An order altering a distributor’s supply arrangement must follow an effective hearing.

The petitioner, a Self-Help Group, supplied kerosene to 51 Government Fair Price Shops.

Following a complaint that it had refused to receive a tanker of kerosene on 22.04.2022, respondent No. 4 issued a communication on 25.04.2022 directing respondent No. 5 to supply kerosene directly to those shops.

The petitioner challenged the action, contending that it had received no notice or opportunity to respond and that it had sufficient stock available.

The State submitted that direct supply was arranged in the public interest to ensure uninterrupted availability of kerosene.

The Court considered the petitioner’s lack of an opportunity to be heard and respondent No. 6’s stated unwillingness to continue with the distributorship.

1. Whether the communication dated 25.04.2022 could stand when the petitioner had not been afforded an opportunity of hearing before it was issued.

2. Whether the matter should be remitted to the Collector for fresh consideration, taking account of respondent No. 6’s unwillingness to continue with the distributorship.

The Court applied the principles of natural justice, particularly the requirement to afford a person an effective opportunity of hearing before taking action affecting that person’s position.

It directed that the matter be reconsidered in accordance with law and that the competent authority issue a reasoned and speaking order after hearing the petitioner.

The judgment identifies no specific statute, regulation, or precedent as the basis for these directions.

The Court noted that the petitioner alleged it had not been heard before the challenged communication was issued and concluded that it had not been afforded due opportunity.

It also considered respondent No. 6’s statement that he was unwilling to continue with the distributorship.

In light of these circumstances, the Court held that the matter required fresh consideration by the Collector, rather than determination on the existing record.

The Collector was directed to consider the relevant circumstances, afford the petitioner a due and effective hearing, and pass a reasoned and speaking order within 60 days of receiving the order.

The interim order dated 12.05.2022 was to continue until the matter was decided by the competent authority.

The writ petition was disposed of.