IMPORTANT POINT
The court established that no vested rights exist for a fair price shop owner to retain all ration cardholders, allowing for new shops under the Control Order, 2016.

ORDER :

(PER: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ)

1. Petitioner is before this Court seeking for the following reliefs:

i. Declare that Notification No.AHARA/FPS.5.CR 173/2021-22 dated 29.09.2022 issued by the 3rd respondent under Karnataka Essential Commodities Act PDS (Control) Order, 2016 is arbitrary, violative of Art. 14 of the Constitution of India and hence, ultravires the Constitution of India.

ii. Issue a writ of certiorari or other such appropriate writ or orders or directions quashing the notification No.AHARA/FPS:5:CR 173/2021-22 dated 29.09.2022 at Annexure-B.

iii. Pass any appropriate writ order or direction as this Hon’ble court deem fit and proper in the facts and circumstances of the case and allow these writ petition in the interest of justice and equity.

2. The petitioner is the owner of a fair price shop having been granted a licence in the year 1998 to run such a shop in Mahatma Gandhi Grama Hitha Mandali. The petitioner claims that without the petitioner being issued any notice, the respondent No.3 has issued a Notification calling for new fair price depot in the same village vide Annexure-B and if the same were to proceed with, then the number of cardholders attached to the fair price shop of the petitioner would get reduced, thereby affecting the business of the petitioner. It is in that background that the petitioner is before this Court seeking for the aforesaid reliefs.

3. Learned counsel for the petitioner would submit that in terms of Rule 11 of the Karnataka Essential Commodities Public Distribution System (Control) Order, 2016 (hereinafter referred to as ‘Control Order, 2016’), unless a request has been made to the existing authorized fair price shop by the general citizen, no such transfer could be made and no such notification could have been issued and consequently, the ration card holders attached to the fair price shop of the petitioner cannot be transferred to any other third party.

4. His last submission is that if the number of cardholders are reduced, then the operation of the fair price shop would not be feasible.

5. He submits that it is proposed that the number of ration card holders who would be attached to the petitioner’s fair price shop is going to be reduced to 300 and as such, he submits that this is in contravention of sub-rule(2) of Rule 11 of Control Order, 2016. On this ground, he submits that the proposed transfer now to be made in favour of respondent No.4 is not sustainable and the relief sought for are required to be granted.

6. Learned High Court Government Pleader for respondent Nos.1 to 3 submits that a representation had been received from the villagers seeking for establishment of one more fair price shop. The number of cardholders attached to the shop of the petitioner according to her is more than 1200 and as such, a minimum of 500 cardholders will continue to remain attached to the fair price shop of the petitioner in compliance with sub-rule (2) of Rule 11 of the Control Order, 2016 and therefore, there would be no adverse impact on the operation of the petitioner.

7. Heard learned counsel for the petitioner and learned High Court Government Pleader for the respondent Nos.1 to3 and perused the papers.

8. Rule 11 of the Control Order, 2016 is reproduced hereunder for easy reference:

11. Assignment of Ration Card: (1) After sanctioning an authorization to run a fair price depot, the Authorized Authority shall assign to the fair price depot a certain number of ration cards belonging to persons residing near the fair price depot.

(2) The number of ration cards assigned to a fair price depot under sub-clause (1) shall not be less than 500 for a fair price depot in a rural area and not less than 800 for a fair price depot in an urban area:

Provided that the Authorized Authority may, for reasons to be recorded in writing, relax the limit upto 100 cards for a fair price depot in a rural area if the fair price depot is to serve the needs of an isolated settlement or layout where the