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Issues:
1. Cancellation of licences by District Magistrate and State Government without providing reasons. 2. Lack of opportunity for the appellants to explain alleged irregularities and defend their case. 3. Failure to disclose materials considered by the authorities in the decision-making process. 4. Violation of the rule of law and denial of natural justice in the administrative proceedings. Detailed Analysis: 1. The judgment addresses the issue of the cancellation of licences held by the appellants without providing any reasons by the District Magistrate and the State Government. The court emphasizes that the appellants were entitled to know the reasons for the cancellation as it was a quasi-judicial decision that required justification based on charges and explanations provided. The lack of reasons rendered the right to appeal meaningless and violated the principles of natural justice. 2. Another key issue highlighted in the judgment is the denial of an opportunity for the appellants to explain the alleged irregularities and defend their case. The authorities' actions, including immediate orders to surrender stocks and ignoring objections raised by the appellants, were deemed arbitrary and against the rule of law. The appellants were deprived of their right to carry on business without a fair chance to address the accusations against them. 3. The judgment also criticizes the failure of the authorities to disclose the materials considered in the decision-making process. The court points out that the District Magistrate and the State Government did not provide any insight into the basis for their decisions, which hindered the appellants' ability to challenge the grounds on which their licences were revoked. This lack of transparency was seen as a violation of procedural fairness. 4. Lastly, the judgment underscores the broader issue of the violation of the rule of law and disregard for the rights of the appellants in the administrative proceedings. The court emphasizes the importance of recording reasons in quasi-judicial determinations to ensure decisions are reached according to law and not based on arbitrary actions or policy considerations. The authorities' dismissive approach to statutory appeals without providing reasons was deemed unacceptable and contrary to the principles of justice. In conclusion, the Supreme Court allowed the appeal, quashed the orders cancelling the licences of the appellants, and directed the State to bear the costs incurred by the appellants. The judgment serves as a reminder of the importance of upholding procedural fairness, providing reasons for administrative decisions, and respecting the rights of individuals in legal proceedings.
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