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HC strikes down MMC order revoking Oppo outlet licence

CO did not take an independent decision, which was merely based on the Council resolution, observes Judge

| OCTOBER 20, 2017, 02:24 AM IST
HC strikes down MMC order  revoking Oppo outlet licence

 

the goan I network
MARGAO
In a major setback to the Margao Municipal Council, Cell phone maker Oppo is all set to start its sale and service operations in the commercial capital after the High Court set aside the Margao Municipal Council's order revoking the trade license, with Justice C V Bhadang observing that the Chief Officer did not take an independent decision and the revocation order was merely based on Council resolution.
"Primarily, it is for the Chief Officer to exercise the powers for grant or refuse or in respect of suspension or revocation of the license. In the present case, the Chief officer has not taken any independent decision and the impugned order is merely based on the resolution dated Aug0ust 31, 2017 passed by the Margao Municipal Council," Justice Bhadang observed.
"Bye-law NO 3 and 4 clearly show that it is the Chief Officer who is competent to grant or to refuse to grant the license applied for. The Chief Officer is obliged to record reasons why the license is refused.
Under bye-law No 33, the license is liable to be suspended or revoked if the license premises are so kept, or any process or operation in connection with it is so carried on as be in the opinion of the Chief Officer a source of nuisance or danger to life, health or property.
The order passed by the Chief Officer in this regard is subject to appeal before the Council as per bye-law no 27," the Judge observed.
Justice Bhadang further pointed out there was no show cause notice issued to Pace Tel Systems Pvt Ltd, a company, which has opened the Oppo's sale and service centre, nor any opportunity of hearing was granted to the company before revocation of the license.
"It can thus be seen that the resolution passed by the Municipal Council is clearly in a breach of the principles of natural justice. It is now well settled that the availability of an alternate remedy is not an absolute bar to the entertainment of the petition.
When there is a clear breach of principles of natural justice, this Court can interfere. Perusal of the resolution dated August 31, 2017 shows that it is not based on any of the grounds on which
the license can be revoked," Justice Bhadang observed while setting aside the Municipal order.
Margao Municipal Chief Officer Agnelo Fernandes had initially granted the trade license to set up the Oppo sale point in the city before the retail cell phone operators from the commercial capital and rest of the state knocked the doors of the TCP
Minister Vijai Sardesai for revocation of the trade license on grounds that Oppo's sale point would adversely affect their business.
Based on the instructions of the TCP Minister, the Margao Municipal Council later adopted the resolution dated August 31, 2017 revoking the trade license issued to Oppo, with the Chief Officer only doing a formality by issuing an order revoking the trade license.

the ruling
Primarily, it is for the Chief Officer to exercise the powers for grant or refuse or in respect of suspension or revocation of the license
In the present case, the Chief officer has not taken any independent decision and the impugned order is merely based on the resolution dated August 31, 2017 passed by the Margao Municipal Council
No show cause notice issued to Pace Tel Systems Pvt Ltd, a company, which has opened the Oppo's sale and service centre
Also no opportunity of hearing was granted to the company before revocation of the license

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