The court upheld the classification in the Public Distribution System (Control) Order, justifying the exclusion of private individuals from running fair price shops due to historical malpractices, while emphasizing the need for equitable distribution of essential commodities.

1. All these writ petitions under Article 226 of the Constitution of India relate to the Chhattisgarh Public Distribution System (Control) Order, 2004 made under the Essential Commodities Act, 1955 were heard analogously and are being disposed of by this common order.

2. Under Section 3 of the Essential Commodities Act, 1955 (for short "the Act") the Central Government has been vested with the power to make orders providing for regulating or prohibiting the production, supply and distribution of essential commodity and trade and commerce therein if the Central Government is of the opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices. The Central Government delegated this power to the State Governments under Section 5 of the Act by an order dated 9th of June, 1978 in relation to food stuffs subject to such conditions as specified in the said order. On 23rd of June 2001 the State Government of Chhattisgarh made the Chhattisgarh (Khadya Padarth) Sarvajanik Nagrik Poorti Vitran Scheme, 2001 in exercise of such delegated power under of the Act for distribution of different food stuffs through fair price shops. Pursuant to said Scheme of 2001, the State Government entered into agreements with the petitioners and also issued licences in favour of the petitioners for running fair price shops at different places in the State of Chhattisgarh. On 31st of August, 2001 the Central Government made the Public Distribution System (Control) Order, 2001 under of the Act providing for distribution of food grains through fair price shops and provided therein that the State Government shall issue an order under of the Act for regulating the sale and distribution of essential commodities and shall issue the licences to the fair price shop owner under the said order laying down the duties and responsibilities of the fair price shop owners. Accordingly, the State Government made a fresh order under of the Act by a notification dated 23rd of December, 2004 called the Chhattisgarh Public Distribution System (Control) Order, 2004 (for short the Order 2004). Clause 9 (1) of the Order 2004 makes provisions regarding allocation of fair price shops in the State of Chhattisgarh and is extracted hereunder :
"9. Allocation of fair price shops
(1) Fair Price Shop run by Large Aadim Jati Multipurpose Co-operative Societies (LAMPS), Primary credit co-operative societies, forest protection committees, self help groups, Gram Panchayats and other co-operative societies shall be continued but not run by the private persons. Within six months from commencement of this Order, Fair Price Shops run by the private persons shall be cancelled and allotted to the specified agencies mentioned in sub-rules (3) and (4) of rule 9".
In accordance with provisions of Clause 9(1) of the Order 2004, quoted above, the licences issued to the petitioners are proposed to be cancelled and the fair price shops are proposed to be allotted to agencies specified in the said Order 2004. Aggrieved, the petitioners have challenged the provisions of the Order 2004 on different grounds and/or the orders of the authorities proposing to cancel the licences of the petitioners for running the fair price shops.

3. Mr. Prashant Jay