TMI Blog1970 (4) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... etected on inspection of their shop by the Assistant Commissioner of Food and Civil Supplies on April 24, 1967. On the following day the appellants were directed to hand over all their stocks of sugar and flour to the Bindki Co-operative Marketing Society. Representations against the order directing the appellants to deliver their stocks made to the District Magistrate, Fatehpur, were not even attended to, and the appellants were obliged to surrender their stocks of sugar and flour. By letter dated June 28, 1967, the appellants were informed that the District Magistrate, Fathpur, had cancelled their licences as dealers in sugar and flour. The appellants applied for a copy of the order, but it was not supplied. Against the order of the Dist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to. No attempt is made to disclose the source of the power and the necessity to exercise that power. By the action of the authorities, the appellants were deprived of their right to carry on business in sugar and flour without even an opportunity to explain the alleged irregularities. Their protests addressed to the District Magistrate were ignored; the District Magistrate cancelled their licences without disclosing any reasons, and the State Government rejected the statutory appeal also without recording any reasons. This series of actions and orders passed by the executive authorities require something more than a plea of ignorance of law on the part of the authorities to explain. The appellants were entitled at least to be told the rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and that implied that the aggrieved party must have an Opportunity to convince the State Government that the order passed by the District Magistrate was erroneous. That right could be effectively exercised if reasons be recorded by the District Magistrate and supplied to the aggrieved party. If the aggrieved party is not supplied the reasons, the right to appeal is an empty formality. From the materials on the record it cannot be determined as to who considered the appeal addressed to the State Government, and what was considered by the authority exercising power on behalf of the State Government. The practice of the executive authority dismissing statutory appeals against orders which prima facie seriously prejudice the rights of the ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. It must appear not merely that the authority entrusted with quasi-judicial authority has reached a conclusion on the problem before him : it must appear that he has reached a conclusion which is according to law and just, and for ensuring that end he must record the ultimate mental process leading from the dispute to its solution. Satisfactory decision of a disputed claim may be reached only if it be, supported by the most cogent reasons that appeal to the authority. Recording of reasons in support of a decision on a disputed claim by a quasi-judicial authority ensures that the decision is reached according to law and is not the result of caprice, whim or fancy or reached on grounds of policy or expediency. A party to the dispute is ordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdiction exercised by the appellate authority : it is not required to be expressly mentioned in the statute. There is nothing on the record which shows that the representations made by the appellants was even considered. The fact that cl. 7 of the Sugar Dealers' Licensing Order to which the High Court has referred does not "require the State Government to pass a reasoned order" is wholly irrelevant. The nature of the proceeding requires that State Government must give adequate reasons which disclose that an attempt was made to reach a conclusion according to law and just. Counsel appearing on behalf of the State has not attempted to support the reasons given by the High Court. He merely contended that there are in the fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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