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2025 Supreme(JK) 48

HIGH COURT OF JAMMU AND KASHMIR
VINOD CHATTERJI KOUL, J
FAYAZ AHMAD TANTRAY – Appellant
Versus
UNION TERRITORY OF J AND K AND ORS. (FOOD AND SUPPLIES DEPARTMENT) – Respondent
WP(C) 507 / 2020



Advocates:
Mr Arshid A. Wani, Mr Syed Musabi, Mr Zahid Qais Noor, Mr Gulzar A Bhat

The court upheld the policy allowing a new Fair Price Shop due to population growth, affirming that the petitioner could retain only 250 rationees as per guidelines.

Headnote:(A) Government Order no.127-FCS&CA of 2016 - Policy for opening of Fair Price Shops under Targeted Public Distribution (Control) Order 2015 - Petitioner sought to quash the order allowing a new Fair Price Shop in Kraloo Kund, arguing it violated policy guidelines regarding the number of rationees per shop. The respondents contended that population growth necessitated the new shop, and the approval process adhered to policy requirements. (Paras 1, 5, 9)

(B) Fair Price Shop Licensing - The court noted that while the petitioner could retain 250 rationees, the establishment of a new shop for additional rationees was permissible under the revised policy. The petitioner could not claim a right to retain all rationees. (Paras 11, 12)

Facts of the case:
The petitioner was licensed to run a Fair Price Shop since 2003 and contested the opening of a new shop in the same locality, citing policy guidelines that limit the number of shops based on the number of rationees.

Findings of Court:
The court found merit in the petitioner's concerns but clarified that the petitioner could only retain 250 rationees, with the remaining rationees being served by the new shop.

Issues: The main issues included whether the new Fair Price Shop violated existing policy guidelines and the rights of the petitioner regarding rationee retention.

Ratio Decidendi: The court ruled that the petitioner could retain a maximum of 250 rationees, and the establishment of a new Fair Price Shop was justified due to population growth and policy revisions.

Result: Petition disposed of.

JUDGMENT :

1. Petitioner prays quashing of Order no.39-FCS&CA/AD-Kgm of 2018 dated 20th March 2018 issued by respondents. He seeks to restrain respondents from issuing formal licence and supplying ration in pursuance of impugned order in favour of private respondent. Respondents are also sought to be directed to strictly comply with policy guidelines vis-à-vis opening of New Fair Price Shops under public distribution system.

2. Reply/objections have been filed by respondents.

3. I have heard learned counsel for parties and considered the matter.

4. Petitioner was given licence to run Fair Price Shop in the year 2003 with respect to the area of Kraloo Kund Village of District Kulgam vide Order no.400-DCA&PD of 2003 dated 24th October 2003. According to petitioner there is no feasibility to open New Fair Price Shop in the catchment area serviced by petitioner. Earlier, petitioner filed OWP no.1581/2016, to prohibit official respondents from opening New Fair Price Shop in the locality of Kraloo Kund, Kulgam. In that petition, status quo order dated 29th December 2016 was passed.

5. Learned counsel for petitioner states that impugned order is in violation of policy guidelines qua opening of New Fair Price Shops as the area in which petitioner provides services, viz. village Kraloo, consists of 305 beneficiaries and remaining beneficiaries are from another village Pachgam and under the policy guidelines new Fair Price Shop cannot be opened for Kraloo Kund Kulgam. According to learned counsel for petitioner, new Fair Price Shop can be opened for every 250 rationees, but existing fair price shop holder will retain more rationees if there is no feasibility of opening second Fair Price Shop, i.e., there can be upto 499 rationees with a Fair Price Shop, therefore, impugned order is against the policy guidelines.

6. On the other hand, learned counsel for respondents states that petitioner has been given licence way back in the year 2003 and since then there has been manifold increase in population, thus, there was a need to increase facility of public distribution more particularly in view of implementation of National Food Safety Act; the policy has been revised in order to achieve the desired objectives, but petitioner is trying to restrain respondents from increasing the distribution facility to the public by establishment of a fresh Fair Price Shop/Sale Centre, just to create monopoly in the area. According to him, establishment of new fair price shops is governed and regulated in terms of Government Order no.127-FCS&CA of 2016 dated 4th August 2016 and approval for opening new Fair Price Shop in a locality is granted only after fulfilling all conditions as laid down in the said order and after assessing the feasibility. Grant of licence in favour of private respondent has been approved by competent authority to establish Fair Price Shop at Kraloo Muminabad Devsat District Kulgam after selection process was conducted in accordance with Government Order no.127-FCS&CA of 2017 and approval was conveyed vie Order No.FCS&CA/ FPS/191/ 2017 dated 26th December 2017. It is also stated by him that impugned licence does not affect requisite number of 250 ration tickets allotted to petitioner as per policy. Feasibility Report of 2020 cannot be read and interpreted to mean a report of 2018, which petitioner has tried to do.

7. Counsel for private respondent no.5 would say that respondent no.5 has been given licence after fulfilment of policy guidelines. He states that petitioner cannot retain more than 250 rationees. Reference is being given to communication dated 19th December 2016, in which Tehsil Supply Officer, Circle Chowgam, has reported that village consists of 46 and 216 souls under AAY RTS, under BPL RTS 62 and 297 souls, PHH RTS 137 and 514 and NPHH RTS 142 and 537 souls, in total RTS 387 with 1564 souls and that petitioner cannot retain more than 250 rationees.

8. Impugned order dated 20th March 2018 reveals that approval has been given by Ad

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