Cancellation of PDS License on Dictation of Superior Authority and Without Independent Application of Mind Is Sustainable.

The petitioner, a Primary Agriculture Co-operative Credit Society (PACS), challenged the order dated 16.02.2023 passed by the Sub-Divisional Officer (SDO), Rajauli, Nawada. This order cancelled the petitioner’s Public Distribution System (PDS) license (No. 342/2017) following directions from the Commissioner, Magadh Division

The petitioner sought the restoration of the license and the resumption of essential supplies

Both parties conceded that the legal controversy was identical to a previously adjudicated matter involving another PACS

1. Whether the cancellation of the petitioner’s PDS license by the Sub-Divisional Officer at the direction of a superior authority was sustainable in law

2. Whether the petitioner is entitled to restoration of the license and supply based on the precedent set in Lodipur Panchayat PACS v. The State of Bihar

The court applied the principle of stare decisis and administrative fairness.

The court relied on the precedent established in Lodipur Panchayat PACS vs. The State of Bihar & Ors. (C.W.J.C. No. 15893 of 2025), which held that while a license may be restored to a Society, the specific individual responsible for irregularities found during an inspection must be barred from managing the shop.

The court noted that the issues involved in the present writ petition were no longer res integra (an untouched matter) as they were squarely covered by the decision in Lodipur Panchayat PACS.

By applying the logic of the cited precedent, the court found that the impugned order of cancellation dated 16.02.2023 was liable to be set aside.

The court reasoned that while the corporate entity (the PACS) should have its license restored to maintain public supply, administrative integrity must be preserved by ensuring that the person who was in charge during the discovery of irregularities does not resume operations.

Respondent No. 4 was directed to restore the petitioner's license and resume supplies within four weeks. The holding clarifies that the person running the shop at the time of inspection cannot continue; the Society must nominate a new individual to manage the PDS shop.

All pending interlocutory applications were disposed of accordingly.