S.H.A.Raza, J. - (1.) AGGRIEVED against the suspension of the licence for purchase, sale or storage of sugar for sale under the U. P. Sugar Dealers Licensing Order, 1962, and to show cause as to why the same may not be cancelled and the security deposited in favour of the Government be not forfeited, the petitioner has approached this court by filing this writ petition.
(2.) AS only a short question is involved, with the consent of the learned counsel for the parties, we proceed to dispose of the writ petition finally. The main thrust of the argument of the learned counsel is that the licence was suspended due to the lodging of the first information report against him under section 3/7 of the Essential Commodities Act. It was further averred that the said order was passed without giving any opportunity of hearing to the petitioner and no enquiry has been pending against the petitioner for any contravention of the terms or conditions of the licence as mentioned in the U. P. Sugar Dealers Licensing Order, 1962 and thus the said suspension order is beyond the ambit of sub-clause (4) (a) of clause 7 of the U. P. Sugar Dealers Licensing Order, 1962. On 22-12-1989 the District Supply Officer, Unnao, inspected the shop of the petitioner and instead of the petitioner one Siddha Gopal Tiwari. claiming himself to be the uncle of the petitioner, was found selling the articles in the shop. The stock and the rate board was not upto-date. Similarly the entries in the stock register, regarding sugar, were only upto 22-11-1989. According to the stock register 45 quintal sugar was issued on 16-12-1989 but at the time of inspection according to the register only 1 quintal 36 killo sugar was sold. In the sale register signature of most of the card-holders were missing. The inspection of the stock register showed that 47 quintal 64 killo sugar was entered, thus 4 quintal sugar was found in excess in the stock register. A first information report was lodged on 22-12-1989, thereafter on the same day the impugned order was issued. Clause 11 of the Control Order which deals with the suspension, cancellation and renewal of the licence is reproduced below "11. Forfeiture of security, suspension and cancellation of %nd refusal to renew licence. The Licensing Authority may, for reasons to be recorded in writing, forfeit the security either in whole or in part, suspend or cancel any licence or refuse to renew a licence if it is satisfied that the licensee has contravened any provisions of this order of the conditions of the licence or any. direction issued thereunder Provided that the licensee shall be given a reasonable opportunity of submitting his explanation before forfeiture of security either in whole or a part or before a licence is cancelled or its renewal refused or it is suspended otherwise than by way of suspension pending enquiry; Provided further that no order of suspension pending inquiry shall extend beyond a period of two weeks; Provided also that it shall not be necessary to give an opportunity in respect of an alleged contravention which has led to the conviction of the licensee." A perusal of the aforesaid order indicates that the said order was passed against the petitioner only for the reason of the fact that a FIR was lodged against him. The suspension of the petitioner's licence is not during pendency of any enquiry. The suspension of the licence can certainly take place only if the person aggrieved has been given an opportunity and since no opportunity has been given to the petitioner the order contained in annexure-I suffers from manifest error of law.
(3.) UNDER the aforesaid clause a licence could be suspended only in two situations (i) suspension for contravening any provisions of the Control Order or condition of the licence or any direction, issued thereunder, this is a final order which is to be passed only after giving to the licensee a reasonable opportunity of being heard. In case for any contravention, the licensee has been convicted, then his licence can be suspended or cancelled without giving any opportunity of being heard in respect of the alleged contravention, (ii) Interim suspension pending inquiry this interim suspension can be passed only when inquiry against the licensee for contravening of the provisions of the Control Order, condition of the licence or the direction, has been initiated and is pending. However the interim suspension, pending enquiry, cannot extend beyond a period of two weeks." The order does not indicate that any inquiry is contemplated against the petitioner against the breach of the Control Order, condition of licence or the direction issued thereunder. The licence of the petitioner was suspended only on the ground that a FIR has been lodged against him. This order was passed without any opportunity to the petitioner.;