Karnataka HC Orders Fresh Look At Son’s Bid To Take Over Father’s 1993 Fair-Price Shop, Citing Prospective Rule Changes

The petitioner’s father held a fair-price-shop licence granted in 1993 and died on 9 May 2026.

The petitioner applied on 23 June 2026 for transfer of the authorization on compassionate grounds.

Respondent No. 4 rejected the application, citing that the deceased licensee was 73 years old at death and that the petitioner had not completed SSLC.

The petitioner challenged that endorsement and sought consideration of his application

Clause 13 of the Public Distribution System (Control Order), 1992, as described in Sri Tousif Khan, permitted transfer of an authorization upon the authorized dealer’s death, with prior Government approval, to specified family members.

Amendments made in 2016, 2017 and 2021 introduced restrictions, including an age limit of 65 years for the deceased dealer and a minimum educational qualification for the transferee.

The Court relied on Sri Tousif Khan, which held that these amended restrictions operate prospectively and do not apply to authorizations granted under the unamended Control Order.

The petitioner’s father’s authorization had been granted in 1993, before the cited amendments.

Applying the reasoning in Sri Tousif Khan, the Court held that respondent No. 4 had erred in rejecting the application on the basis of the deceased licensee’s age and the petitioner’s lack of SSLC qualification.

The impugned endorsement therefore required reconsideration in accordance with that precedent

It directed respondent No. 4 to consider the petitioner’s application dated 23 June 2026 and transfer the authorization on compassionate grounds, having regard to Sri Tousif Khan, within three months of receiving a copy of the order.

No order was made as to costs