Karnataka High Court
S Udaykumar vs Government Of Karnataka on 20 June, 2025
Author: S G Pandit
Bench: S G Pandit
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WA No.100661 of 2023
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 20TH DAY OF JUNE, 2025
PRESENT
THE HON'BLE MR. JUSTICE S G PANDIT
AND
THE HON'BLE MR. JUSTICE C.M. POONACHA
WRIT APPEAL NO.100661 OF 2023 (GM-PDS)
BETWEEN:
S. UDAYKUMAR
C/O. M. VENKATESHULU,
SECRETARY INDIRANAGAR CONSUMERS'
CO-OPERATIVE SOCIETY,
W.NO.25, R/O. H.NO.95A,
BANNAPPA BHAVI,
REDDY STREET, DIST. BALLARI-583101.
...APPELLANT
(BY SRI. JAYAKUMAR S.PATIL, SENIOR ADVOCATE FOR
SMT. SUNITHA P.KALASOOR, ADVOCATE)
AND:
1. GOVERNMENT OF KARNATAKA,
FOOD, CIVIL SUPPLIES AND
CONSUMER AFFAIRS DEPARTMENT,
BENGALURU,
REPRESENTED BY THE UNDER SECRETARY.
2. DEPARTMENT OF FOOD AND
CIVIL SUPPLIES,
VIKASA SOUDHA BUILDING,
BENGALURU,
REPRESENTED BY SECRETARY.
3. DEPARTMENT OF ESSENTIAL FOOD AND
CIVIL SUPPLIES,
CUNNINGHAM ROAD,
BENGALURU,
REPRESENTED BY COMMISSIONER.
4. DEPUTY COMMISSIONER OFFICE,
FOOD DEPARTMENT, DIST. BELLARI,
REPRESENTED BY DEPUTY COMMISSIONER.
...RESPONDENTS
(BY SRI V.S. KALASURMATH, AGA FOR R1 TO R4)
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WA No.100661 of 2023
THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF
KARNATAKA HIGH COURT ACT, 1961, PRAYING TO SET ASIDE THE
JUDGMENT AND ORDER DATED 09.11.2023 PASSED BY THE
LEARNED SINGLE JUDGE IN W.P. NO.101690/2014 IN THE INTEREST
OF JUSTICE AND EQUITY.
THIS WRIT APPEAL HAVING BEEN HEARD AND RESERVED ON
17.04.2025 AND COMING ON FOR PRONOUNCEMENT OF JUDGMENT
THIS DAY, C.M. POONACHA, J., DELIVERED THE FOLLOWING:
CORAM: THE HON'BLE MR. JUSTICE S G PANDIT
AND
THE HON'BLE MR. JUSTICE C.M. POONACHA
CAV JUDGMENT
(PER: THE HON'BLE MR. JUSTICE C.M. POONACHA) The present intra Court appeal is filed under Section 4 of the Karnataka High Court Act, 1961, calling in question the order dated 09.11.2023, passed in W.P No.101690/2014, whereunder, the learned Single Judge dismissed the writ petition.
