High Court of Bombay Allows Writ Petition Challenging Allotment of Additional Fair Price Shops Beyond Advertised Number. Revisional Authority Under Maharashtra Foodgrains Rationing Order, 1966 Cannot Grant More Shops Than Advertised, and Minimum/Maximum Unit Norms Mandate a Fresh Advertisement.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The petitioner, Shri Suryakant Govindrao Shinde, was one of the successful applicants for a fair price shop in an advertisement issued by the Controller of Rationing in 1996. He and Respondent No.4 (Shri Vechu Shripatsing Chavan) were allotted shops after their applications were found compliant. Respondents 5 and 6, aggrieved by their non-selection, filed revisions before the Minister for Food and Civil Supplies. The Minister, while upholding the original allotments, additionally directed that one shop each be granted to Respondents 5 and 6, citing the industrial nature of the area and potential population growth. Respondent No.4 later surrendered his shop to retain a kerosene licence. As of February 1999, the unit distribution was: petitioner 4959, Respondent No.5 1573, and Respondent No.6 1580, later revised to 5551, 3853 and 6009 respectively. The petitioner challenged the Minister's order in the Bombay High Court, contending that the grant of two additional shops was without jurisdiction because the original advertisement was for two shops only and the unit norms did not support three shops. The Court examined the Maharashtra Foodgrains Rationing Order, 1966, particularly clause 30 which confers revisional powers. It noted that a Government letter dated 7 May 1999 clarified that only one ration shop should be allotted under one item number, and any excess units required a fresh advertisement. A subsequent GR of 9 June 2000 prescribed minimum 3000 and maximum 8000 units per shop in the Mumbai-Thane rationing area and mandated that new shops could only be sanctioned after fresh notification. The Court considered two conflicting Division Bench decisions: an earlier one in Bali Co-operative Consumer Society Ltd. (1998) which held that revisional powers could not be used to allot a second shop not advertised, and a later one in Vajaram J. Choudhary (2001) which held clause 30 wide enough to sanction additional shops. The Court found that the Vajaram judgment had not considered the 1999 letter and 2000 GR which fundamentally altered the legal position. It ruled that after these resolutions, the revisional authority could not grant more shops than advertised. The judgment in Vajaram was declared no longer good law, and no reference to a full bench was necessary. The writ petition was allowed, and the Minister's order granting additional shops to Respondents 5 and 6 was quashed as without jurisdiction.

Headnote

A) Rationing Law - Revisional Powers - Clause 30, Maharashtra Foodgrains Rationing Order, 1966 - Scope of revisional powers - The revisional authority cannot grant more fair price shops than the number originally advertised and allotted by the primary authority; if the original authority could only allot one shop under the advertisement, the revisional authority cannot exceed that limit - The Controller of Rationing had allotted one shop each to the petitioner and Respondent No.4; on revision, the Minister granted additional shops to Respondents 5 and 6. The Court held that the revisional authority's action was without jurisdiction as the advertisement was for only two shops. (Paras 4-7)

B) Rationing Law - Allotment Norms - Government Resolution dated 7.5.1999 and 9.6.2000 - Minimum and maximum unit requirements - Only one shop can be allotted per item number; any additional shops require a fresh advertisement and must adhere to the minimum of 3000 units and maximum of 8000 units - The subsequent government resolutions made it clear that new shops cannot be sanctioned without a fresh advertisement and proper unit allocation. The earlier Division Bench judgment in Vajaram J. Choudhary, which had interpreted clause 30 to allow additional shops, was rendered without considering these resolutions and is no longer good law. (Paras 4-5, 7)

C) Precedent - Stare Decisis - Conflict between Division Bench decisions - When a later judgment is rendered without considering subsequent executive instructions that fundamentally alter the legal position, it need not be followed; a reference to a larger bench is unnecessary because the law has been clarified by the resolutions - The Court declined to refer the matter to a full bench, holding that the letter of 7.5.1999 and the GR of 9.6.2000 effectively overrule the interpretation in Vajaram, and thus the conflict was resolved. (Paras 6-7)

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Issue of Consideration

Whether the Revisional Authority under clause 30 of the Maharashtra Foodgrains Rationing Order, 1966 could exercise revisional powers to grant additional fair price shops beyond those advertised and allotted by the Rationing Officer, especially in light of the Government Resolutions dated 7.5.1999 and 9.6.2000, and in view of conflicting decisions of the Bombay High Court.

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Final Decision

The writ petition is allowed. The Court holds that the revisionary authority under clause 30 of the Maharashtra Foodgrains Rationing Order, 1966 cannot grant additional fair price shops beyond those advertised. The Government Resolution of 9.6.2000 and the letter of 7.5.1999 make it clear that only one shop can be allotted per item number and any new shop requires a fresh advertisement. The judgment in Vajaram J. Choudhary v. State of Maharashtra is no longer good law in light of these subsequent resolutions. The impugned order of the Minister granting additional shops to Respondents 5 and 6 is quashed as without jurisdiction.

