STATE OF U.P. Vs. ZILA PARISHAD GHAZIABAD
LAWS(SC)-2013-2-6
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on February 01,2013

STATE OF U.P. Appellant
VERSUS
Zila Parishad Ghaziabad Respondents

JUDGEMENT

- (1.) This appeal has been preferred against the impugned judgment and order dated 2.5.2003, passed by the High Court of Judicature at Allahabad in Civil Misc. Writ Petition No. 749 of 2003, by way of which the High Court has allowed the writ petition quashing the order of the State Government by which the Public Distribution System (hereinafter called as 'PDS') through the Gram Panchayats had been withdrawn.
(2.) Facts and circumstances giving rise to this appeal are: A. The PDS was formulated for urban/rural consumers with the objective of monitoring the supplies of food grains and other essential commodities, of securing their equitable distribution and availability at the fair price, and of stabilising the prices of the essential commodities in the open market. With these objectives in mind, various schemes were prepared to help the beneficiaries, such as Annapurna Anna Yojana, Antyodaya Ann Yojana, BPL, etc. B. In order to achieve the aforesaid objectives, the Government of India, in exercise of its power under Section 5 of the Essential Commodities Act, 1955 (hereinafter referred to as the 'EC Act'), issued Notification dated 9.6.1978 delegating the power to the State Governments to pass orders specifying certain conditions pertaining to the PDS. C. In pursuance of the said instrumental delegation, the State Government passed the Uttar Pradesh Scheduled Commodities Distribution Order, 1990 (hereinafter called as 'Order 1990') on 3.7.1990. The said Government Order (in short G.O.) conferred the power on the District Magistrate or an authority designated by him to grant/cancel the licenses for Fair Price Shops. D. In view of the 73rd Constitutional Amendment Act, w.e.f. 14.4.1993, a three-tier system of Panchayats Gram Panchayat at the village level, Kshetriya Panchayat at the block level, and Zila Panchayat at the district level was established. In the State of U.P., the Gram Panchayat is governed by the U.P. Panchayat Rajya Act, 1947 (hereinafter called as 'U.P. Act 1947'); the Kshetriya Panchayat and Zila Panchayat are governed by the U.P. Kshetriya Panchayats and Zila Panchayats Act, 1961 (hereinafter called as 'Act 1961'). The said Acts were amended by U.P. Act No. 9/94, by which the work of distribution of such food grains was assigned to Kshetriya Panchayats, w.e.f. 22.4.1994. E. The Government of U.P. issued an order dated 10.8.1999, conferring the power to allot and cancel the fair price shops in rural areas, with certain guidelines, on the Gram Panchayats. As there had been no proper distribution, and considering the complaints, the Government withdrew the order dated 10.8.1999 vide G.O. dated 13.1.2000 and reinforced the earlier policy dated 3.7.1990. F. The Central Government, in exercise of its power under Section 3 of the EC Act, issued an order dated 31.8.2001, namely, Public Distribution System Control Order, 2001 (hereinafter referred as 'Order 2001') for maintaining supplies and securing availability and distribution of essential commodities under the PDS, and therein delegating all its powers in this regard to the State Governments. G. In pursuance thereof, the State of U.P. also issued a G.O. dated 28.10.2001, designating the officers of the District level, viz., District Magistrate, Sub-Divisional Magistrate, District Supply Officer to ensure the proper supply and distribution of such commodities. H. In view of the provisions of Article 243-G of the Constitution of India, 1950 (hereinafter called 'Constitution'), the Government of U.P. issued G.O. dated 17.8.2002, providing for the implementation of the reservation policy in favour of persons belonging to Scheduled Castes/Scheduled Tribes/Other Backward Classes and further for horizontal reservation for women, handicapped persons, etc., and for the allotment of fair price shops in the rural areas to them under PDS. I. Zila Parishad, Ghaziabad, Respondent No.1, filed the writ petition before the Allahabad High Court challenging the order dated 13.1.2000, i.e., order of withdrawal of the distribution from the Gram Panchayats, on the ground that, in view of the provisions of Sections 32 and 33 of the Act 1961, PDS could only be assigned to the Kshetriya and Zila Panchayats. Furthermore, direction was sought to quash the existing public distribution system of essential commodities in rural areas under the impugned G.O. dated 13.1.2000, read with G.O. dated 3.7.1990. Direction was also sought for further mandamus to the State Government to confer the power to deal with the essential commodities to the Zila Panchayats for the purpose of distribution in rural areas with the co-operation of Kshetriya Panchayat and Gram Panchayat. The said writ petition was opposed by the State Government. However, it has been allowed vide impugned judgment and order. Hence, this appeal.
(3.) Before taking up the appeal on merit, it may be necessary for this Court to deal with the procedural requirement in filing the writ petition and appeal. In fact, in view of the instrumental delegation by the Central Government, the State Government had conferred the power to grant and cancel the licence of fair price shops to the Gaon Sabha, and it had never been conferred upon the Kshetriya Panchayat or Zila Panchayat. Power to deal with PDS by Gram Panchayat was withdrawn by the State of U.P. vide order dated 13.1.2000. Respondent, Zila Parishad filed writ petition for quashing of the order dated 13.1.2000, though by no stretch of the imagination the said respondent No.1 could claim itself to be an aggrieved party. In fact, it had no locus to challenge the said order of withdrawal dated 13.1.2000. The State of U.P. and a few District Officials were impleaded as respondent No.1 before the High Court. None of the Gram Panchayats was party to the said petition. The High Court reached its decision on the legal issues, without considering the locus standi of Zila Parishad, respondent No.1. The High Court came to the conclusion that the power of dealing with PDS could be conferred only on Kshetriya Panchayat. Neither Zila Panchayat nor the Gaon Sabha nor the District Collector could be assigned the said job. However, Respondent No.1, Zila Panchayat has not preferred any appeal against the impugned judgment and order. None of the Gram Panchayats which were aggrieved by the order of withdrawal dated 13.1.2000 had ever approached any court for any relief whatsoever.;


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