Cancellation of fertilizer authorization without prior notice or hearing violates Clause 31 of the Fertilizer (Control) Order.

The petitioner, a proprietary firm engaged in the sale of fertilizers, challenged the order dated 21.08.2025 passed by respondent No. 4, which canceled the petitioner’s fertilizer authorization letter.

The cancellation followed an inspection on 28.07.2025, where the proprietor was absent, and his parents—who were not conversant with statutory documentation—were unable to produce the required documents.

The petitioner appealed this decision, but the appellate authority affirmed the cancellation on 28.10.2025.

The petitioner approached the High Court contending that the orders were passed in gross violation of the principles of natural justice and statutory provisions.

1. Whether the cancellation of the fertilizer authorization letter was conducted in violation of the principles of natural justice and the mandatory procedure under Clause 31 of the Fertilizer (Control) Order, 1985.

2. Whether the appellate authority failed to consider the procedural irregularities in the original cancellation order.

Clause 31 of the Fertilizer (Control) Order, 1985, which mandates that a notified authority may only suspend, cancel, or debar a dealer after giving them a reasonable opportunity of being heard.

The principle that actions under this clause constitute quasi-judicial functions necessitating due application of mind and adherence to Article 14 of the Constitution of India regarding fairness and non-arbitrariness.

The court observed that Clause 31(1) of the Fertilizer (Control) Order, 1985, explicitly requires a hearing before an authorization is canceled because such actions entail "serious consequences".

In the instant case, it was admitted that no show-cause notice was issued and no opportunity of hearing was afforded to the petitioner prior to the order dated 21.08.2025.

The court reasoned that the failure to provide a hearing rendered the act per se illegal and a violation of Article 14 of the Constitution.

The court found that the appellate authority erred by affirming the order without addressing these foundational procedural lapses or the non-compliance with the statutory mandate of Clause 31.

The High Court quashed the cancellation order dated 21.08.2025 and the subsequent appellate orders dated 27.10.2025 and 28.10.2025. The matter was relegated to the concerned authorities to pass a fresh, speaking order after providing the petitioner a due opportunity of hearing within 45 days. The petition was allowed with no order as to costs.