1 2026:CGHC:22998 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPC No. 2383 of 2023 1 - Gourella Sahakari Vipnan (Marketing) Sanstha Samiti, Maryadit (Limited) Pendra Road, District Gourella Pendra- Marwahi (C.G.) Through Its Manager / Secretary Dhara Singh Rathore S/o Shri Mathura Prasad Rathore, Aged About 47 Years, R/o Ward No. 15, Samta Nagar, Nagar, Panchayat Gourella, District Gourella Pendra Marwahi Chhattisgarh. ... Petitioner(s) versus 1 - State Of Chhattisgarh Through The Secretary, Department Of Food, Civil Supplies And Consumer Protection, Mahanadi Bhawan, Mantralaya, Atal Nagar, Raipur District Raipur Chhattisgarh. 2 - The Director Of Food, Civil Supplies And Consumer Protection, Block 2, 3rd Floor, Indrawati Bhawan, Mantralaya, Atal Nagar, Raipur District Raipur Chhattisgarh. 3 - The Collector (Food) Collectorate Office District Gourella Pendra -Marwahi Chhattisgarh. 4 - The Commissioner, Civil Supplies And Consumer Protection, Department, Directorate Civil Supplies And Consumer Protection Block 2, 3rd Floor, Indrawati Bhawan, Mantralaya, Atal Nagar, Raipur District Raipur Chhattisgarh. 5 - Food Controller, District Gourella - Pendra -Marwahi Chhattisgarh. 6 - The Sub Divisional Officer (Revenue), Pendra Road, District Gourella Pendra- Marwahi Chhattisgarh. 7 - Food Officer, District Gourella Pendra - Marwahi Chhattisgarh. ... Respondent(s) For Petitioner(s) : Shri AS Rajput, Advocate. For State/Res(s) : Shri Anand Dadariya, Dy AG. Hon’ble Mr. Justice Amitendra Kishore Prasad Order on Board 14/05/2026 AVINASH SHARMA Digitally signed by AVINASH SHARMA Date: 2026.05.20 15:27:41 +0530 2 1. The petitioner has challenged the advertisement dated 21.07.2022, 17.02.2023 and 12.05.2023 issued by the respondent authorities by the Fair Price Shop allotted to the petitioner is advertised for new allotment. 2. By way of this Writ Petition, the petitioner has prayed for the following reliefs:- 10.1 That, this Hon'ble Court may kindly be pleased to set-aside /quash the order/advertisement dated 12.05.23, 21.07.22 & 17.02.23 (Annexure P-3) issued by respondent no.7 & 6 and the respondents be directed not to take any coercive steps against the petitioner's fair price shops till final decision of writ petition. 10.2 Any other relief deemed fit in the facts and circumstances of the case may also be granted. 3. Facts of the case in brief are that the Petitioner Society is a duly registered society under the Chhattisgarh Co-operative Societies Act, 1960 bearing Registration No. D.R.B.S.P. 11/1960. The Petitioner Society has appointed approximately seven employees on different posts for the smooth functioning of its fair price shops. Some of the employees have been permanently engaged. The Society is regularly paying their salaries. Presently, within the territorial limits of District Gourella–Pendra–Marwahi, the Petitioner Society is operating five fair price shops. The Petitioner Society has incurred substantial expenditure towards maintenance of infrastructure, including building, godown, staff salaries, and other operational expenses. The Society receives only commission from the Government for distribution under the Public Distribution System, and from such commission it maintains its establishments and provides livelihood to its employees. Respondent No. 6 and Respondent No. 7 had allotted the aforesaid fair price shops to the Petitioner Society at different places and on different dates since the year 2001, subject to certain terms and conditions. Since 2001 till date, 3 the Petitioner Society has been running the fair price shops sincerely, honestly, and without any complaint or allegation. However, vide advertisements dated 12.05.2023, 21.07.2022, and 17.02.2023 issued by Respondent No. 6 and Respondent No. 7, three out of the five fair price shops of the Petitioner Society, namely Jyotipur Ward No. 10 & 12 (ID No. 401009002), Nagar Panchayat Gourella Khermai Ward No. 9 (ID No. 401009005), Nagar Panchayat Gourella Village Andhiyarkhor are proposed to be allotted to some other society/committee, without issuing any show cause notice or providing an opportunity of hearing to the Petitioner Society, which action is arbitrary, illegal, and violative of the principles of natural justice. Hence this Petition. 4. Learned counsel for the petitioner submits that the impugned order/advertisement issued by Respondent Nos. 6 and 7 for allotment of the aforesaid three Fair Price Shops, which are presently being operated by the petitioner society, has been issued without affording any opportunity of hearing or issuing any show cause notice to the petitioner. The action of the respondents is thus in gross violation of the principles of natural justice and is liable to be quashed. The State Government itself had awarded a certificate of appreciation to the petitioner society in the year 2016 in recognition of its excellent services rendered under the Public Distribution System. The impugned action, therefore, is arbitrary and contrary to the State’s own acknowledgment of the petitioner’s satisfactory performance. He submits that the petitioner society has been operating the Fair Price Shops since the year 2001, when the shops were allotted pursuant to the notification known as the Chhattisgarh (Food) Public Distribution Civil Supplies Scheme, 2001 and thereafter governed under the Chhattisgarh Public Distribution System (Control) Order, 2004. At the time of 4 allotment, there was no upper limit