- (1.) R. A. Sharma, J. Petitioner holds a licence under the U. P. High Speed Diesel Oil and Light Diesel Oil (Maintenance of Supplies and Distribution) Order, 1981 (thereinafter referred to as the Control Order ). On 5-7-1987 petitioner's business premises were searched and about 580 Ltrs. diesel was found in excess of the stock entries. First Information Report about it has been lodged on 7-7-1987 and a crime case No. 122 of 1987 has been registered at the police station. The petitioner has filed a writ petition before this Court against the first information report, which is pending. Petitioner has also moved an application under Section 6- A of the Essential Commodities Act before the Additional District Magistrate for release of the seized diesel oil and this application of the petitioner has not yet been decided and is pending.
(2.) ON the basis of the aforesaid first information report the diesel licence of the petitioner has been suspended by the District Supply Officer, Mainpuri vide order dated 9-11-1987, which has been served on the petitioner on 29-8-1989 By means of this writ petition, the petitioner has challenged the aforesaid order of suspension. With the consent of the learned Counsel for the parties, we propose to dispose of the writ petition finally. A perusal of the suspension order shows that the petitioner's diesel licence has been suspended on the ground that on inspection about 580 Ltrs. diesel was found in excess of the stock, which has resulted i. e the lodging of the first information report with the police station. The licence of the petitioner has been suspended for indefinite period till the criminal case is decided by the Court. Clause 8 of the Control Order confers on the Prescribed Authority the powers of suspension and cancellation. This clause is quoted below: "8. Suspension or cancellation and refusal to renew licence.-The Licensing Authority may, for reasons to be recorded in writing, suspend or cancel any licence if it is satisfied that the licensee has contravened any provisions of this Order or the conditions of the licence or any direction issued there under: Provided that the licensee shall be given reasonable opportunity of sub mitting his explanation before his licence is cancelled or its renewal refused or suspended otherwise than by way of suspension pending inquiry: Provided further that no order of suspension pending inquiry shall extend beyond a period of three weeks".
(3.) UNDER the aforesaid clause a licence can be suspended only in the following two circumstances: (i) Suspension for contravening any provisions of the Control Order or condition of the licence or any direction issued there under-this is a final order, which is to be passed only after giving 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 pending. However, the interim suspension pending inquiry cannot extend beyond a period of three weeks. There is no inquiry pending against the petitioner for any contravention of the Control Order, condition of licence or the direction issued there under Licence of the petitioner has been cancelled only on the ground that a first information report has been lodged against the petitioner for keeping about 580 Ltrs. diesel oil in excess of stock and the suspension order has been directed to continue till the criminal case pertaining to excess diesel oil is decided by the Court. The suspension order has been passed without giving any notice or opportunity of being heard to the petitioner.;