Miglani Kerosene Oil Depot v. Govt. of NCT of Delhi & Ors

G.S. SISTANI, J. JANUARY 08, 2014 'ssn'

* IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 8606/2007 & CM No.16222/2007 % Judgment delivered on 08.01.2014 MIGLANI KEROSENE OIL DEPOT ..... Petitioner Through: Mr.R.P. Luthra, Advocate versus GOVT. OF NCT OF DELHI & ORS ..... Respondent Through: Mr.S.D. Salwan and Mr.Latika Dutta, Advs CORAM :- HON'BLE MR. JUSTICE G.S. SISTANI G.S.SISTANI (ORAL) 1. Rule. With the consent of counsel for the parties, present petition is set down for final hearing. Necessary facts for disposal of this petition are that the petitioner, M/s.Miglani Kerosene Oil Depot was issued a licence No.2302/81 for distribution of kerosene oil. The said Kerosene Oil Depot was being run from the premises bearing No.50 Mansarover Park, Shahdara, Delhi. The petitioner firm is a licence holder for distribution of kerosene oil since 1981. The proprietor of the petitioner firm (Kanhaiya Lal) died on 02.10.2003 and upon his death, his wife Smt. Leela Kumari (the present proprietor of the petitioner firm) stepped into his shoes and carried on the affairs of M/s.Miglani Kerosene Oil Depot, after taking prior permission from respondent. The necessary amendments were also carried out in the official record of the respondents to this effect. In support of this, counsel for the petitioner has relied upon the office order dated 30.12.2003 bearing No.FAC/NE/F & S/2003/5281 by which the licence was transferred in the name of the present proprietor of the petitioner firm. 2. Counsel for the petitioner has contended that thereafter the licence of the petitioner firm was renewed from time to time, till 09.09.2008. A categorical submission has been made on behalf of the petitioner that since taking over of the depot by Smt.Leela Kumari, upon demise of her husband (Sh.Kanhaiya Lal), there has been no complaint whatsoever against the petitioner. However, in September, 2007, the present proprietor of the petitioner firm was served with a show cause notice, based on a conviction order passed against the husband of the present proprietor under the Essential Commodities Act, in the year 1994, as to why the licence of the petitioner be not cancelled. The present proprietor submitted reply to the show cause in which it was stated that at the time when the order of conviction was passed, the petitioner firm was under the control and supervision of Sh.Kanhaiya Lal (the deceased husband of the present proprietor) and she had no knowledge regarding conviction and fine. However, the respondents did not accept the explanation tendered by the present proprietor and by order dated 15.11.2007 respondent no.2 cancelled the licence of the petitioner with immediate effect, which led to filing of the present petition. 3. It is submitted by counsel for the petitioner that the impugned order suffers from unreasonableness, non-application of mind and is arbitrary. It is also submitted that similarly situated persons had approached this court by filing writ petition bearing No.4030/2006, which was allowed primarily on the ground that reliance on stale material could not be justified and action was arbitrary. It is thus contended that the cancellation proceedings based on order of conviction passed against the husband of the present proprietor in the year 1994, should have been initiated/ passed by the respondents within a reasonable period of time and not after a span of 13 years. 4. It is submitted by counsel for the petitioner that the action of the respondents of cancelling the licence of KOD after a long period is unjustified, in light of the fact that the respondents had allowed the change of the proprietor's name. Even otherwise after issuing a fresh licence in the name of the present proprietor, the respondent by their conduct have condoned the act of the deceased, Sh. Kanhaiya Lal. It is also submitted that no action survives against the present proprietor, as the same is stale and the act stands condoned in light of the fact that the show cause notice was issued after a gap of more than