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2017 Supreme(Del) 3932

IN THE HIGH COURT OF DELHI AT NEW DELHI
VIBHU BAKHRU, J.
M/S KHEMWALS STORE & ORS - Petitioners
Versus
GOVERNMENT OF NCT OF DELHI & ORS - Respondents
W.P.(C) 7672 OF 2017 & CM No. 31726 OF 2017
Decided On : 02-11-2017

Advocates Appeared:
For the Petitioners:Mr Pardeep Gupta, Mr Parinav Gupta, Mr Mansi Gupta and Mr Moazzam Ali, Advocates.
For the Respondent:Mr Sanjoy Ghose, ASC, GNCTD with Ms Uri Mohan & Mr Rishabh Jetley, Advocate.

The main legal point established in the judgment is that the provisions of the Delhi Specified Articles (Regulations of Distribution) Order, 1981 must be followed in the selection process for granting FPS licences, and the Selection Committee's marking scheme and eligibility criteria must be evaluated in light of these provisions.

Headnote:

FPS Licence - Selection Process - Delhi Specified Articles (Regulations of Distribution) Order, 1981 - Summary of Acts and Sections: The court discussed the Delhi Specified Articles (Regulations of Distribution) Order, 1981 and the policy circular dated 27.07.2015 issued by respondent no.1. The court highlighted the provisions of Rule 3(6) of the 1981 Order, which provides factors to be considered while evaluating applications for FPS, and the eligibility criteria specified in the policy circular. The court emphasized that the 1981 Order provisions must be followed and evaluated the Selection Committee's marking scheme in light of these provisions.

Fact of the Case:

The petitioners applied for permanent Fair Price Shop (FPS) licences, but respondent nos. 4 to 6 were granted licences, which the petitioners challenged. The petitioners argued that the selection process did not follow the guidelines specified under the Delhi Specified Articles (Regulations of Distribution) Order, 1981.

Finding of the Court:

The court found that the Selection Committee's marking scheme and the eligibility criteria under the policy circular were evaluated in light of the provisions of the 1981 Order. The court directed respondent nos. 1 to 3 to specifically evaluate whether respondent nos. 4 to 6 have the financial standing/capacity to run the FPS shop.

Issues: The main issue was whether the selection process for granting FPS licences followed the guidelines specified under the Delhi Specified Articles (Regulations of Distribution) Order, 1981.

Ratio Decidendi: The court held that the provisions of the 1981 Order must be followed while selecting candidates for grant of a FPS licence. The court emphasized the need to evaluate the Selection Committee's marking scheme and eligibility criteria in light of the factors specified in the 1981 Order.

Final Decision: The court directed respondent nos. 1 to 3 to evaluate whether respondent nos. 4 to 6 have the financial standing/capacity to run the FPS shop. If respondent nos. 4 to 6 are found not to possess the requisite financial standing/capacity, steps would be taken to cancel their allotment and to allot the FPS to the next best candidate or by a fresh selection.

ORDER :

VIBHU BAKHRU, J.

1. The petitioners have filed the present petition, inter alia, praying as under:-

“WRIT of Certiorari be issued for quashing the impugned orders dated 22.08.2017/23.08.2017 regarding Selection/issue of FPS Licence no. 9385, 9387 & 9386 circle no.2 Burari in favour Respondent no.4 to 6 issued by Respondent no.3

Writ of mandamus be issued directing the Respondents to re-consider Petitioner No.1 to 3 for selection and allot the respective Fair Price Shop Licence no. 9385, 9386 & 9387 to the petitioners as per regulation 3 of Delhi specified articles (regulations of distribution) order 1981 and policy dated 27.07.2015 for issue of license of fair price shop in Delhi.”

2. In March, 2016, respondents issued an advertisement for allotment of Fair Price Shop (hereafter “FPS”) in Circle-02, Burari for different areas including in Nathu Pura, Mukhmelpur & Village Mukundpur. Pursuant to the aforesaid advertisement, petitioner no.1 applied for allotment of a FPS at Village Mukundpur petitioner no.2 applied for a FPS at Nathu Pura and petitioner no.3 applied for a FPS at Mukhmelpur as the petitioners were residing in those areas. It is stated that since there was an urgent requirement for catering to card holders in those areas, another advertisement was issued for granting temporary licences for FPSs. The petitioners also applied for temporary licences. The premises of the petitioners were inspected by the Food and Supply Officials and were found suitable. The petitioners were, accordingly, recommended for a temporary licences for FPS which was subsequently issued in their favour.

3. The officials once again inspected the premises of the petitioners for the purposes of recommending grant of a permanent FPS licences. The petitioners were, thereafter, called for an interview on 16.06.2017. It is stated that thirty two applications were received for allotment of permanent FPSs including that of the petitioners, out of which sixteen persons were called for an interview. Thereafter, respondent nos. 4 to 6 were granted licences for FPSs by allotment orders dated 22.08.2017/23.08.2017, which are impugned in the present petition.

4. The principal ground urged on behalf of the petitioners for assailing the allotment of FPS licences in favour of respondent nos. 4 to 6 is that respondent nos. 1 to 3 have not followed the guidelines as specified under Delhi Specified Articles (Regulations of Distribution) Order, 1981 (hereafter “the 1981 Order”).

5. Mr Sanjoy Ghose, learned counsel appearing for respondent nos. 1 to 3 submitted that respondent no.1 had issued a policy circular dated 27.07.2015, which specially provides for constitution of a high powered Selection Committee consisting of Senior Officers: (a) District Magistrate/Deputy Commissioner (Revenue) of the District - Chairperson.; (b) Assistant Commissioner, Food & Supply, other than concerned District in-charge, nominated by the Commissioner, F&S - Member; (c) Assistant Commissioner, Food & Supply, in-charge of the District in which the proposed applicant is located - Member Secretary. The process of examining and shortlisting the applicants by a Screening Committee was done away with and the Selection Committee is expressly empowered to formulate its own marking scheme. He submitted that in conformity with the aforesaid policy, the Selection Committee had formulated a marking scheme on the basis of which the candidates have been selected. He contended that the selection was done on an objective criteria and as per the policy and, therefore, cannot be faulted.

6. I have heard the learned counsel for the parties.

7. The 1981 Order was issued in exercise of the powers conferred under Section 3(2) (d) of The Essential Commodities Act, 1955 and, therefore, is a piece of subordinate legislation. Plainly, the provisions of the 1981 Order cannot be superseded by any policy circul











































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