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Judgment
Heard Sri Vedula Srinivas, learned senior designated counsel representing Smt. Vedula Chitralekha, learned counsel appearing on behalf of the petitioners on record and learned Assistant Government Pleader for Agriculture appearing on behalf of the respondents.
The petitioners approached the Court seeking prayer as under:
"...to issue a Writ or order or direction, more particularly one in nature of Writ of Mandamus, to declare the action of the Respondents 3 and 4 in not permitting the Petitioners to conduct their business in Fertilizers, basing on the stop sale orders issued by the 4th Respondent, dt.16/06/2026 and 18/06/2026 respectively, as illegal, arbitrary and violative of Article 19(1)(g) of the Constitution of India and to issue a consequential direction to the Respondents 3 and 4 not to interfere with the business of the Petitioners in Fertilizers, in any manner basing on the stop sale orders of the 4th Respondent, dt.16/06/2026 and 18/06/2026 respectively.."
The case of the petitioners in brief as per the averments made in the affidavit filed by the petitioners in support of the present writ petition is as under:
The Petitioners are two registered Partnership Firms engaged in the fertilizer business, and hold valid fertilizer licenses bearing Nos.60/2019 and 106/2021 respectively. On 20.06.2026, the 3rd Respondent issued Show Cause Notice No.ADA (Siddipet)/Ferti/2026 alleging irregularities concerning non-acknowledgement of fertilizer stock purportedly supplied by the Petitioners to M/s. Sri Sai Shiva Fertilizers. The Petitioners submitted their explanation on 22.06.2026, denying the allegations and producing dispatch IDs, bills, waybills and other records evidencing the transactions. Earlier, stop-sale endorsements were issued by the 4th Respondent on 16.06.2026 and 18.06.2026 in respect of Petitioner Nos. 1 and 2 respectively under the proviso to Clause 28(2) of the Fertilizer (Control) Order, 1985. On 30.06.2026, the 1st Petitioner's licence was cancelled by the 2nd Respondent vide Proceedings No.Fert(1)36/2026 without prior notice or opportunity of hearing. The said cancellation was challenged in W.P.No.20900 of 2026 and was set aside on 06.07.2026, granting liberty to respondents to follow due process. As no further action was initiated within 21 days of the stop-sale notices, the Petitioners contend that they stood revoked. Despite this, petitioners had been prevented from selling their existing stocks, causing substantial loss. The 2nd Petitioner represented on 01.08.2026 seeking permission to resume business, but received no response. Hence, the petitioners had filed the present writ petition challenging the continued restraint as arbitrary and violative of Article 19(1)(g) of the Constitution.
4. PERUSED THE RECORD:
A) The written instructions, dated 13.08.2026 issued by the M.A.O. Siddipet Urban, Siddipet District in particular para Nos.8 & 9 are extracted hereunder:-
8.In reply to Para No.11, as per Clause 28(2) of FCO, 1985 the stop sale notices will be automatically revoked after completion of 21 days from the date of issuing such notice i/e 16.6.2026 to 6.07.2026 of petitioner 1 and 18.06.2026 to 8.07.2026 of petitioner 2. Hence, there is no prohibition/bar for the Petitioner No.1 from 6.07.2026 and petitioner 2 from 8.07.2026 to sell their stocks. And in response to the representation dated 01.08.2026 given by the Petitioner No.2 in written to R3, It is submitted that in consideration given by petitioner 2 sales were not stopped with respect to the said stocks mentioned by petitioner 1 and 2.
9.The other paragraphs are formal and no specific reply is required.
Note:
As per the clause 28(2) of FCO, 1985 the Stop Sale Notices issued to both the Petitioners No.1 and 2 were automatically revoked after completion of 21 days. R3 and R4 never stopped them from selling their stock after completion of said 21 days and both the petitioners are free to sell their stocks. Hence, the present WP is liable to disposed off.
