundantly clear that the right of appeal
conferred by Section 52B is subject to the provisions contained
in the Act, 1963. If an appeal is expressly provided by any other
provisions of the Act, 1963, as in the case of a decision to grant
or renew a licence, or cancel or suspend a licence under Section
9 of the Act, the resort to the residuary provisions of appeal
under Section 52B of the Act is impermissible.
21. The matter can be looked at from another perspective. The
provisions contained in Sub-section (3) of Section 52B can also
be construed as a provision which otherwise restricts the right
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of appeal conferred by Sub-section (1) of Section 52B. It ordains
that an order passed by the Director or the State Goverment in
appeal, shall be final. If the intention of the legislature was to
provide an avenue of second appeal against the order passed by
the Director in exercise of the appellate power under Section
9(b) or Section 52B(1)(b), the legislature would not have
conferred finality to the order passed by the Director in appeal.
22. A clear distinction is thus discernible in the availability of
remedy of appeal. If the order is passed by the Director
(Marketing) in exercise of original jurisdiction an appeal to the
State Government is statutorily provided for. However, where an
order is passed by the Director in exercise of the Appellate
power an element of finality is attached to such order. In
substance, the scheme of the Act, 1963, which emerges from a
conjoint reading of the provisions contained in Section 9 and
Section 52B of the Act, is to provide one appeal against the
order of granting or renewing a licence, or cancelling or
suspending the licence and no more.
23. I am therefore not persuaded to accede to the challenge to
the maintainability of the petition on the ground of existence of
a statutory remedy. Even otherwise, is it trite that the existence
of an alternate efficacious remedy is a self-imposed restriction.
In a given case, the High Court is not precluded from exercising
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the writ jurisdiction even when there is an alternate remedy.
Failure to adhere to fundamental principles of judicial process
and natural justice are the grounds on which the High Court
may exercise the writ jurisdiction despite an alternate remedy.
24. On the merits of the matter, Mr. Anturkar would urge that
both the Market Committee and the Director (Marketing) have
approached the issue from an incorrect perspective. In the
backdrop of uncontroverted facts that after the demise of
Manohar licence was granted in the name of the petitioner, after
obtaining legal opinion, and before cancelling the licence no
notice much less an effective opportunity of hearing was given to
the petitioner, the Director (Marketing) fell in error in not at all
adverting to the said ground specifically raised in the appeal-
memo, urged Mr. Anturkar. It was further submitted that the
insistence on obtaining a probate of the Will of the deceased
Manohar was also misplaced. The fact that in a distinct
proceeding the petitioner was directed by the Civil Court to
produce probate for the petitioner's impleadment as legal
representative of deceased Manohar in the said suit, could not
have been the basis for negativing the claim of the petitioner.
Mr. Anturkar would urge that the order passed by the Civil
Court in RCS No.400 of 2017 is otherwise not in consonance
with law and has been assailed in a miscellaneous appeal.
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25. In opposition to this Mr. Gaikwad, the learned Counsel for
respondent Nos.1 and 2, strenuously submitted that the
substance of the matter cannot be lost sight of. Under the
purported Will, as many as 52 properties of deceased Manohar
were sought to be bequeathed in favour of the petitioner
completely disinheriting respondent Nos.1 and 2, the wife and
the daughter of the deceased. Such a disposition is wholly
inconceivable and unconscionable. Since the Civil Court had
directed the petitioner to produce the probate of the Will and the
said order was binding on the authorities under the Act, 1963,
they were fully justified in cancelling the licence in favour of the
petitioner and granting the same in favour of respondent Nos.1
and 2, who are indisputably the Class-I heirs of the deceased,
urged Mr. Gaikwad.
26. Mr. Gaikwad further submitted that what was sought to
be bequeathed under the purported Will of the deceased was
Stall No.124. The deceased had no dispositive power over the
said Stall as the deceased was a mere lessee thereof. The
Director (Marketing) was, therefore, within his rights in
observing that the leasehold rights therein could not have been
transferred without the prior permission of the Market
Committee.
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27. The learned AGP and the learned Counsel for respondent
No.4 supported the impugned orders.
