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Karnataka HC upholds new criteria on transfer of fair price shop dealership

January 13, 2022 08:34 pm | Updated January 14, 2022 08:17 am IST - Bengaluru

The petitioners had termed as arbitrary the condition that the spouse, son or unmarried daughter of the dealer should have passed class 10 to become eligible to seek transfer of dealership to them if the dealer dies before the age of 65.

High Court of Karnataka. | File

The High Court of Karnataka has upheld the amendments made to the Karnataka Essential Commodities Public Distribution System (Control) Order 2017, fixing minimum educational qualification and period of extension of dealership of fair price shops to the eligible family member of the original dealer, who dies before the age of 65.

Justice P.S. Dinesh Kumar passed the order while disposing of over 50 separate petitions filed by Manmohankumar V.C. and others, all dependents of dealership holders. The petitioners had questioned the amendments made to the KECPDS (Control) order in 2017.

The petitioners had termed as arbitrary the condition that the spouse, son or unmarried daughter of the dealer should have passed class 10 to become eligible to seek transfer of dealership to them if the dealer dies before the age of 65. The petitioners had also questioned the limit of five years fixed for the eligible family member of the deceased dealer to retain the dealership after it was transferred to them.

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The court, however, accepted the Government’s contention that extension of dealership is “similar to that of appointment on compassionate grounds.”

“The State Government is entitled to frame policies in the case of commodity distributions like in the case of compassionate appointments wherein the employers are entitled to frame the policies,” the court said.

The condition of ‘pass in class 10’ is a reasonable condition, and the Government was right in contending that a person who deals with commodity distribution is required to have basic knowledge in arithmetic, banking and liaison with public offices, the court said.

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However, the court granted one-time relief, not to be treated as a precedent, to the petitioners asking the Government to consider their application for transfer and extension of dealership in their favour without applying educational qualification as some petitioners had benefited from such interim orders granted by the court earlier.

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