2. The relevant facts in a nutshell leading to the present appeal are that the Indiranagar Consumers' Co- operative Society, Ballari1, was an allottee under the Karnataka Essential Commodities (Public Distribution System) Control Order, 19922, whereby, the Secretary of the Society was authorised to run a fair price depot/shop within its premises/godown at 25th ward, Indiranagar, Ballari, vide 1 Hereinafter referred to as the 'Society' 2 Hereinafter referred to as the 'Control Order' -3- WA No.100661 of 2023 authorization dated 22.02.1994 and accordingly the Society was carrying on the activities of distribution of food grains, in terms of the said authorisation, which was being renewed periodically from time to time. That during a visit on 06.02.2007 to the fair price shop of the Society by the officials of the office of the Deputy Commissioner, Food Department, Ballari, noticing that the shop was closed, a notice was issued under Clause 4(3) of the Control Order. Consequent to an enquiry conducted by the 4th respondent/Deputy Commissioner, vide order dated 12.11.2007, the 4th respondent/Deputy Commissioner upon recording a finding that there was an irregularity in the records pertaining to the stocks, as also unsatisfactory distribution of material and complaints having been alleged by 22 customers, ordered for revocation of the said licence. Being aggrieved, the Secretary of the Society, preferred an appeal under Section 17(1) of the Control Order to the 3rd respondent/Commissioner. Vide order dated 17.12.2011, the appeal was dismissed by the Commissioner and the order dated 12.11.2007 passed by the Deputy Commissioner was affirmed. Being aggrieved, the Secretary of the Society preferred an revision before the Ministry of Department of Food and Civil Supplies. Vide order dated -4- WA No.100661 of 2023 08.11.2013, the said revision was dismissed and the order of the Deputy Commissioner dated 12.11.2007 was affirmed. Being aggrieved, the Secretary of the petitioner preferred W.P.No.101690/2014.
3. Learned Single Judge, noticing that in the enquiry the authorities have come to a conclusion about the irregularities of the Society in maintaining proper accounts regarding stock, sale, bills and unsatisfactory distribution of material, dismissed the writ petition. Being aggrieved, the present appeal is filed.
4. Heard submissions of learned Senior Counsel Sri. Jayakumar S. Patil for learned counsel Smt. Sunitha P.Kalasoor for the appellant and learned AGA for respondents No.1 to 4.
5. In the above appeal, learned counsel for the appellant filed I.A.No.1 under Order XIII Rules 1 and 2 read with Section 151 of the Code of Civil Procedure, 19083, to permit the appellant to produce certain documents.
6. It is the vehement contention put forth on behalf of the appellant that the Society has been distributing food grains 3 Hereinafter referred to as the 'CPC' -5- WA No.100661 of 2023 to the cardholders from the year 1999 to 2007 when no complaint regarding any incident was made. It is further contended that by virtue of the interim protection granted during the period of litigation from 2007 till date, the food grains are being distributed by the society and no complaints are received regarding the same. It is contended that the incident complained of occurred due to the Secretary of the Society, who was aged 70 years suffering from certain medical ailments and apart from the said incident there has not been any other shortcoming in the functioning of the Society. Hence, the learned Senior Counsel seeks for allowing of the writ appeal and granting of the reliefs sought for.
7. Per contra, learned AGA justifies the orders passed by the official respondents as well as the learned Single Judge and contends that the Society having found to have violated the conditions on which authorization has been granted, the orders impugned are just and proper and ought not to be interfered with by this Court in the present appeal.
8. The submissions of both the learned counsels have been considered and the material on record has been perused. The question that arise for consideration is: -6- WA No.100661 of 2023
Whether the order of the learned Single Judge is liable to be interfered with and whether the reliefs sought for in the writ petition are required to be granted?
9. The relevant factual matrix is undisputed inasmuch as the Society was issued an authorization dated 22.3.1994 in Form B under Clause 4(3) of the Control Order and was authorized to open and run a fair price depot in the place/premises specified in the said authorization, consequent to which the society has been running the fair price depot. It is further a matter of record that consequent to the proceedings initiated under Clause 4(3) of the Control Order, the Deputy Commissioner, after conducting an enquiry, vide order dated 12.11.2007 cancelled the licence by noticing that the stock supplied on 31.1.2007 has not been mentioned in the stock book, that the stock books and bills are not properly maintained, the shop has not been opened on time, that there has been unsatisfactory distribution of material and there has been a complaint by 22 customers. The said order dated 12.11.2007 has been affirmed by the Commissioner vide order dated 17.12.2011 and by the Minister vide order dated 08.11.2013. The learned Single Judge noticing that the licence has been cancelled on various grounds as noticed above and -7- WA No.100661 of 2023 further recording that there is no reason to disbelieve the same, dismissed the writ petition.
