Karnataka HC Revives Cooperative’s Fair-Price Shop Licence For Now, Sends Rival Shopkeeper’s Challenge Back After State’s Erroneous Concession

Respondent No. 1 challenged the grant of a Fair Price Shop licence to the appellant by order dated 25 October 2015.

The Single Judge set that order aside and directed the State to allot the shop to a third person after following due process, relying on the State’s counsel’s submission that the grant was erroneous

In the appeal, the State filed objections taking a position contrary to that submission and relied on a 2013 circular and a 2014 amendment to the Karnataka Essential Commodities (Public Distribution System) Control Order, 1992, which it said supported the grant

The appellant contended that these materials had not been placed before the Single Judge

The appeal was brought under Section 4 of the Karnataka High Court Act, 1961

It applied the procedural principle that a matter should be reconsidered by the Single Judge where the decision under appeal was based on a submission later contradicted by the State and relevant materials had not been brought to that judge’s attention

The Single Judge had set aside the licence grant on the State’s concession that it was erroneous. In the appeal, however, the State’s objections asserted that the grant was supported by the applicable circular and a 2014 amendment, and the appellant maintained that those materials had not been presented earlier

Because the Single Judge had not considered the circular or the merits of the dispute, the Division Bench found it appropriate, in the particular circumstances, to quash the order and remit the matter rather than determine the allotment’s validity itself

The Single Judge’s order dated 1 March 2024 was quashed and set aside, and the writ petition was remitted to the Single Judge for fresh consideration in light of the Court’s observations