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2008 Supreme(Gau) 286

GAUHATI HIGH COURT
H.N.Sarma, J.
Barpeta Mahakuma Sarkarisulav Mullyar Dokanisantha -Appellant
Versus
State of Assam and Ors. -Resopndent
W.P.(C) No. 844 of 2007
Decided On : 11-04-2008

Advocates Appeared:
A.M.Mazumdar, S.Sarma

The issuance of fair price shop licenses is for the public interest and to ensure the availability of essential commodities at fair prices.

Headnote:

Fair Price Shop Licence - Societies Registration Act, 1860 - Assam Public Distribution of Articles Order, 1982 - Section 3 of the Essential Commodities Act, 1955 - [1982, 3] - The court discussed the provisions of the Assam Public Distribution of Articles Order, 1982 and its relation to the Essential Commodities Act, 1955. It highlighted the objective of equitable distribution of essential commodities and fair pricing. The court emphasized that the issuance of fair price shop licenses is for the public interest and to ensure the availability of essential commodities at fair prices.

Fact of the Case:

The petitioner, a society registered under the Societies Registration Act, 1860, challenged the issuance of new fair price shop licenses, alleging violation of established norms and procedures, which affected their profit margins.

Finding of the Court:

The court found that the petitioner failed to demonstrate any violation of statutory provisions or arbitrariness by the authorities in issuing the licenses under the control order. As a result, the writ petition was dismissed.

Issues: Violation of established norms and procedures in the issuance of fair price shop licenses, impact on the profit margins of existing licensees.

Ratio Decidendi: The court held that the issuance of fair price shop licenses is for the public interest and to ensure the availability of essential commodities at fair prices. It emphasized that profit-making considerations cannot be the basis for issuing fresh licenses.

Final Decision: The writ petition failed and was dismissed, with no costs awarded.

1. The petitioner is a society registered under the Societies Registration Act, 1860 comprising holders of fair price shop licence under Barpeta Sub-division in the District of Barpeta represented by its Secretary.

2. The grievance of the petitioner-association as projected in this writ petition is that the civil supply authorities have undertaken the process to issue new fair price shop licence under the provision of Assam Public Distribution of Articles Order, 1982 in violation of the established norms and procedures thereby reducing their chances of profit in the business who are existing licensee of fair price shop.

3. I have heard Mr. S. Sarma learned counsel for the petitioner, learned State counsel appearing for the official respondents and Mr. A.M. Mazumdar, learned senior counsel appearing for the respondent Nos. 8 to 11.

4. The pleaded case of the petitioner-association, inter alia, is that they are the existing licensee under the Assam Public Distribution of Articles Order, 1982 by the civil supply authorities. There is a set of guidelines for issuing such hence and such guideline was issued by the Government on 17.6.1993 wherein it was provided that the fair price shops are opened on population basis. Normally, in rural areas a fair price shop covers around 800-1,000 people while in urban areas a population of 1,000-1,200 is covered. That apart, the topography of the area/natural barriers such as rivers, beels, etc., are also required to be taken into consideration irrespective of the population, while considering opening of a fair price shop. It is further pleaded that the Government vide W.T. Message dated 24.7.1996 directed not to issue fresh licence for fair price shops. The members of the petitioner-association were granted such licence on the basis of the population ratio in their respective area of operation and in some cases such population ratio is below the prescribed limit as fixed vide Circular dated 17.6.1993. Further contention of the petitioner is that the members of the association are finding difficult to run their fair price shop allotted in their favour as well as to make profit for their livelihood by running such fair price shop as the Deputy Commissioner, Barpeta has issued new fair price shop licence in favour of the private respondents. It is also contended that due to issuance of such fresh licence, the profit margin of the members of the petitioner-association has gone down and it is not permissible to issue fresh licnece without maintaining the population ratio. The petitioner, however, specifically pleaded that they do not have any objection in issuing fresh licence of fair price shop but such issue should be strictly in accordance with the guidelines mentioned above. Accordingly, challenging the allotment of fresh licence to the private respondents, the petitioner association have approached this court praying for issuance of a writ of certiorari.

5. A counter has been filed by the Deputy Commissioner, Barpeta, respondent No. 4. In the counter, it is pleaded that although the Government imposed restriction of fresh fair price shop licence/retail outlet and retailers/sub-dealer of SK oil vide letter dated 9.11.1998 but subsequently the Government has allowed the licensing authority to issue fair price shop licence under the Assam Public Distribution Articles Order, 1982 without prior approval from the State Government vide letter No. FSA.42/2003/72 dated 8.6.2005 and after fulfilment of the necessary criteria, appointment of fair price shop agent is made by the licensing authority. It is categorically contended in the counter that fresh issuance of licences have been issued in view of the greater interest of the consumer after fulfilment of the necessary criteria and complying with the necessary requirement and population criteria as fixed by the Government vide letter dated 18.8.1994.

6. The private respondent Nos. 8, 9, 10 and 11 have also filed their common counter wherein it is contended












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