prescribed by the Government regarding the number of shops that could be allotted to one society. Therefore, reliance upon the Chhattisgarh Public Distribution System (Control) Order, 2016 to disturb or cancel earlier allotments is illegal and unsustainable. The petitioner society has appointed approximately seven employees on different posts with regular remuneration. Some of them are permanent employees engaged to ensure smooth functioning of the Fair Price Shops. In the territorial limits of District Gourella-Pendra-Marwahi, the petitioner society is operating five Fair Price Shops and is regularly paying salaries to its employees. The cancellation of the Fair Price Shops is arbitrary, illegal, unconstitutional and violative of Article 19(1) (g) of the Constitution of India. The impugned action directly affects the petitioner society’s fundamental right to carry on its occupation and deprives its employees of their right to livelihood. The shops were duly allotted in the year 2001 under the provisions of the Chhattisgarh (Food) Public Distribution Civil Supplies Scheme, 2001. The said scheme does not contain any prohibitory clause restricting a society from operating more than two Fair Price Shops. Accordingly, the petitioner society was lawfully allotted five shops under the prevailing policy framework. It is a well-settled principle of law that rights accrued under an existing policy or statutory scheme cannot be taken away retrospectively by framing a new policy, unless expressly provided. The allotment made under the 2001 Scheme cannot be nullified by applying the subsequent Chhattisgarh Public Distribution System (Control) Order, 2016 retrospectively. The rejection of the petitioner’s representation by Respondent No. 1 overlooks this settled legal position. The petitioner society has engaged seven employees in various capacities and is maintaining five Fair Price Shops in District Gourella-Pendra- 5 Marwahi. The society is discharging its obligations efficiently and without complaint. The petitioner society has incurred substantial expenditure towards infrastructure, including building, godown facilities, and staff maintenance. The society earns only commission from the Government under the Public Distribution System and utilizes the same for payment of salaries and operational expenses. The sudden implementation of restrictions under the Chhattisgarh Public Distribution System (Control) Order, 2016, without safeguarding existing allotments, has placed the petitioner society in grave hardship. If three out of five shops are withdrawn, the society and its employees would suffer irreparable financial loss, resulting in deprivation of livelihood and potential legal liabilities towards employees. The shops were originally allotted under the provisions of the Chhattisgarh (Food) Public Distribution Civil Supplies Scheme, 2001 and continued under the Chhattisgarh Public Distribution System (Control) Order, 2004. The impugned order issued in purported exercise of powers under the Chhattisgarh Public Distribution System (Control) Order, 2016 cannot operate retrospectively so as divest the petitioner of rights already accrued. 5. Learned State counsel submits that under the Chhattisgarh Public Distribution System (Control) Order, 2001, Fair Price Shops were allotted without any restriction regarding the maximum number of shops to be allotted to a person or society. Subsequently, the State Government framed the Chhattisgarh Public Distribution System (Control) Order, 2004, whereby eligibility criteria for allotment of Fair Price Shops were revised and restricted to specified categories such as Cooperative Societies, Women Self Help Groups, Forest Protection Committees, and other societies specified by the State Government. Thereafter, in the year 6 2006, an amendment was incorporated in Clause 9(C) of the Control Order, 2004, stipulating that Fair Price Shops shall be allotted only to Cooperative Societies constituted with the object of distribution or sale of essential commodities to their members and to the public of the concerned area. Ordinarily one Fair Price Shop shall be allotted to any agency within its area of operation. However, in order to ensure regular supply of essential commodities to ration card holders, the Authorized Officer may, for specific reasons recorded in writing, allot more than one shop, but in no case exceeding three Fair Price Shops. Further, Clause 9(3)(A) was inserted for general areas (other than tribal areas), restricting allotment only to the following agencies namely Adim Jati Multipurpose Cooperative Societies (LAMPS), Gram Panchayat, Women Self Help Groups, Forest Protection Committees and Other Cooperative Societies. Subsequently, Clause 9(3)(b), (c) and (d) were omitted, and Clause 9(4)(a) was substituted to provide that allotment shall be made only to Gram Panchayat, Women Self Help Group , Primary Agricultural Credit Society, Other Cooperative Societies. Thereafter, on 23.01.2017, the State Government, in exercise of powers conferred under Section 3 of the Essential Commodities Act, 1955 read with the Targeted Public Distribution System (Control) Order, 2015 issued by the Government of India, introduced the Chhattisgarh Public Distribution System (Control) Order, 2016 with effect from 23.01.2017. Under Clause 9(4) of the Control Order, 2016, a specific cap was imposed restricting allotment to a maximum of three Fair Price Shops to any agency. Accordingly, the petitioner Society, which had been allotted 16 Fair Price Shops under the Control Order, 2001, was apprised vide memo dated 27.08.2019 that it was running more than the permissible number of shops under the Control Order, 2016. The petitioner 7 was therefore directed to submit its option indicating which shops it wished to surrender. The petitioner challenged the said memo by filing W.P.