PDS License Cannot Be Cancelled Solely for Failure to Lift Food Grains.

The petitioner, a Public Distribution System (PDS) license holder (License No. 123/2008), challenged the order dated 21.05.2014 issued by the Sub-Divisional Officer (SDO)-cum-Licensing Authority, Simri Bakhtiyarpur.

The order cancelled the petitioner’s license, allegedly without providing a copy of the enquiry report.

The petitioner sought the quashing of the cancellation and restoration of the license, arguing that the issue was already decided by the Court in previous litigation.

1. Whether the cancellation of a PDS license on the grounds of failure to lift grain is legally sustainable in light of departmental instructions and prior judicial precedents.

2. Whether the petitioner is entitled to the restoration of his PDS license following the setting aside of the cancellation order.

The court relied on the legal principle established in Mithileshwar Prasad Singh Vs. The State of Bihar and Ors. (C.W.J.C. No. 14902 of 2015).

This precedent clarifies that per the instructions of the Principal Secretary, Food and Consumer Protection Department, Government of Bihar, Licensing Authorities are prohibited from cancelling PDS licenses solely on account of a licensee's failure to lift grain.

The court noted that both the Petitioner and the Respondents concurred that the legal issue was res integra (already settled) by the decision in Mithileshwar Prasad Singh.

In that case, the Court held that even if a petitioner’s explanation for failing to lift grain was unsatisfactory to the authority, such failure cannot constitute a valid legal basis for cancellation due to specific departmental stay-orders on such actions.

Applying this to the present facts, the court found the 2014 cancellation order passed by the SDO, Simri Bakhtiyarpur, to be inconsistent with the settled law and departmental policy.

The court held that the cancellation of License No. 123/2008 was unsustainable and directed the Sub-Divisional Officer-cum-Licensing Authority, Bakhtiyarpur, to restore the petitioner to his original position.

All pending interlocutory applications were disposed of accordingly.