IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE THIRTIETH DAY OF APRIL TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE C.V.NAGARJUNA REDDY WRIT PETITION NO : 9728 of 2008 Between: M/s. Someswara Gas Agency, I.O.C. (LPG) Dealer, Adoni, Kurnool District, rep by its Proprietor, B. Varaprasada Reddy. ..... PETITIONER AND 1 Director of Civil Supplies, Government of Andhra Pradesh, Civil Supplies Bhavan, Somajiguda, Hyderabad. 2 Joint Collector, O/o the District Collector, Kurnool District, Kurnool. 3 Revenue Divisional Officer, Adoni, Kurnool District. .....RESPONDENTS Counsel for the Petitioner: MR.A.RAMALINGESWARA RAO Counsel for the Respondents: GP FOR CIVIL SUPPLIES The Court made the following : Order: This Writ Petition is filed for a writ of Mandamus to set aside proceedings, dated 18-04-2008, passed by respondent No.2 to the extent he directed remittance of Rs.21 lakhs towards subsidy amount, said to have been misappropriated by the petitioner, including fine thereon. Heard Sri A.Ramalingeswara Rao, learned Counsel for the petitioner, and the learned Government Pleader for Civil Supplies for the respondents. At the hearing, the learned Counsel for the petitioner submitted that the above-mentioned condition is beyond the jurisdiction of respondent No.2 inasmuch as under Clause 28 of the Andhra Pradesh Petroleum Products (Licensing and Regulation of Supplies) Order, 1980 (for short ‘the 1980 Order’), he is empowered to cancel or suspend the license, and that he has no power to direct repayment of the alleged subsidy amount or to impose penalty thereon. I have carefully perused the provisions of the 1980 Order. Clause 28 of the said Order reads as under: ‘Contravention of conditions of licence/Registration Certificate/ supply card/Provisions of this Order:- (1) No holder of a licence or registration certificate or supply card issued under this order or his agent or servant or any other person, acting on his behalf shall contravene, attempt or abet the contravention of any of the provisions of this order or any of the conditions of the licence, registration certificate or any directions issued thereunder if any such holder or his agent or the servant or any person acting on his behalf contravenes any of the said terms or conditions may be cancelled or suspended for such period as may be specified by an order in writing by the licensing authority: Provided that no order shall be made under this clause unless the licensee or the holder of registration certificate has been given a reasonable opportunity for representing his case in writing and also having heard in person against the proposed cancellation; (2) pending action as in Sub-clause (i) above, the licensing authority for reasons to be recorded in writing order or interim suspension of the licence, registration certificate or supply card.’ The above-mentioned Clause does not empower respondent No.2 to direct the petitioner to refund the alleged subsidy amount along with the penalty. At the hearing, the learned Government Pleader for Civil Supplies has not brought to my notice any other condition of the 1980 Order or other statutory provision, under which respondent No.2 is empowered to pass such an order. In this view of the matter, Order dated 18-04- 2008, impugned in this Writ Petition, is set aside. Respondent No.2 is directed to pass an order afresh, taking into consideration the seriousness of the irregularities alleged to have been committed by the petitioner. The Writ Petition is, accordingly, allowed. _____________________ (C.V.NAGARJUNA REDDY, J) 30th April, 2008 LUR