The main legal principle established in the judgment is that the State's largesse should be distributed strictly in view of Articles 14 and 19 of the Constitution of India, and the allotment of public property must adhere to principles of fairness, reasonableness, and public interest.

Rajiv Sharma, J.

Petitioner-Society (hereinafter referred to as ‘the Society’ for the sake of convenience) has assailed the allotment of fair price shop in favour of respondent No. 4 in Gram Panchayat Dain. The petitioner-Society is duly registered and has framed its bye-laws. Petitioner-Society is running a fair price shop and is catering Villages Matehar, Sanpur, Lahdu, Upper Lahdu, Tharked, Uled and Aima. The respondent No. 4 submitted an application for allotment of a fair price shop at village Tharkehar on 13.05.2011. His case was also recommended by M.L.A. on 27.07.2011. The application submitted by the petitioner on 13.05.2011 was incomplete, since all the particulars required to be given, were not furnished in the application. The meeting of the Public Distribution Committee was convened on 19.08.2011 to consider the case of respondent No. 4. The Public Distribution Committee has categorically held that since the respondent No. 4 was not fulfilling the criteria of distance, ration card and population, it decided to recommend the case of respondent No. 4 for relaxation. The public notice was issued inviting applications for opening a new fair price shop at Tharkehar on 02.09.2011. The last date of receipt of applications was 23.09.2011, but the Secretary of the Gram Panchayat, Dain forwarded the application of respondent No. 4 on 22.09.2011 to the concerned authority. Thereafter, the Director sent the case of respondent No. 4 for relaxation on 25.11.2011. The Minister concerned accorded the relaxation on 03.12.2011, which led to the issuance of notification, dated 17.12.2011. Thereafter, the fair price shop was allotted in favour of respondent No. 4.

2. Mr. Ajay Sharma, learned counsel for the petitioner has vehemently argued that the allotment of fair price shop in favour of respondent No. 4 is illegal, arbitrary and, thus, violative of Article 14 of the Constitution of India. He then argued that respondent No. 4 has not even submitted the application as per the guidelines laid down. He also contended that the case of respondent No. 4 has been recommended by the concerned M.L.A. on 27.07.2011. He also argued that no relaxation could be given in favour of respondent No. 4 without assigning reasons.

3. Mr. Vikas Rathore, learned Deputy Advocate General and Mr. Neel Kamal Sharma, learned counsel for respondent No. 4 have supported the allotment made in favour of respondent No. 4.

4. I have heard the learned counsel for the parties and gone through the pleadings and the records produced by the respondent-State carefully.

5. The State Government has framed guidelines for allotment of fair price shops on 05.08.2008. According to the guidelines, all the applications for opening of a new PDS shop are to be considered by the district level Public Distribution Committee headed by the Deputy Commissioner. Once the permission for opening of a new fair price shop has been accorded, the department is required to issue a notice which is to be given wide publicity by way of affixation at the Panchayat Ghar/Municipal Committee Office/Nagar Parishad Office. The notice is also required to be affixed in/outside the campus of a Government School within the area of proposed fair price shop. The same is also required to be affixed on other Community Buildings such as Mahila Mandal Bhawan/Yuvak Mandal Bhawan. Three weeks’ time is required to be given for submission of applications. Thereafter, the applications are required to be considered and approved by the District PDS Committee headed by the Deputy Commissioner of the concerned District. The first priority is to be given to the Cooperative Sector, within the Cooperative Sector, Cooperative Societies of Women and Ex-servicemen are to be given priority. The second priority is to be given to the Ex-servicemen/physically handicapped person/unemployed educated person with no family member in regular employment. The third priority is to be given to the H.P. State Civil Supplies Corporat