Delhi High Court
M/S Lochav Store vs Govt. Of Nct Of Delhi & Anr on 11 May, 2017
$~27
*IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment delivered on: 11.05.2017
+ W.P.(C) 3493/2017 & CM No.15289/2017 (stay)
M/S LOCHAV STORE ..... Petitioner
versus
GOVT. OF NCT OF DELHI & ANR ..... Respondents
Advocates who appeared in this case:
For the Petitioner : Mr Yogesh Kumar
For the Respondents: Mr. Vikas Shokeen, Advocate with
Mr. Kulbeer Singh, Inspector.
CORAM:-
HON'BLE MR JUSTICE SANJEEV SACHDEVA
JUDGMENT
11.05.2017
SANJEEV SACHDEVA, J. (ORAL)
1. The petitioner impugns Suspension-Cum-Show-Cause Notice
dated 13.07.2016, whereby the Fair Price Shop License issued to the
petitioner has been suspended.
2. The petitioner was issued an authorization to run a Fair Price
Shop (FPS) under the name and style of M/s. Lochav Store by the
Department of Food and Supplies, Government of NCT of Delhi.
3. The team deployed by the Enforcement Branch by order dated
30.12.2015 allegedly conducted a survey of the petitioner store and
reported discrepancies in the stock and non-supply of Specified Food
Articles.
4. Consequent to the survey, the impugned Suspension-Cum-
Show-Cause Notice dated 13.07.2016 was issued to the petitioner
thereby suspending FPS licence with immediate effect.
5. Learned counsel for the petitioner relies on a Circular dated
16.03.2004 issued by the respondents to contend that where a licence
is suspended, the maximum period of suspension can be three months
and all proceedings have to be concluded within the period of three
months.
6. Reliance is also placed on the Delhi Specified Article
(Regulation of Distribution) Order, 1981 to contend that period of
suspension cannot exceed three months.
7. Reliance is also placed on the judgment of this Court dated
10.04.2017 in WP(C) No.2963/17 titled M/s. Ajit Kapoor Store vs.
Govt. of NCT of Delhi & Anr., wherein in similar circumstances,
where the period of suspension has extended beyond three months, the
suspension-cum-show-cause notice has been set aside.
8. Learned counsel for the respondent submits that proceedings,
consequent to the show-cause notice, are continuing and a one-man
Inquiry Committee has been constituted, which is examining the case
of the petitioner.
9. The FPS license of the petitioner has been suspended with
immediate effect by Suspension-Cum-Show-Cause Notice dated
13.07.2016.
10. Relevant portion of the Circular dated 16.03.2004 relied upon
by the Petitioner reads as under:-
"******
In case where variation in stocks is more than 50
ltrs. in case of KOD and 50 kgs. In respect of FPS,
license can be suspended initially for a maximum
period of thee months by the Zonal Asstt.
Commissioner. However, in such cases quasi-
judicial proceedings will be completed at the level of
Zonal Add. Secretary-cum-Addl. Commissioner. In
those cases also the Asstt. Commissioner will issue
show-cause notice and obtain a reply of the FPS.
He/she will put up the case to his/her Zonal Addl.
Secretary/Addl. Commissioner with his/her
observation on the charges levelled in the show-
cause notice and reply filed by the FPS holder. The
Zonal Addl. Secretary-cum-Addl. Commissioner will
be required to finalise the proceedings within three
months."
(underlining supplied)
11. The circular dated 16.03.2004 stipulates that the licence can be
initially suspended for a maximum period of three months and
thereafter the proceedings have to be finalised within the period of
three months.
12. Clause 4 of the Delhi Specified Article (Regulation of
Distribution) Order, 1981 reads as under:-
4. Suspension/cancellation of authorization:
(1) The Administrator or the Deputy Commissioner
may at any time, whether at the request of the person to
whom authorization has been issued or on his
contravention or attempt to contravene any of the
provisions of the said order or directions issued
thereunder from time to time in this behalf or any term or
condition of the authorization or any directions issued
thereunder after making such enquiry as may be deemed
necessary without prejudice to any other action that may
be taken against him to amend, suspend or rescind the
authorization issued under this Order.
(2) Without prejudice to any action that may be taken
under sub-clause (l) in respect if any contravention of
any of the provisions made by or under this order, the
Deputy Commissioner may forfeit the whole or a part of
the security deposited under sub clause (2) thereupon the
authorized wholesaler or fair price shop holder whose
security been forfeited shall forthwith deposit an amount
equivalent to the forfeited so as to make the efficiency in
the amount of prescribed amount of security.
Provided that before passing any order under sub-clause
(1) or sub clause (2), the Deputy Commissioner shall
give a reasonable opportunity of being heard to the party
concerned.
Provided further that if the authorization is under
consideration for action and it is necessary to suspend it
pending enquiry the provisions contained in the
foregoing proviso shall not apply subject to the condition
that the period of such suspension shall not exceed three
months.
Provided further that a copy of every order made under
sub clause (1) or sub clause (2) shall be supplied to the
person concerned free of charge."
(Underlining supplied)
13. Reading of the clause 4 of the Order shows that it prescribes a
procedure for conducting an enquiry pending a proposed action of
suspension/cancellation. The proviso stipulates that where pending
consideration of any action, if there is any necessity to suspend the
authorisation, the suspension shall not exceed three months.
14. In view of the fact that the statutory period of three months has
already expired from the date of issuance of Show-Cause Notice-
Cum-Suspension Order dated 13.07.2016 on this technical ground
alone, the petitioner is entitled to relief of setting aside of the
suspension order. Reference may be had to the judgment in M/s. Ajit
Kapoor Store (Supra).
15. In view of the above, the suspension order dated 13.07.2016 is
set aside. It is clarified that this Court has not interdicted the show-
cause notice issued to the petitioner. The Respondents are at liberty to
conclude the proceedings consequent to the Show Cause Notice in
accordance with law.
16. The Writ Petition is accordingly allowed in the above terms.
17. Dasti under signatures of the Court Master.
SANJEEV SACHDEVA, J
MAY 11, 2017
st
