A Indore Bench of Madhya Pradesh High Court has held the fundamental right of a firm to run a business cannot be taken away without following due process of law.
The State Farmer Welfare and Agriculture Department cancelled a license of the petitioner firm based in Indore for violation of provisions of Seeds (Control) Order 1983.
The firm was engaged in processing and sale of certified crops seeds.
On 17.5.2016 the inspector of Farmer Welfare and Agriculture Department took samples of a particular batch of stock of certified Soybean seeds from the premises of firm.
The samples were sent for testing to the government laboratory at Gwalior, the same were rejected.
On basis of the government laboratory report the firm was restricted from selling the seeds, later the license was cancelled.
The firm challenged the order that cancelled its license.
On examining the documents the court found the copy of the report of Government Laboratory, Gwalior was not supplied to the firm thus it did not get opportunity to cross examine the analyst.
Besides the authorities did not considered the reply submitted by the petitioner towards the show cause notice.
Taking note of the facts, Justice Vivek Rusia said “the cancellation of license means deprivation of the petitioner to run his business which is a fundamental right of the petitioner”.
“The fundamental right of the petitioner cannot be taken away without following due process of law”, the court said.
The court allowed the petition.
Read the Order here.