1975 (9) TMI 169 - SC - Indian Laws

Whether the power of the District Magistrate to revoke the licence under s. 12 can be for only any of the grounds mentioned in s. 9? Held that - The power under s. 12 is to pass the kind of order which might be passed under section 7 or 9. The reasons for which this power can he exercised are not restricted to those mentioned in section 7 or 9. The revisional power under s. 12 is not a limited one. It is as wide as that of the original authority. The considerations which the District Magistrate took into account in revoking the appellant s licence were the same as those which were before the Village Panchayat when it decided to grant the licence. The revising authority is entitled on the same material to take a view different from that of the authority whose order is revised. The order passed by the District Magistrate post-haste immediately he received the appellants reply without either giving him the copies asked for or at least telling him that the material already furnished was sufficient to enable him to make his representation and if he had ally further representation to make he could do so offends the principles of natural justice. We are aware that we are dealing with an appeal questioning the proceedings initiated under Article 226 of the Constitution where the power of the court is a limited one that is to say limited to cases where there is any error of law apparent on the face of the record. But the observance of the principles of natural justice is fundamental to the discharge of any quasi-judicial function. We therefore allow the appeal and set aside the order of the District Magistrate. Appeal allowed.

Summary

Issues:
- Application for license under the Andhra Pradesh (Andhra Area) Places of Public Resort Act, 1888
- Refusal of license by Executive Officer of the Panchayat
- Grant of license on appeal to the village Panchayat
- Issuance of show cause notice by Additional District Magistrate for license cancellation
- Grounds for revocation of license under the Act
- District Magistrate's power to pass orders under the Act
- Failure to observe principles of natural justice in license cancellation
- Applicability of natural justice principles in quasi-judicial orders

Detailed Analysis:
The appellant applied for a license under the Andhra Pradesh (Andhra Area) Places of Public Resort Act, 1888, for conducting games of skill and performances. Despite objections from various entities, the license was initially refused by the Executive Officer but later granted on appeal to the village Panchayat. Subsequently, a show cause notice was issued by the Additional District Magistrate for license cancellation based on certain grounds specified in the Act. The appellant requested copies of documents related to the show cause notice to provide a detailed explanation, emphasizing the importance of natural justice principles in the process.

The Andhra Pradesh (Andhra Area) Places of Public Resort Act empowers the District Magistrate to call for records, conduct inquiries, and pass orders regarding licenses. The Act specifies grounds for revocation or suspension of a license, none of which were found applicable in this case. The District Magistrate's authority to pass orders under the Act is not limited to the grounds mentioned in specific sections, allowing for a wider scope of decision-making based on the circumstances presented.

The central argument raised was the failure to adhere to principles of natural justice in the license cancellation process. The court emphasized that natural justice principles must be followed in quasi-judicial decisions, even if not explicitly mandated by the statute. The District Magistrate's hasty decision without providing requested documents or clarifications to the appellant was deemed a violation of natural justice. The court highlighted the importance of considering opinions from representative bodies, like the Village Panchayat, in decision-making processes and cautioned against disregarding such inputs without valid reasons.

In conclusion, the court allowed the appeal, setting aside the District Magistrate's order of license cancellation, emphasizing the fundamental nature of natural justice in quasi-judicial functions. The judgment underscored the need for fair procedures and considerations in administrative decisions, ensuring transparency and adherence to legal principles.