10. It is pertinent to state here that the licence was granted in favour of the Society vide authorization dated 22.02.1994 and that the Society was running the fair price depot till the licence was cancelled vide order dated 12.11.2007. Thereafter, during the pendency of the litigation, by virtue of interim orders granted in the said proceedings by the authorities as also by this Court, the Society has continued to run the fair price shop.
11. This Court, vide order dated 10.03.2025 passed in the above writ appeal directed the 4th respondent -Deputy Commissioner to get the inspection of the society done through the Assistant Director of Food and Civil Supplies, Bellary, with regard to supply of food grains from 2007 onwards till date and directed the Society to furnish all the relevant documents for the said purpose and directed filing of a report before this Court.
12. The Assistant Director of Food and Civil Supplies, Bellary, vide affidavit dated 02.04.2025 has stated that the Society did not produce the records from 2007 up to 2017. -8- WA No.100661 of 2023 However, the records from 2017 were produced and it has been stated that due to the pendency of the litigation, the Society was permitted to distribute the food grains without there being any renewal of licence. The relevant details of the food grains regarding allotment of food grains lifted and distributed by the Society, month wise balance sheet as well as statements of the cardholders recorded on 18.03.2025 as also photographs taken have been produced along with the said affidavit.
13. The appellant, vide application filed under Order XIII Rules 1 and 2 of the CPC has sought to place on record the original records from 2007 available with the Society which have also been audited. The appellant has also produced a copy of the communication dated 25.03.2025 addressed by the Assistant Director to the Deputy Director and the office note dated 26.3.2025, which discloses that the Society has been supplying food grains and the relevant records have been maintained.
14. It is clear and forthcoming from the aforementioned that although by virtue of the order dated 12.11.2007 the licence of the Society has been cancelled by recording certain violations of the terms and conditions of allotment of the fair -9- WA No.100661 of 2023 price shop, the Society has been continuing to supply the food grains from 2007 up to date. The question as to whether there has been any wrong doing by the Society even in the supplies which have been continued to be made during the pendency of litigations being a finding of fact, the same ought not to be recorded for the first time before this Court in the present appeal.
15. Although the licence of the Society has been cancelled vide order dated 12.11.2007 due to various reasons mentioned therein, having regard to the fact that for nearly 20 years thereafter, the Society has been continuing to supply food grains and running the fair price shop and in view of the contention of the Society that the irregularities on the basis of which the licence has been cancelled were due to a Secretary of the Society being unwell, it is just and proper that the orders passed by the learned Single Judge as well as the authorities be set aside and the matter remanded to the Deputy Commissioner to enable him to conduct an enquiry afresh under Clause 4(3) of the Control Order with regard to the supplies made by the Society upto date after giving an opportunity to the appellant/Society to put forth its case and pass necessary orders in accordance with law.
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WA No.100661 of 2023
16. In view of the aforementioned, the question framed for consideration is answered partly in the affirmative.
17. Hence, the following:
ORDER i. The above appeal is allowed;
ii. The order dated 09.11.2023 passed in W.P.No.101690/2014 is set aside; iii. W.P.No.101690/2014 is partly allowed and the orders passed by the Minister dated 08.11.2013, the Commissioner dated 17.12.2011 and the Deputy Commissioner dated 12.11.2007 are set aside;
iv. The appellant/Society shall appear before the 4th respondent-Deputy Commissioner on 30.07.2025 without requiring any further notice being issued in this regard. The 4th respondent-Deputy Commissioner shall conduct an enquiry regarding the supply of food grains by the appellant/Society in compliance of the terms and conditions of the authorization dated 22.02.1994 from the date of the first show cause notice which was subject of the
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enquiry dated 12.11.2007 up to date and pass fresh orders in accordance with law;
v. All contentions of the parties are left open.
18. In view of the disposal of the main appeal, the pending applications stand disposed of.
Sd/-
(S G PANDIT) JUDGE Sd/-
(C.M. POONACHA) JUDGE Pmp/nd