28. From the perusal of the impugned order it becomes
evident that the fact that the Civil Court had directed the
petitioner to produce a probate when the petitioner had sought
impleadment as the legal representative of deceased Manohar in
RCS No.400 of 2017, which was instituted by the deceased and
Arvind Bande, the brother of the deceased, against one
Chandrakant Bande, weighed with authorities. A copy of the
said order (Exhibit-E in Writ Petition No.1141 of 2022) indicates
that when the petitioner sought impleadment the learned Civil
Judge by an order dated 19th June, 2019 directed the petitioner
to produce probate in respect of the Will and ruled that,
thereafter, the Court would decide whether to allow the
petitioner to bring himself on record as the legal representative
of Manohar.
29. Mr. Anturkar submitted that the aforesaid order passed by
the Civil Court does not take into account the provisions
contained in Section 213(2) read with Section 57 of the Indian
Succession Act, 1925. As the Will was made beyond the
ordinary original civil jurisdiction of this Court and it relates to
immovable property also situate beyond the said limits, the
petitioner was legally not enjoined to obtain probate before
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establishing his rights on the strength of the Will of late
Manohar.
30. I am mindful of the fact that the legality and validity of the
order passed by the learned Civil Judge in RCS No.400 of 2017
is not being tested in this petition. However, requirement of the
probate, in law, cannot be said to be wholly irrelevant.
Indisputably, leasehold rights which were purportedly
bequeathed under the Will of late Manohar were in respect of
the property situated at Pune and the alleged Will was also
purportedly executed at Pune.
31. In the case of Clearnace Pais and Others vs. Union Bank
of India1 the Supreme Court enunciated that a combined
reading of Sections 213 and 57 of the Indian Succession Act,
1925 would show that where the parties to the Will are Hindus
or properties in dispute are not in territories falling under
Section 57(a) and (b), Sub-section (2) of Section 213 applies and
Sub-section (1) has no application. Consequently, a probate will
not be required to be obtained by a Hindu in respect of a Will
made outside those territories or regarding the immovable
properties outside those territories.
1AIR 2001 SCC 1151.
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32. This Court in the case of Bhagwanji Karsanbhai Rathod
vs. Sarajmal Anandraj Mehta2 has also enunciated the law in
respect of a Will pertaining to the properties at Pune, as under;
"8. On conjoint reading of the above provisions, it would appear that only Wills specified in Clause (a) and (b) of Section 57 of the Act would require the executor or legatee to obtain probate letters of Administration from the Court of competent jurisdiction so as to pursue the right arising under the Will to its logical end. This legal position is reinforced from the exposition of our High Court in Ahmed s/ o. Abdul Latis vs. Ghisia Hira Teli (AIR 1945 Nag 237) as well as Jyoti w.o. Jagdish Singhai vs. State of Maharashtra (1979 Mh LJ 308). Therefore, the first question that needs to be considered is; whether the subject Will is covered by Section 57, Clause (a) and (b) of the Act? As mentioned earlier, it is not in dispute that the suit property is situated at Pune and the Will was also executed at Pune. If that is so, it is not possible to countenance the submission that Section 57(a) and (b) of the Act would apply. Understood thus, it was not necessary for the petitioner to obtain probate so as to proceed with the execution proceedings."
33. There is a more fundamental issue about the decision
making process by the Market Committee. In exercise of the
writ jurisdiction, it is trite, the Court is more concerned with
the decision making process rather than the merits of the
decision.
34. Indisputably, post the demise of Manohar, the Market
Committee issued a licence to the petitioner on 27th September,
2018 to carry on the trade from Stall No.124. It is
incontrovertible that the licence granted in favour of the
petitioner was renewed for the period 2021 to 2023. Respondent
Nos.1 and 2 made an application for revocation of the licence
2 AIR2003 Bombay 387.
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granted in favour of the petitioner and, instead sought grant of
licence to them. In the view of the said application, the Market
Committee by its resolution dated 6th February, 2021 resolved to
grant licence to respondent Nos.1 and 2 in respect of Stall
No.124 and cancel the licence issued to the petitioner. A
communication dated 9th April, 2021 giving effect to the
aforesaid resolution followed, which was the subject matter of
Appeal No.30 of 2021 before the Director (Marketing).
