Allotment of fair price shops and creation of third-party rights: refrain from ad hoc allotments pending final appeal

Challenge to interim administrative allotments of fair price shops addresses whether temporary ad hoc allocations create enforceable third-party rights that frustrate pending statutory appeals; the legal basis is the imperative to preserve the integrity of the appellate remedy by avoiding actions that crystallise rights before final determination, and by enforcing prior directions restraining such allotments and requiring attachment to neighbouring shops pending appeal. The operative effect is a mandate that authorities refrain from ad hoc allotments or creating third-party rights until final disposal of the statutory appeal and to comply with earlier directions to protect public interest.

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Issues: Whether authorities must refrain from creating third-party rights by making ad hoc allotments of fair price shops pending final determination of statutory appeals, and whether authorities are bound to comply with the directions contained in the earlier order dated 16.09.2011.

Analysis: The petition challenges administrative action creating purported third-party rights through temporary or ad hoc allotment of fair price shops while a statutory appeal under the applicable distribution order remains pending. The Court examined the effect of ad hoc allotments on the integrity of the appeal process and the risk of creating enforceable rights that could frustrate the appellate remedy. The Court relied on the prior coordinates' directions which restrained ad hoc allotment and required attachment of shops to neighbouring shops until final disposal of statutory appeals, and directed circulation and compliance of those directions to prevent avoidable litigation and protect public interest.

Conclusion: Authorities are directed to comply with the earlier order and to refrain from allotting fair price shops on an ad hoc basis or creating third-party rights until the statutory appeal is finally decided; the writ petition is disposed of accordingly.

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