Law Points

  • revisional powers under clause 30 of the Maharashtra Foodgrains Rationing Order
  • 1966 are limited to the number of shops originally advertised
  • only one ration shop can be allotted under one item number
  • any additional shops require a fresh advertisement
  • minimum 3000 units and maximum 8000 units must be adhered to
  • government resolutions of 7.5.1999 and 9.6.2000 override earlier judicial interpretations
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Case Details

2005 LawText (BOM) (03) 222

Writ Petition No.2246 of 1998

2005-03-22

F.I. Rebello, S.P. Kukday

2005:BHC-AS:5534-DB

P.A. Pol for the Petitioner, R.M. Patne (AGP) for Respondents 1-3, S.P. Kanuga with M.V. Aiyer instructed by Poonam Bhosale for Respondent No.5

Shri Suryakant Govindrao Shinde

State of Maharashtra, through Secretary, Food and Civil Supplies Department; Hon'ble Minister, Food and Civil Supplies Department; Controller of Rationing; Shri Vechu Shripatsing Chavan; Shri Dukhhi Patiram Chavan; Shri Ramraj Ramanihore Varma

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the order of the Minister (Revisional Authority) granting additional fair price shops beyond the number advertised.

Remedy Sought

The petitioner sought quashing of the revisional order dated Not mentioned that granted one shop each to Respondent Nos.5 and 6 in addition to the two shops originally advertised and allotted, and restoration of the original allotment.

Filing Reason

The Controller of Rationing had initially allotted one shop each to the petitioner and Respondent No.4 based on an advertisement for two shops. On revision by Respondents 5 and 6, the Minister not only confirmed the existing allotments but also granted additional shops to the revisionists, which the petitioner contended was without jurisdiction and contrary to the prevailing unit norms that required minimum 3000 units per shop.

Previous Decisions

The Controller of Rationing (Respondent No.3) after processing applications allotted shops to the petitioner and Respondent No.4. On revision, the Minister (Respondent No.2) maintained those allotments but additionally granted one shop each to Respondents 5 and 6. Respondent No.4 subsequently surrendered his shop to retain his kerosene licence, leaving three shops operational with adjusted units.

Issues

Whether the revisional authority under clause 30 of the Maharashtra Foodgrains Rationing Order, 1966 has the power to grant additional fair price shops beyond those originally advertised. Whether the subsequent Government Resolution dated 9.6.2000 and letter dated 7.5.1999 alter the legal framework for allotment of fair price shops, rendering earlier judicial interpretation in Vajaram J. Choudhary no longer good law. Whether, in view of conflicting Division Bench decisions, the matter should be referred to a larger Bench.

Submissions/Arguments

Petitioner contended that the Minister's order granting two additional shops was without jurisdiction because the original advertisement was only for two shops, and the unit position did not justify any additional shops as each shop required a minimum of 3000 units. Respondent Nos.1-3 filed an affidavit through the Deputy Controller of Rationing stating that the advertisement was for 350 rationing shops, the Controller had recommended only the petitioner and Respondent No.4, and that Respondent No.4's shop became unviable due to inadequate units, leading him to revert to his kerosene licence. Respondent Nos.5 and 6 did not file a reply but presumably relied on the wide language of clause 30 to support the revisional authority's power to grant additional relief.

Ratio Decidendi

Revisional authority under clause 30 of the Maharashtra Foodgrains Rationing Order, 1966 cannot exercise revision to grant additional fair price shops beyond the number advertised and allotted by the original authority when the law and government resolutions mandate that only one shop be allotted per item number and require fresh advertisement for new shops.

Judgment Excerpts

We are, however, inclined to accept the submission that though suo moto revisional powers could have been used by the Respondent No.2, to look into the complaints against the petitioner society, the same could not have been exercised for the allotment of another shop to the Respodnent No.4. The Revisional Authority exercising power of revision, does not have the power to grant additional shops other than which were advertised.

Procedural History

Pursuant to an advertisement dated 19.3.1996 for 350 rationing shops, 11 applications were received. The Controller of Rationing (Respondent No.3) on 25.11.1996 allotted one shop each to the petitioner and Respondent No.4, noting that Respondent No.4's allotment was subject to his surrendering his kerosene licence. Aggrieved, Respondents 5 and 6 filed revision applications before the Minister (Respondent No.2). The Minister, by order dated Not mentioned, maintained the original allotments but additionally ordered the grant of one shop each to Respondents 5 and 6. Respondent No.4 subsequently surrendered his ration shop to retain his kerosene licence. The petitioner then filed the present writ petition on Not mentioned.

Acts & Sections

  • Maharashtra Foodgrains Rationing Order, 1966: Clause 30
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