35. It is pertinent to note that before cancelling the licence,
the Market Committee did not claim to have given any
opportunity of hearing to the petitioner. Neither the resolution
nor the impugned communication dated 9th April, 2021 advert to
the fact that an opportunity of hearing was given to the
petitioner. As noted above, sub-section (3) of Section 8 of the
Act, 1963 mandates that no licence shall be suspended or
cancelled under Section 8 unless the holder thereof, has been
given a reasonable opportunity to show cause against such
suspension or cancellation. In view of this peremptory nature of
the provision, the Market Committee could not have proceeded
to straightway cancel the licence granted to the petitioner sans
an opportunity of hearing.
36. An endeavour was made on behalf of the respondents to
wriggle out of the situation by canvassing a submission that the
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petitioner had obtained the licence by misrepresentation and
suppression of facts. Without delving into the factual aspects, it
would be suffice to note that the language of sub-section (3) of
Section 8 leaves no manner of doubt that even where a licence is
proposed to be suspended or cancelled on the ground of
misrepresentation, an opportunity of hearing is warranted. Any
other view would render the salutary safeguard of opportunity
of hearing nugatory as the authority cancelling or suspending
the liecence without giving opportunity to show cause would
endeavour to justify its action on one or the other ground.
37. It would be contextually relevant to note that in the appeal
before the Director (Marketing), the petitioner had taken a
specific ground that the Market Committee had cancelled the
licence without providing an opportunity of hearing (ground 'd').
It does not appear that the Director (Marketing) considered the
challenge from the said perspective.
38. The upshot of the aforesaid consideration is that the
decision of the Market Committee to cancel the licence was in
flagrant violation of the express statutory provision contained in
Section 8(3) of the Act, 1963 and principles of natural justice.
39. Resultantly, the impugned order as well as the decision of
the Market Committee under resolution dated 6th February,
2021, and communicated vide letter dated 9 th April, 2021,
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deserve to be quashed and set aside. As a necessary corollary,
the decision of the Market Committed to grant licence to
respondent Nos.1 and 2 also deserves to be quashed and set
aside. The matter is, therefore, required to remitted to the
Market Committee for afresh decision after providing an effective
opportunity of hearing to the parties.
40. In the context of the consequential directions, it is
expedient to note that this Court in the order dated 17 th
December, 2021 in Writ Petition No.8268 of 2021 and Writ
Petition No.8270 of 2021 had noted that there was a serious
dispute between the parties as regards the occupation and
possession of Stall No.124. The Court thus declined to delve into
the aspect as to who was in actual occupation and possession of
Stall No.124. The petitioner contends that despite the aforesaid
order dated 17th December, 2021, the petitioner has been
restrained from carrying trade from Stall No.124. In the
circumstances, I deem appropriate to direct that till the Market
Committee takes a fresh decision regarding the grant of licence
none of the parties shall be permitted to carry on the trade from
Stall No.124. Resultantly, only after the decision of the
Market Committee the successful party would be permitted to
carry on the trade from Stall No.124 on the basis of a valid
licence.
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41. Hence, the following order:
:ORDER:
(I) The petitions stand allowed in the following terms:
(a) The impugned common order dated 14th January,
2022 passed by the Joint Director (Marketing)
stands quashed and set aside.
(b) The decision of the Market Committee to cancel
the licence granted to the petitioner in respect of
Stall No.124 under Resolution dated 6 th
February, 2021, and vide communication dated
9th April, 2021 and the decision dated 23 rdApril,
2021 to grant the licence in respect of the said
stall to respondent Nos.1 and 2 also stand
quashed and set aside.
(c) The matter stands remitted to the Market
Committee for afresh decision after providing a
reasonable opportunity of hearing to the
petitioner and respondent Nos. 1 and 2.
(d) The Market Committee shall take a decision as
expeditiously as possible and preferably within a
period of two months from the date the parties
appear before the Market Committee.
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(e) The parties shall appear before the Market
Committee on 5th April, 2023.
(f) Till the Market Committee takes an appropriate
decision, none of the parties shall be permitted
to carry on the trade from Stall No.124.
(II) Parties shall bear their respective costs.
(III) Rule made absolute to the aforesaid extent.
(IV) In view of the disposal of the petitions, Interim
Applications do not survive and stand disposed.
[N. J. JAMADAR, J.]
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