B) The Proviso to Clause 28(2) of the Fertilizer Control Order, 1985 reads as under:-
"Provided also that the inspector shall give the stop sale notice in writing to the person whose stocks have been detained and initiate appropriate action as per the provisions of this order within a period of twenty one days. IF no action has been initiated by the Inspector within the said period of twenty one days from the date of issue of the said notice, the notice of stop sale shall be deemed to have been revoked."
DISCUSSION AND CONCLUSION:
Learned senior designated counsel appearing on behalf of the petitioners mainly put-forth the following submissions:-
The petitioners are two registered Partnership Firms engaged in the Fertilizers Business.
ii) The 4th respondent had directed the petitioners to stop the further sale of the Fertilizers lying with them in exercise of its power under Proviso to Clause 28(2) of the Fertilizer Control Order, 1985 through the stop sale endorsements.
iii) The said stop sale endorsement was issued in respect of the 1st petitioner on 16.06.2026 and in respect of the 2nd petitioner on 18.06.2026 by the 4th respondent.
iv) As per the Proviso to Clause 28(2) of the Fertilizer Control Order, 1985, the stop sale notices issued to the petitioners will be automatically revoked after completion of 21 days form the date of issuance of the said notices, if no action had been initiated by the Inspector within the said period of 21 days.
In the present case, though the said period expired in view of the Proviso to Clause 28(2) of the Fertilizer Control Order, 1985, the petitioners had not been permitted to sell the stock. vi) Therefore, the action of the respondents is contrary to Proviso to Clause 28(2) of the Fertilizer Control Order, 1985.
Based on the aforesaid submissions, learned senior designated counsel appearing on behalf of the petitioners contends that the petitioners are entitled to the relief as prayed for by the petitioners in the present writ petition.
Learned Assistant Government Pleader for Agriculture appearing on behalf of the respondents brings on record the written instructions, dated 13.08.2026 issued by the M.A.O. Siddipet Urban, Siddipet District, and placing reliance on the said written instructions, mainly puts-forth the following submissions:-
As per the Proviso to Clause 28(2) of the Fertilizer Control Order, 1985, the stop sale notices would be valid for a period of 21 days from the date of issuance of such stop sale notices i.e, 16.06.2026 to 06.07.2026 in respect of 1st petitioner and from 18.06.2026 to 08.07.2026 in respect of 2nd petitioner.
ii) Respondent Nos.3 & 4 never stopped the petitioners from selling their stock after completion of said 21 days as per the stop sale notices, dated 16.06.2026 and 18.06.2026 issued to the petitioner Nos.1 & 2 respectively.
iii) Both the petitioners are free to sell their stocks.
Based on the aforesaid submissions, learned Assistant Government Pleader for Agriculture appearing on behalf of the respondents contends that appropriate orders may be passed in the interest of justice.
Taking into consideration:-
The aforesaid facts and circumstances of the case,
The submissions made by the learned senior designated counsel appearing on behalf of the petitioners and learned Assistant Government Pleader for Forests appearing on behalf of the respondents.
The contents of the written instructions, dated 13.08.2026 issued by the M.A.O. Siddipet Urban, Siddipet District ( referred to and extracted above), which clearly indicate that petitioners are free to sell their stocks.
The Proviso to Clause 28(2) of the Fertilizer Control Order, 1985 (referred to and extracted above)
The discussion and conclusion as arrived at para Nos.5 to 7 of the present order.
The Writ Petition is disposed of directing the respondent Nos.3 & 4 not to interfere with the Fertilizer business of the petitioners, in any manner basing on the stop sale orders of the 4th respondent, dated 16.06.2026 and 18.06.2026 in respect of petitioner Nos.1 & 2 respectively, as stated in the written instructions placed before this Court, dated 13.08.2026 issued by the M.A.O. Siddipet Urban, Siddipet District ( referred to and extracted above) . There shall be no order as to costs.
Miscellaneous petitions, if any, pending in this Writ Petition, shall stand closed.