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2013 (2) TMI 131 - SC - Indian LawsPublic Distribution System (PDS) through the Gram Panchayats - High Court allowed the writ petition quashing the order of the State Government by which the PDS through the Gram Panchayats had been withdrawn - Held that - It is evident that the High Court has taken a view that the provision of Article 243-G is merely an enabling provision, and it is not a source of legislation. Whatever may be the merit of the case, the issues raised before this Court have neither been agitated before the High Court nor the same have been considered. There are no proper pleadings in respect of the said issues. No factual foundation had been laid down by any of the parties to deal with such issues nor the necessary/proper parties are before us. More so, the judgment and order impugned was passed by the High Court about one decade ago. Subsequent to the said judgment, many developments had taken place and a large number of orders have been passed by the Central Government as well as by the State of U.P. Thus, in view of the same, it is neither desirable nor permissible for us to examine the issues raised by learned ASG at this stage as we do not think it proper to enter into the said controversy. The writ petition had been filed by the respondent no.1 without having any locus standi nor it could claim to be a person aggrieved of the order of the Government dated 13.1.2000, withdrawing the order dated 10.8.1999 conferring the power to allot and cancel the fair price shops in rural areas on the Gran Panchayats. The writ petition was filed in 2003 after a delay of 3 years and was thus liable to be dismissed on the ground of delay and laches. Respondent no.1 could not maintain the writ petition as it could not be aggrieved of the Government Order dated 13.1.2000. Even the direction issued by the High Court had not been challenged by the said respondent. More so, the judgment and order was stayed by this Court vide order dated 19.4.2004. The appeal is allowed with liberty to the State Government to pass appropriate orders taking into consideration the provisions of Articles 243-G and 243-N of the Constitution and the amendment to Section 15 of the Act 1947 and Section 32 of the Act 1961 and Schedule I to the same if it so desires.
Issues Involved:
1. Legality of the withdrawal of Public Distribution System (PDS) management from Gram Panchayats by the State Government. 2. Locus standi of Zila Parishad to challenge the withdrawal order. 3. Applicability and interpretation of Article 243-G of the Constitution of India. 4. Procedural requirements and proper parties in the writ petition. 5. Validity of Government Orders under the Essential Commodities Act vis-`a-vis the 73rd Constitutional Amendment. Detailed Analysis: 1. Legality of the Withdrawal of PDS Management from Gram Panchayats: The Supreme Court examined the legality of the State Government's decision to withdraw the management of the Public Distribution System (PDS) from Gram Panchayats, which was initially conferred by an order dated 10.8.1999 and later withdrawn on 13.1.2000. The High Court had quashed this withdrawal, asserting that the power to manage PDS should be vested in Kshetriya Panchayats as per the provisions of the U.P. Kshetriya Panchayats and Zila Panchayats Act, 1961. However, the Supreme Court found that the High Court erred in its judgment, as the State Government had the authority to designate any appropriate body, including the District Magistrate, to manage the PDS. 2. Locus Standi of Zila Parishad: The Supreme Court highlighted that the Zila Parishad, which filed the writ petition, did not have the locus standi to challenge the State Government's order of 13.1.2000. The Zila Parishad was not an aggrieved party by the withdrawal of PDS management from Gram Panchayats. The Court noted that none of the Gram Panchayats, which were directly affected by the order, had approached the court for any relief. Therefore, the writ petition should not have been entertained by the High Court. 3. Applicability and Interpretation of Article 243-G of the Constitution: Article 243-G of the Constitution is an enabling provision that allows State Legislatures to endow Panchayats with powers and responsibilities necessary for self-governance, including the implementation of schemes listed in the Eleventh Schedule, such as PDS. The Supreme Court clarified that this article is not a source of legislative power but merely enables States to devolve functions to Panchayats. The High Court's interpretation that Article 243-G mandates the delegation of PDS management to Panchayats was incorrect. The State Government retains the discretion to designate the appropriate authority for PDS management. 4. Procedural Requirements and Proper Parties in the Writ Petition: The Supreme Court emphasized the procedural irregularities in the writ petition filed by the Zila Parishad. The petition lacked necessary parties, as none of the Gram Panchayats, the primary stakeholders, were included. Moreover, the petition was filed after a significant delay of three years, which warranted its dismissal on grounds of delay and laches. The High Court failed to consider these procedural deficiencies while allowing the writ petition. 5. Validity of Government Orders under the Essential Commodities Act vis-`a-vis the 73rd Constitutional Amendment: The Supreme Court examined the interplay between Government Orders issued under the Essential Commodities Act (EC Act) and the 73rd Constitutional Amendment. The Central Government had delegated its powers under the EC Act to State Governments, allowing them to regulate PDS. The State Government's orders dated 3.7.1990 and 13.1.2000, which assigned PDS management to the District Magistrate, were challenged by the High Court as being inconsistent with Article 243-G. However, the Supreme Court noted that Article 243-G is an enabling provision and does not override the State Government's authority under the EC Act to designate the appropriate body for PDS management. The Court also referenced the Public Distribution (Control) (Amendment) Order, 2004, and the U.P. Scheduled Commodities Distribution Order, 2004, which further empowered the State Government to regulate PDS. Conclusion: The Supreme Court set aside the High Court's judgment, reinstating the State Government's authority to designate the appropriate body for PDS management. The appeal was allowed with the liberty for the State Government to pass appropriate orders considering the provisions of Articles 243-G and 243-N of the Constitution and relevant amendments to the U.P. Panchayat Rajya Act, 1947, and the U.P. Kshetriya Panchayats and Zila Panchayats Act, 1961.
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