The Supreme Court of India, on September 28, held that a necessary party was a person in whose absence no effective decree could be passed by the Court.

Bench of Justices B. R. Gavai and C. T. Ravikumar heard an appeal filed against the decision of the Allahabad High Court whereby the fair price shop license of the respondent was restored.

The High Court had come to the conclusion that the cancellation of the fair price shop licence was done without following the full-fledged enquiry process.

The Court observed that, "it could thus be seen that this Court had held that even if a subsequent alottee does not have an independent right he/she still has a right to be heard and to make submissions defending the order of cancellation."

It was held that the appellant was a necessary party to the proceedings.

The impugned order of the High Court was quashed and set aside. The order cancelling the license was affirmed.