(C) No. 3751/2019. The Hon’ble Court disposed of the petition vide order dated 21.10.2019 directing the petitioner to submit a representation before the competent authority, and further directing the authority to decide the representation within 10 days. In compliance thereof, similarly situated societies submitted representations, which were rejected by the competent authority vide order dated 24.12.2019 in accordance with the Control Order, 2016. Subsequently, by notification dated 31.07.2021 (published in the Official Gazette on 02.08.2021), Clause 9(4) of the Control Order, 2016 was amended providing that generally only one Fair Price Shop shall be allotted to an agency, and in special circumstances, the number may be extended up to a maximum of two shops. In compliance with the order passed by the Special Secretary, Department of Food and Civil Supplies, the answering respondent directed the petitioner to surrender the Fair Price Shops bearing ID Nos. 401009002, 401009005 and 402009014. The petitioner was permitted to continue operating the shops bearing ID Nos. 401009001 (Near Rest House, Gourella) and 402009042 (Village Gangpur, Block Gourella). Despite being granted an opportunity to exercise option, the petitioner surrendered only one shop and failed to respond regarding the remaining shops. Consequently, the competent authority proceeded to cancel the excess shops and initiated fresh allotment proceedings as per Clause 7 of the Control Order, 2016. It is submitted that the petitioner was running five Fair Price Shops in clear violation of Clause 9(4) of the Control Order, 2016. Therefore, advertisement for allotment of three Fair Price Shops was issued (Annexure P-3) in accordance with law. It is further 8 submitted that the agreement relied upon by the petitioner was executed under the Control Order, 2004, which stands superseded by the Control Order, 2016. Hence, no right can be claimed under a superseded statutory regime. Further, the present writ petition is not maintainable in view of the efficacious alternative statutory remedy provided under Clause 18 of the Control Order, 2016. Under Clause 18(1), an appeal lies before the Collector against the order of the Sub Divisional Officer (Revenue) within 30 days. Under Clause 18(2), a further appeal lies before the State Government within 30 days against the order of the Collector. The petitioner has directly approached this Hon’ble Court without exhausting the statutory remedy and has wrongly declared that no alternative remedy is available. Such suppression of material facts disentitles the petitioner from any discretionary relief under Articles 226/227 of the Constitution of India. 6. I have heard learned counsel for the parties and perused the material available with the petition. 7. Upon consideration of the rival submissions and perusal of the material available on record, it is evident that the petitioner Society was initially allotted multiple Fair Price Shops under the then prevailing policy framework. However, with the coming into force of the Chhattisgarh Public Distribution System (Control) Order, 2016, a statutory cap was imposed restricting the number of Fair Price Shops that may be allotted to a single agency. The said Control Order has been issued in exercise of powers under Section 3 of the Essential Commodities Act, 1955 read with the Targeted Public Distribution System (Control) Order, 2015 issued by the Government of India. The petitioner cannot claim a vested or perpetual right to continue operating more shops than permitted under the subsequently enforced statutory regime. 9 8. It is well settled that policy decisions and statutory amendments governing public distribution and essential commodities are made in public interest and are subject to change from time to time. The allotment of Fair Price Shops does not create an indefeasible or proprietary right in favour of the allottee. The authorities are competent to regulate or restrict such allotments in accordance with the prevailing statutory framework. The record further indicates that the petitioner was informed regarding the excess number of shops being operated and was granted an opportunity to exercise its option to retain shops within the permissible limit. Thus, the plea of violation of principles of natural justice is not substantiated from the material on record. 9. Further, Clause 18 of the Chhattisgarh Public Distribution System (Control) Order, 2016 provides an efficacious alternative statutory remedy of appeal before the Collector and thereafter before the State Government. The petitioner has directly approached this Court without availing the statutory remedy and has failed to demonstrate any exceptional circumstance warranting interference under Article 226 of the Constitution of India. 10. In view of the above, this Court is of the considered opinion that no case for interference is made out in exercise of extraordinary writ jurisdiction. 11. Accordingly, the writ petition being devoid of merit is hereby dismissed. Sd/- (Amitendra Kishore Prasad) Judge Avinash