Lodging Of FIR, Criminal Case Pendency No Ground For Cancellation Of Fair Price Shop License: Allahabad High Court

The Allahabad High Court has observed that the lodging of FIR, as well as pendency of a criminal case, cannot be a standalone ground for cancellation of license of fair price shop.

Essentially, the Bench of Justice Neeraj Tiwari was hearing the writ plea of one Jagdamba Prasad, who had moved the Court submitting that due to the registration of a criminal case against him, his license of fair price shop was canceled by the Sub Divisional Magistrate, Meja, Allahabad in October 2017.

Thereafter, the High Court stayed the suspension order in November 2017.

The petitioner contended before the Court that to date, neither any inquiry had been initiated nor any proceeding is pending against the petitioner, and in the aforesaid criminal case too, he has been enlarged on bail.

Significantly, the petitioner also contended that as per the Government Order of August 2002, allotment of fair price shop to a person against whom a criminal case is registered is prohibited.

However, it was argued that under the said Government order, there is no provision to cancel the license of a fair price shop in case of involvement in a criminal case after the license allotment.

Lastly, it was claimed that there is no allegation of misuse of food grains or black marketing of the same and the only ground of suspension of the license of fair price shop is pendency of criminal case against the petitioner.

At the outset, the court noted that in the matter of Anil Kumar Dubey Vs. State of U.P. and others; (Civil Misc. Writ Petition No. 16723 of 2010), the Allahabad High Court had held that mere pendency of criminal case and filing of charge-sheet cannot be a ground for cancellation of license of fair price shop until there is an order of conviction, therefore, suspension order is bad and liable to be set aside.

Against this backdrop, the Court observed that in the instant case, the license of fair price shop was canceled only on the ground of lodging of FIR as well as pendency of a criminal case.

"Apart from that there is no allegation with regard to black marketing or misuse of food-grains, therefore, this cannot be a ground for cancellation of license of fair price shop" the Court held while setting aside the order passed by Sub Divisional Magistrate and the writ petition was allowed.

Since the High Court had already stayed the effect and operation of the order of the SDM and the petitioner is running the fair price shop as of date, therefore, the Court added that no further order was required for reinstatement of license and fair price shop.

Case title - Jagdamba Prasad v. State Of U.P. And 4 Others

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