Higher merit does not confer an indefeasible PDS licence right without satisfying residency requirements.

The petitioner applied for a Public Distribution System (PDS) licence under the Backward Class (Female) category for Village Begeya, District Gaya.

She was placed second in the merit list, while Respondent No. 7 was placed fourth; the candidate placed third withdrew from the process.

The petitioner claimed that, despite her marriage, she continued to reside in her parental village and relied on a residential certificate, corrected electoral-roll entry, mutation documents, rent receipts, electricity bill and other materials.

The authorities, however, relied on enquiry reports stating that after marriage she was residing at her matrimonial village and concluded that she did not satisfy the local-residence requirement under Clause 8(v) of the Bihar Targeted Public Distribution System (Control) Order, 2016.

The District Level Committee recommended grant of the licence to Respondent No. 7 on 6 August 2021.

The petitioner’s earlier writ petition was disposed of with liberty to pursue a statutory appeal, but her Supply Appeal No. 46 of 2022 was dismissed by the Divisional Commissioner on 20 July 2023.

Although the petitioner asserted that Respondent No. 7’s licence had subsequently been cancelled, Respondent No. 7 stated that the cancellation had been set aside and the matter remanded for fresh consideration.

1. Whether the Divisional Commissioner erred in upholding the rejection of the petitioner’s claim for a PDS licence on the ground that she was not ordinarily residing in the concerned Gram Panchayat.

2. Whether the petitioner’s higher position in the merit list, residential certificate, electoral-roll entry and property-related documents entitled her to the PDS licence over Respondent No. 7.

3. Whether the subsequent cancellation of Respondent No. 7’s licence affected the legality of the original selection decision or justified interference under Article 226 of the Constitution.

The Court applied Clause 8(v) of the Bihar Targeted Public Distribution System (Control) Order, 2016, which requires consideration of residence in the concerned Panchayat/Ward as an eligibility or preference criterion for grant of a PDS licence.

A higher position in a merit list does not create an indefeasible right to appointment or grant of a licence unless the candidate satisfies all eligibility conditions.

Mere ownership or possession of property, or entry in an electoral roll, does not conclusively establish ordinary residence when a competent factual enquiry records otherwise.

In judicial review under Article 226, the High Court does not re-appreciate factual findings unless they are perverse, arbitrary, or unsupported by material evidence.

The subsequent cancellation or restoration of a rival’s licence does not, by itself, determine the legality of the original selection decision.

The Court found that the authorities had conducted an enquiry through the Assistant District Supply Officer and the Circle Officer, Imamganj, and that their reports, supported by statements of local representatives and residents, recorded the petitioner’s residence at her matrimonial home after marriage.

The Court considered the petitioner’s residential certificate, corrected electoral-roll entry, mutation papers and related documents but held that these materials did not conclusively displace the findings arising from the factual enquiry.

Since residence under Clause 8(v) was a relevant eligibility condition, the petitioner could not rely solely on her superior merit position to claim the licence.

The findings were based on relevant material and were therefore not shown to be perverse, arbitrary or unsupported, making appellate or constitutional interference unwarranted.

The subsequent proceedings concerning Respondent No. 7’s licence were held irrelevant to the legality of the original decision.

It held that the authorities had lawfully treated her as not satisfying the applicable residence requirement and that her higher merit position did not confer an automatic right to the PDS licence.

The order dated 20 July 2023 passed by the Divisional Commissioner, Magadh Division, Gaya, was upheld, and the writ petition was dismissed as devoid of merit.

Any pending interlocutory applications were also disposed of.