The main legal principle established is that the power to grant fair price shop licenses in Rural Areas belongs exclusively to the Kshettra Panchayat, as per the legislative provisions of U. P. Kshettra Panchayats and Zila panchayats Adhiniyam, 1961 and U. P. Panchayat Raj Act.

( 1 ) HEARD learned Counsel for the petitioner, and learned Advocate General for the respondents.

( 2 ) THIS writ petition has been filed for quashing the present Public Distribution System of essential Commodities in the Rural Area of the State of U. P. being carried out under the G. O. , dated 13. 1. 2000, Annexure-1 to the writ petition read with G. O. , dated 3. 7. 90 Annexure-2. It has also been prayed that the Essential Commodities should be supplied for Public Distribution through the Kshetra Panchayat.

( 3 ) COUNTER and rejoinder-affidavits have been exchanged.

( 4 ) BY the G. O. dated 13. 1. 2000 power to grant the fair price shop licences was given to the district Magistrate. The question before us is whether the District Magistrate is the valid authority who can grant fair price shop licences in Rural Areas of U. P.

( 5 ) IN this connection we may refer to Section 32 of the U. P. Kshettra Panchayats and Zila panchayats Adhiniyam, 1961, which states : "every Kshettra Panchayat shall, within the Khand, exercise powers and perform the functions specified in Schedule-I. " item (xxviii) of Schedule-I of the Act states, that the Kshettra Panchayats Powers and functions includes, "public Distribution System" : "distribution of essential commodities. "

( 6 ) THUS, it is evident that the Public Distribution System and Distribution of Essential commodities is within the jurisdiction of the Kshettra Panchayat constituted under the aforesaid act.

( 7 ) WE may also refer to Item (xxviii) of Schedule-II of the U. P. Kshettra Panchayats and Zila panchayats Adhiniyam, 1961, which states, that the Zila Panchayats functions include: " (xxviii) Public Distribution System.-Planning and monitoring of distribution of rural commodities. "

( 8 ) IT may be mentioned that Section 15 (xxix) of the U. P. Panchayat Raj Act, as amended by U. P. Act No. 9 of 1994 mentions that one of the functions of the Gram Panchayat is : "public Distribution System.- (a) Promotion of public awareness with regard to the Distribution of Essential Commodities. (b) Monitoring the Public Distribution System. "

( 9 ) THUS, there are three legislative provisions which have to be examined carefully and harmoniously. The first is Item (xxviii) of Schedule 1 to the UP. Kshettra Panchayat and Zila panchayat Adhiniyam, 1961, the second is Item No. (xxviii) of Schedule II of the same Act, and the third is Section 15 (xxix) of the U. P. Panchayat Raj Act.

( 10 ) IN our opinion, a collective and harmonious interpretation of these provisions leads to the following result: distribution of Essential Commodities in Rural Areas is to be done by the Kshettra Panchayat, which power, in our opinion, includes the power of selection and appointment of fair price shop dealers and the suspension and cancellation of their licences or the grant of withholding of essential commodities to then. Thus, in our opinion, it is exclusively in the jurisdiction of the kshettra Panchayat to appoint fair price shop dealers in Rural Areas, and cancel/suspend the licences because the expression distribution of Essential Commodities is broad enough to include such powers. In I. B. B. L. and T. Merchants Association v. State of Bombay, AIR 1962 sc 486 (vide Para 20), it was observed that when the legislature gives a power than by necessary implication it give, the powers to do everything necessary for the exercise of such power (See also AIR 1970 SC 140 : AIR 1964 SC 743, etc. ).

( 11 ) IN our opinion, that can be the only logical interpretation of Item (xxviii) of Schedule-I of the U. P. Kshettra Panchayats and Zila Panchayats Adhiniyam, 1961, because the expression "distribution of Essential Commodities" is a very wide one and it would necessarily include implicitly all powers for Distribution of Essential Commodities to the public, and hence, it would include the power to appoint fair price shop dealers, and to cancel or suspend their licence.

( 12 ) AS regard the power of the Zila Parishad it