MADHYA PRADESH RATION VIKRETA SANGH SOCIETY & ORS. ETC. ETC. versus STATE OF MADHYA PRADESH & ANR.

Citation: [1982] 1 S.C.R. 750 · Decided: 22-09-1981 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Dismissed
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Judgment (excerpt)

A 
750 
8 
c 
D 
E 
F 
G 
H 
MADHYA PRADESH RATION VIKRETA SANGH 
SOCIETY & ORS. ETC. ETC. 
v. 
STATE OF MADHYA PRADESH & ANR. 
September 22, 1981 
[R.S. PATHAK AND A.P. SEN, JJ.] 
Constitution of India, 1950, Art, 14, and Madhya Pradesh (Foodstuffs) 
Civil Supplies Public Distribution Scheme, !981-Distribution of foodstuffs at fair 
prices-Scheme of running fair price shop through retail dealers-Replacement 
of-Fair price shops by agents appointed by Government with preference to co· 
optrative societies-Such Seheme whether valid. 
Art. 14-Concept of equality-Equality before law-Unequal treotn1ent of 
equals-Whether permissible-Advocates whether can form consumer's cooperative 
society. 
The Madhya Pradesh Foodstuffs (Distribution) Control Order, 1960, "'as 
promulgated by the State Government, in exercise- of the powers conferred by 
section 3 read with s. 5 of the Essential Commodities Act, 1955, to enable the 
State Government to distribute foodstuffs at fair prices through fair price shops. 
Jn 1977, the State Government decided to appoint unemployed graduates as 
retail dealers of Government fair price shops. The whole system of distribution 
of foodstuffs at fair price shops to the consumers coUapsed due to flagrant 
violations of the Control Order by the retail dealers. 
In July 1980, the Govern1nent decided that the fair· price shops should be 
run by consumers' cooperative societies. Pursuant to this1 on October 31, 1980, 
the Stat~ Government an1ended the Control Order by deleting the provisions 
relating to fair price shops through retail dealers and providing for running of 
the fair price shops under a Government scheme. 
On March 20, 1981, the 
State Government pron1ulgated the Madhya Pradesh (Foodstuffs) Civil Supplies 
Public Distribution Scheme, 1981, replacing the earlier Scheme. The Scheme 
envisaged allotment of shops to the public by inviting applications from it by 
notification, giving preference to co-operative societies. The important feature 
of the Sche1ne was that the fair price shops \Vere to be run under the direct 
control and supervision of the Collector and that the fair price shop-keeper was 
required to keep sufficient stocks of foodstuffs to prevent hardship and inconveni-
ence to the consumers. 
The petitioners filed writ petitions in the High Court, contending that the 
introduction of the new schen1e for running of Government fair price shops by 
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M.P.R. VIKRETA SA1'GH v. M.P. STATE 
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751 
agents to be appointed under a G0ver·.1ment scheme, giv;ng preference to co-
operative societies, in replacement of the earlier Scheme .bf running fair price 
shops through retail dealers, was violative of Arts. 14 and 19 (l) (g) of the Consti-
tution. The contention was rejected and the writ po;:titions dismissed. 
In the Special Leave P~titions to this Court, it was contended that although 
there was no objection to a State monopoly in trade, the action of the Govern-
ment should not be arbitrary, irrational and irrelevant, and that arbitrariness was 
writ large in the formulation of the Scheme inasmuch as there was selection of 
co-operative societies of all descriptions to run the fair price shops and therefore 
the Scheme was, in fact, not being implemented to carry out its professeJ 
object. 
Dismissing the Special Leave Petitions, 
HELD : 1. The Scheme in no way infringes the petitioners' right to carry 
on their trade in foodgrains. 
They are free to carry on business as wholesale or 
retail dealers in foodgrains by taking out licences under the Madhya Pradesh 
Foodgrains (Licensing) Order, 1964. There is no fundamental right in any one to 
be appointed as an agent of a fair price shop under a Government Scheme. [758FJ 
A 
B 
c 
Sarkari Sasta Anaj Vikreta Sangh, Tehsil Ban1atra and Or.r. v. State of 
D 
Madhya Pradesh and Ors. WP No. 4186 of 01 decided on August 25, 1981 and 
R.D. Shelly v Airport Authority, [1979] 3 SCR 1014 at 1042 referred to. 
2. The question whether fair pri..:e shops in the State under a Government 
Scheme should be directly run by the Government through the instrumentality of 
consumers' cooperative societies as its agents or by retail dealers to be appointed 
by the Collector is essentially a matter of policy with which the Court is not 
concerned. (758 CJ 
3. The wider concept of equality before the Jaw and the equal protection 
of laws is that there shall be equality an1ong equals. Even among equals there 
can be unequal treatment based
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