R. A. Sharma, J. - (1.) A Division Bench of this Court has referred the following questions to the Full Bench for its decision: "1-Whether the agreements under which the petitioners have been authorised -to work as agents for the sale of scheduled commodities are statutory agreements in view of the fact that the agreements are executed in view of the statutory order notified by the State Government under Sec 3/7 of the Essential Commodities Act, i. e. U. P. Scheduled Commodities Distribution Order, 1990 ? 2-Whether the decision given in the case of Gopal Das Sahu v. State of U. P. 1991 ALJ 498, holding that even after the coming into force of the statutory Order, 1990, the termination or suspension of the agreement will not give a cause of action to the petitioner to challenge the said Order by means of a petition under Article 226 of the Constitution of India, as neither Article 14 of the Constitution nor the principles of natural Justice are attracted, requires reconsideration in view of the decision given by the Supreme Court in the case of Kumari Shrilekha Vidyarthi v. State of U. P. 1990 (2) UP LB EC 1174, and the Division Bench of this court in the case of M/s. Shyam Das Company v. State of U. P., AIR 1991 Alld. 129 ?"
(2.) THIS Full Bench has accordingly been constituted for deciding the aforesaid questions. In exercise of powers under Section 3 of the Essential Commodities Act, 1955 (here-in-after referred to as the Act) read with Notifications of the Government of India, the Government of U. P. has promulgated an order known as U. P. Scheduled Commodities Distribution Order, 1990 (here-in- after referred to as the 'Order). Clause 2 (c) of the Order defines 'agent' "as a person authorised to run a fair price shop". According to sub-clause (e) of Clause 2, 'fair price shop' "means a shop set up under these orders of the State Government for distribution of scheduled commodities." 'Scheduled Commodity' has been defined by sub-clause (m) as follows J "Scheduled Commodity" means a commodity specified in the scheduled appended to this order, products thereof and includes such other commodities which the State Government directs to be sold through a fair price shop". The commodities, which have been specified in the schedule are wheat, rice pulses, sugar, edible oil, kerosene oil, soft coak and controlled cloth. Clauses 3 and 4, which provides for setting up and running of fair price shop are reproduced below :- "3. With a view to effecting fair distribution of Scheduled Commodities the State Government may issue directions to set up such number of fair price shop in an area as it deems fit. 4. (1) A fair price shop shall be run through such person and in such manner as the Collector subject to the direction of the State Government, may decide. (2) A person appointed to run a fair price shop under sub-clause (1) shall operate it as the agent of the State Government." According to Clause 4 of the Order a fair price shop is required to be run through such person and in such manner as the Collector subject to the direction of the State Government, may decide and the person, who is authorised to run the fair price shop, shall operate it as the agent of the State Government. By a letter dated 3-7-1990 written by its Secretary, the Government has issued instructions to all the District Magistrates of the State laying down procedure for Selection of agents for rural areas and by clause 6 thereof the District Magistrate have been directed to get contracts executed in the prescribed proforma by the agents for running fair price shops. By Clause 11 of the said letter, provision has been made for appeal against the order of appointment, suspension, cancellation or non renewal of the contracts. In Clause 12, it has mentioned that the letter has been issued under clause 4 of the order. The copies of this letter have been sent for information and necessary action in accordance therewith to all the Additional District Magistrates, Civil Supply Officers, Commissioner, Food and Civil Supply, Divisional Commissioners and Regional Food Controllers. It has been stated by the learned counsel that similar instructions have been issued by the Government for establishment of fairprice shops in urban area.
(3.) PETITIONERS are the authorised ;agents of the Government of U. P. for running the fair price shops for sale of scheduled commodities and in connection therewith they have entered into contracts with the District Magistrates. Their contracts having been cancelled, suspended or supply of scheduled commodities having been (stopped by the State, they have filed these writ petitions for appropriate relief. A contract entered into a Govt. with another person in exercise of power conferred by Statute or Rules framed thereunder is a statutory contract. Such a contract is different from the ordinary contract, which is made by the Govt. or authority in exercise of their executive/administrative power.;