Facts
The Petitioner, a retail company, challenged a challan dated 27.03.2026 and a subsequent order dated 30.03.2026 cancelling its Trade License and sealing its business premises.
Source reference: p. 1, para. 2Following a joint inspection, the Respondents had issued a notice granting the Petitioner fifteen days to rectify deficiencies related to fire safety and hygiene.
Source reference: para. 2However, the authorities re-inspected the premises within two days and proceeded to seal the store, alleging insufficient progress.
Source reference: para. 2The Petitioner contended this was a highhanded action in violation of natural justice, while the Respondents maintained the action was necessary in the "larger interest of public" due to recent fire incidents in the city.
Source reference: para. 3, 4Issues
1. Whether the Respondents’ action of sealing the premises and cancelling the trade license before the expiry of the 15-day notice period was arbitrary and in violation of the principles of natural justice.
Source reference: para. 22. Whether the Petitioner could be granted interim relief to continue operations subject to an undertaking to cure the identified safety and hygiene deficiencies.
Source reference: para. 4, 6Law Applied
The Court balanced the administrative requirement of adhering to the Principles of Natural Justice, specifically the right to a reasonable period for compliance as stipulated in a notice.
Source reference: para. 2The State’s duty to ensure Public Safety under municipal and fire safety regulations.
Source reference: para. 4The Court exercised its discretionary power under Article 226 of the Constitution of India to grant conditional relief based on an undertaking, ensuring statutory compliance while preventing unnecessary loss of business and reputation.
Source reference: para. 6Reasoning
The Court observed the procedural discrepancy where a fifteen-day compliance window was effectively curtailed to two days by the Respondents.
Source reference: para. 2While the Petitioner highlighted the loss of reputation and business, the Respondents emphasized the urgency of fire safety in public spaces.
Source reference: para. 3, 4The Court did not adjudicate on the final merits of the cancellation but sought a pragmatic resolution. It noted the Respondents' willingness to reopen the premises if corrective measures were taken.
Source reference: para. 4Consequently, the Court determined that the interests of justice would be served by allowing the Petitioner to resume operations, provided a high-ranking officer of the company furnished a formal undertaking and Power of Attorney to rectify all deficiencies within a strict timeframe.
Source reference: para. 6Holding
The seal of the Petitioner’s premises shall be opened upon the filing of an undertaking by the Assistant Store Manager, supported by a Power of Attorney or Board Resolution, by 08.04.2026.
The Petitioner is directed to cure all deficiencies in fire safety and hygiene as per the impugned notice by 15.04.2026.
Source reference: para. 6The Respondents/Corporation are authorized to re-inspect the premises on the evening of 15.04.2026. If the work is found unsatisfactory, the Corporation is at liberty to take further coercive action in accordance with the law.
Source reference: para. 6Original Court PDF
Airplaza Retail Holdings Private LimitedvsThe State Of Madhya Pradesh
Click to open original judgment
Original judgment, available to read, download and summarize on LawLens.in