IMPORTANT POINT
Locus standi and delay and laches - maintainability of writ petition.

Judgment :-

Dr. B.S. Chauhan, J.

1. This appeal has been preferred against the impugned judgment and order dated 2.5.2003, passed by the High Court of Judicature at Allahabad in Civil Misc. Writ Petition No. 749 of 2003, by way of which the High Court has allowed the writ petition quashing the order of the State Government by which the Public Distribution System (hereinafter called as ‘PDS’) through the Gram Panchayats had been withdrawn.

2. Facts and circumstances giving rise to this appeal are:

A. The PDS was formulated for urban/rural consumers with the objective of monitoring the supplies of food grains and other essential commodities, of securing their equitable distribution and availability at the fair price, and of stabilising the prices of the essential commodities in the open market. With these objectives in mind, various schemes were prepared to help the beneficiaries, such as Annapurna Anna Yojana, Antyodaya Ann Yojana, BPL, etc.

B. In order to achieve the aforesaid objectives, the Government of India, in exercise of its power under Section 5 of the Essential Commodities Act, 1955 (hereinafter referred to as the ‘EC Act’), issued Notification dated 9.6.1978 delegating the power to the State Governments to pass orders specifying certain conditions pertaining to the PDS.

C. In pursuance of the said instrumental delegation, the State Government passed the Uttar Pradesh Scheduled Commodities Distribution Order, 1990 (hereinafter called as ‘Order 1990’) on 3.7.1990. The said Government Order (in short G.O.) conferred the power on the District Magistrate or an authority designated by him to grant/cancel the licenses for Fair Price Shops.

D. In view of the 73rd Constitutional Amendment Act, w.e.f. 14.4.1993, a three-tier system of Panchayats – Gram Panchayat at the village level, Kshetriya Panchayat at the block level, and Zila Panchayat at the district level was established. In the State of U.P., the Gram Panchayat is governed by the U.P. Panchayat Rajya Act, 1947 (hereinafter called as ‘U.P. Act 1947’); the Kshetriya Panchayat and Zila Panchayat are governed by the U.P. Kshetriya Panchayats and Zila Panchayats Act, 1961 (hereinafter called as ‘Act 1961’). The said Acts were amended by U.P. Act No. 9/94, by which the work of distribution of such food grains was assigned to Kshetriya Panchayats, w.e.f. 22.4.1994.

E. The Government of U.P. issued an order dated 10.8.1999, conferring the power to allot and cancel the fair price shops in rural areas, with certain guidelines, on the Gram Panchayats. As there had been no proper distribution, and considering the complaints, the Government withdrew the order dated 10.8.1999 vide G.O. dated 13.1.2000 and reinforced the earlier policy dated 3.7.1990.

F. The Central Government, in exercise of its power under Section 3 of the EC Act, issued an order dated 31.8.2001, namely, Public Distribution System Control Order, 2001 (hereinafter referred as ‘Order 2001’) for maintaining supplies and securing availability and distribution of essential commodities under the PDS, and therein delegating all its powers in this regard to the State Governments.

G. In pursuance thereof, the State of U.P. also issued a G.O. dated 28.10.2001, designating the officers of the District level, viz., District Magistrate, Sub-Divisional Magistrate, District Supply Officer to ensure the proper supply and distribution of such commodities.

H. In view of the provisions of Article 243-G of the Constitution of India, 1950 (hereinafter called ‘Constitution’), the Government of U.P. issued G.O. dated 17.8.2002, providing for the implementation of the reservation policy in favour of persons belonging to Scheduled Castes/Scheduled Tribes/Other Backward Classes and further for horizontal reservation for women, handicapped persons, etc., and for the allotment of fair price shops in the rural areas to them under PDS.

I. Zila Parishad, Ghaziabad, Respondent No.1, filed the writ petition before the Allahabad High Court challenging the ord