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Issues: Whether suspension of the CHA licence could be permitted to continue indefinitely without appointment of an inquiry officer and completion of proceedings under the CHA Licensing Regulations, 2004.
Analysis: The suspension under Regulation 20 was founded on allegations of fraudulent export of prohibited narcotic drugs and was made after following the principles of natural justice. At the same time, the licence holder's livelihood and that of its employees depended on the continuation of the licence. Regulation 22 contemplates further inquiry, including appointment of an inquiry officer, before the question of revocation or continuation of the licence is finally determined. As no inquiry officer had been appointed even after several months, continued suspension without moving the matter forward was found unjustified.
Conclusion: The authorities were directed to appoint an inquiry officer promptly and complete the inquiry within a fixed time frame for deciding whether the CHA licence should be revoked or otherwise continued.
Ratio Decidendi: Suspension of a CHA licence cannot be allowed to subsist for an indefinite period without prompt initiation and completion of the inquiry required by the governing regulations.