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TMI Blog1981 (9) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... nder cl. 3 of the order, is violative of Arts. 14 and 19 (1) (g) of the Constitution. To give a short resume. The Madhya Pradesh Foodstuffs (Distribution) Control order, 1960 (hereinafter called the 'Control order') was made by the State Government in exercise of the powers conferred by s. 3 of the Essential Commodities Act, 1955, read with Government of India, Ministry of Food and Agriculture (Depart of Food), order No. GSR 1088 dated November 15, 1958, to provide for distribution of foodstuffs at fair prices under a Government scheme The scheme of the Control order is that with a view to distributing food-stuffs at fair prices through fair price shops, the A Collector would, under the 'Government Scheme', appoint any person as a retail dealer in respect of foodstuffs under cl. 3 of the Control order. The Control order was designed to enable the State Government to distribute foodstuffs at fair prices through fair price shops. In 1977, as a matter of policy it was decided to appoint unemployed graduates as retail dealers of Government fair price shops. The whole system of distribution of foodstuffs at fair price shops to the consumers, however, collapsed due to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rban areas for the purpose of demarcation of areas, a Ward or a Mohalla is a unit and in rural areas, the Panchayat is a unit, (c) the location of fair price shop shall be, as far as possible, in the centre of such area, for meeting the requirements of the residence for which it is established. Clause 4 provided that the fair price shops would be allotted by the Sub Divisional officer and the allottee will have no legal ownership over the fair price shops. Then a set of guidelines was also issued for the purpose of regulating the manner of allotment of fair price shops. In making the allotment of fair price shops, cooperative societies were to be given top priority. In the event of a cooperative society in the area expressing its inability in writing to run a fair price shop, or if there was no such cooperative society in existence in such an area, the fair price shop may be allotted to others. The allotment of a fair price shop was to be made after publication of a notification inviting applications for allotment from the public The applications received were to be scruitinised on merits and the one who fulfilled the maximum qualifications shall be allotted the shop. Another set o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a monopoly in favour of cooperative societies. The preference given has a reasonable relation to the objects of the legislation set out in s. 3 of the Act. In the Sarkari Sasta, Anaj Vikreta Sangh case the impugned scheme was also challenged on various other grounds but the court negatived all the contentions raised and we need not refer to them as they are not really relevant for our purposes. Suffice it to say, the Court pointed out that the scheme had been framed by the State Government in exercise of its executive function under Art. 162 of the Constitution; that under the scheme the fair price shops were to be run by consumers' cooperative societies; that the scheme was framed by the State Government in public interest With a view to securing equitable distribution of foodgrains at fair prices to the consumers, that the rule of preference to cooperative societies does not create a monopoly in trade and is, therefore, not violative of the petitioners' fundamental rights under Arts. 14 and 19(1)(g) of the Constitution; and that no one had a fundamental right to be appointed a Government agent for running a fair price shop which was a matter of grant of privilege. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment by executive action under Art 162 of the Constitution with a view to ensuring equitable distribution of foodstuffs at fair prices. As already stated, the Court has found in the Sarkari Sasta Anaj Vikreta Sangh case (supra), the entire system of distribution of foodstuffs had collapsed and had become wholly unworkable due to flagrant violations of the provisions of the Control order by the retail dealers. The action of the State Government hl entrusting the distribution of foodstuffs to consumers' cooperative societies, though drastic, was an inevitable step taken in the interests of the general public. The State Government was not bound to give the fair price shops to the retail dealers under a Government scheme. The governmental action in giving preference to consumers' cooperative societies cannot be construed to be arbitrary, irrational or irrelevant. The impugned scheme does not confer arbitrary or uncanalised power on the Collector in the matter of grant or refusal of applications for appointment as agents for the purpose of running fair price shops. The scheme lays down detailed guidelines regulating the manner of grant or refusal of such applications. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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