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MUKESH KUMAR AGRAWAL versus STATE OF U.P. & ORS.

Citation: [2009] 11 S.C.R. 854 · Decided: 31-07-2009 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed

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Judgment (excerpt)

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1[2009] 11 S.C.R. 854 
MUKESH KUMAR AGRAWAL 
v. 
STATE OF U.P. & ORS. 
(Civil Appeal No. 4965 of 2009) 
JULY 31, 2009 
[S.B. SINHA AND CYRIAC JOSEPH, JJ.] 
Constitution of India, 1950: Article 226 - Writ petition 
Β· cannot be dismissed summarily when the a/legations made 
C therein make out a case fhat the order and/or action taken by 
the authorities was wholly without jurisdiction and/or in 
violation of the principles of natural justice - On facts, writ 
petition challenging the order of cancellation of licence - High 
court dismissed writ petition holding that the a/legations of 
D malice made therein were vague in character - Impugned 
order of High Court does not suffer from infirmity - Uttar 
Pradesh High Speed Diesel Oil and Light Diesel Oil 
(Maintenance of Supplies and Distribution) Order, 1981. 
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Appellant was a dealer in High Speed Diesel Oil and 
Light Diesel Oil. He was granted a licence for dealing in 
the said commodities in terms of Uttar Pradesh High 
Speed Diesel Oil and Light Diesel Oil (Maintenance of 
Supplies and Distribution) Order, 1981. The Authorities 
cancelled his licence by order dated 22.6.2002 for 
F violation of terms and conditions of licence. He filed writ 
petition. By interim order, stay of order dated 22.2.2002 
was granted. During pendency of writ petition filed by the 
appellant, raids were conducted in his business premises 
by Department of Weight and Measures and Department 
G of Food and Civil Supplies. 3178 liters of High Speed 
Diesel Oil was found in excess. Show cause notice was 
issued asking appellant as to why his licence be not 
cancelled. FIR was a'lso lodg1ed. Appellant filed writ 
petition for quashing FIR. High Court stayed the order of 
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MUKESH KUMAR AGRAWAL v. STATE OF U.P. & 
855 
ORS. 
his arrest. The District Supply Officer by his order dated 
9.1.2008 cancelled the licence of the appellant. 
Questioning the said order, appellant filed a writ petition 
on the premise that the allegations contained in the show 
cause notice were differ~nt from those made in the FIR 
insofar as the notice did not specify that any sale through 
unauthorized persons had taken place. The writ petition 
was dismissed by the High Court opining that the 
appellant has an alternative remedy. 
In appeal to this Court, it was contended for the 
appellant that High Court failed to take into consideration 
that the appellant's establishment was repeatedly Β·raided 
by way of political vengeance for which he had to move 
the High Court again and again and that the entire 
proceeding against him was mala fide having been 
initiated at the instance of the Minister who was a political 
rival as the appellant had fought an election against him. 
Dismissing the appeal, the Court 
HELD: 1. High Court by reason of the impugned 
judgment opined that although the Minister contested an 
election against the appellant in the years 2002 and 2007, 
the allegations of mala fide were vague in nature. It was 
furthermore opined by the High Court that the averments 
made in the writ application in regard to the malice of fact 
against the Minister were not supported by any material 
which would lead to a finding of malice against him. [Para 
6] [859-G-H; 860-A-B] 
2. Appellant indisputably was holder of a licence 
granted to him in terms of the provisions of the U.P. High 
Speed Diesel Oil and Light Diesel Oil (Maintenance of 
Supplies and Distribution) Order, 1981. Clause 16(1) of the 
1981 Order obligates the licensee to display a stock of 
price board at his business premises showing opening 
balance of High Speed Diesel Oil or Light Diesel Oil and 
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SUPREME COURT REPORTS 
[2009) 11 S.C.R. 
A the rate per liter as also the closing balance recorded at 
the end of the day. Clause 14 of the conditions of the 
licence mandates a licensee to maintain a stock register. 
The contention of the appellant is that he did not hold any 
stock of High Speed Diesel Oil in excess, as he had 
8 received 3000 liters of 'diesel at about 12:00 p.m. on 
8.11.2007, that is, before the raid was conducted. From a 
perusal of the show cause notice, however, it appears 
that the allegations against him was that he had stored 
8300.47 liters of diesel in the underground tank, whereas 
C according to the Tank Calibration Chart measuring 83 
centimeters, the amount of diesel oil stored therein was 
calculated at 7523.05 liters. Appellant in his writ 
application contended tha

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