Delhi High Court
Vendors Cooperative Society Ltd ... vs Union Of India And Ors on 12 May, 2021
$~9
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment delivered on: 12th May, 2021
+ W.P.(C) 5221/2021 & CM APPLN. 16024/2021
VENDORS COOPERATIVE SOCIETY LTD THROUGH ITS
SECRETARY RAJ KUMAR SHARMA & ANR. ..... Petitioners
versus
UNION OF INDIA AND ORS ..... Respondents
Advocates who appeared in this case:
For the Petitioner : Mr. Saurabh Kirpal, Senior Advocate with Mr. Sachindra Mohan,
Mr. Jayant Mohan and Mr. Dhawal Mohan, Advocates
For the Respondents: Mr. Vipin Chaudhary, Advocate
CORAM:-
HON'BLE MR JUSTICE SANJEEV SACHDEVA
JUDGMENT
SANJEEV SACHDEVA, J.
1. The hearing was conducted through video conferencing.
2. Petitioner impugns order dated 25.03.2021, communicated by letter
dated 26.03.2021, whereby the licence of the petitioner has been cancelled
with immediate effect.
3. Learned Senior Counsel for the petitioner submits that the ground of
cancellation is that petitioner has used old and fictitious money receipts. He
submits that no show cause notice was given to the petitioner to explain his
position and accordingly the order suffers from the defect of noncompliance
with the principle of audi alteram partem and petitioner has been
Signature Not Verified
Digitally Signed By:KUNAL
Signing Date:12.05.2021 21:09:33
This file is digitally signed by PS
to HMJ Sanjeev Sachdeva.
condemned unheard.
4. Learned Senior Counsel for the petitioner submits that despite
termination as on date petitioner is still continuing to provide services as per
the agreement.
5. Learned counsel appearing for the respondents submits that as per the
record, petitioner has used forged and fabricated receipts on account of
which a complaint has been lodged consequent to which an FIR has been
registered.
6. Learned counsel submits that the respondent-Railways was entitled in
terms of Clause 30 of the Agreement to terminate the licence on account of
forgery committed by the petitioner.
7. Learned counsel for the respondents, however, concedes that no show
cause notice was given to the petitioner prior to passing the impugned order
asking him to respond to the allegation of forgery.
8. Impugned order dated 25.03.2021 records that the main ground for
termination of the licence is the alleged use of old and fictitious money
receipts by the petitioner. Admittedly, no show cause notice or opportunity
of hearing has been given to the petitioner prior to passing of the impugned
order.
9. Without, in any manner, commenting upon the merits or the stand of
either party, in view of the fact that no show cause notice or opportunity of
hearing has been given to the petitioner prior to termination of the
agreement, the impugned order suffers from the defect of breach of the
Signature Not Verified
Digitally Signed By:KUNAL
Signing Date:12.05.2021 21:09:33
This file is digitally signed by PS
to HMJ Sanjeev Sachdeva.
cardinal principle of audi alteram partem, having denied petitioner an
opportunity of a hearing. Accordingly, the impugned order cannot be
sustained solely on the said ground.
10. In view of the above, order dated 25.03.2021 communicated by letter
dated 26.03.2021 is set aside.
11. This is, however, without prejudice to the rights of the respondents to
issue a fresh show cause notice to the petitioner and to pass a fresh order in
accordance with law.
12. In case, respondent issues a show cause notice to the petitioner,
petitioner shall file his reply to the show cause notice along with supporting
documents, if any, within a period of two weeks of the receipt of the show
case notice. Thereafter respondents would be at liberty to pass a fresh order
after given an opportunity of personal hearing, if so demanded by the
petitioner in his reply.
13. The petition is disposed of in the above terms.
14. All rights and contentions of the parties are reserved.
15. Copy of the order be uploaded on the High Court website and be also
forwarded to learned counsels through email by the Court Master.
SANJEEV SACHDEVA, J
MAY 12, 2021
'rs'
Signature Not Verified
Digitally Signed By:KUNAL
Signing Date:12.05.2021 21:09:33
This file is digitally signed by PS
to HMJ Sanjeev Sachdeva.
