Patna HC Sets Aside Rejection Of Daughter-In-Law’s PDS Licence Claim, Orders Fresh Review Despite Husband’s Competing Claim

Late Rajeshwar Singh held a licence to operate a Public Distribution System (PDS) shop and died on 25 August 2014.

The petitioner, his daughter-in-law, applied for the licence on compassionate grounds on 21 November 2014.

An inquiry report was submitted in April 2015; an affidavit by the deceased’s wife stated that the petitioner was capable of operating the shop, while the deceased’s elder son was mentally unfit to do so

The respondents stated that the petitioner’s claim was rejected on 5 February 2021 because affidavits supporting the competing claims were contradictory, and that the husband’s claim was separately rejected as time-barred

The petitioner sought consideration of her application and challenged the failure to grant the licence

The Court referred to the Bihar Public Distribution System Control Order, 2016, as the applicable framework for considering the petitioner’s claim, but did not identify a specific provision or cite precedent

It stated that the competent authority must consider the relevant documents and circumstances and pass a reasoned order; it also observed that a claim should not be rejected merely because another family member has made a competing claim

The Court considered the petitioner’s timely application and the affidavit stating that she was capable of running the shop, alongside the respondents’ reliance on contradictory affidavits

It held that the claim required fresh consideration under the 2016 Control Order and that rejection without proper reconsideration of the relevant circumstances could not be sustained

The authority was therefore required to assess the documents and circumstances afresh and issue a reasoned decision.

The exercise was directed to be completed within two months of receipt or production of the judgment