Court Affirms Non-Transferability of Fair Price Shop Licenses via Will or Partnership Deeds
In a significant ruling, the Bombay High Court at its Aurangabad Bench dismissed a writ petition filed by Gulabsingh, who sought the transfer of a Fair Price Shop License (FPSL) based on a will deed and a partnership deed. The judgment, delivered by Justice Ajit B. Kadethankar, reaffirms the government policies that prohibit such transfers through indirect means, emphasizing the principle that what cannot be done directly cannot be done indirectly.
The case revolved around the transfer of FPSL No. 74, originally held by Respondent No.5, the widow of the initial licensee. After the demise of her husband, the license was transferred to her per the prevailing government policy. Gulabsingh, who served as a caretaker, sought the license's transfer via a will executed by Respondent No.5 and a subsequent partnership deed.
The court clarified that a will deed, as per the Indian Succession Act, 1925, becomes operational only after the death of its author, and no rights can be claimed based on such a deed while the author is alive. Similarly, under the Indian Partnership Act, 1932, while partnerships may be formed, they cannot override government policies governing FPS licenses, which do not recognize such transfers.
The court noted that the Honorable Minister had previously erred by allowing the petitioner's name to be incorporated into the FPS license based on the partnership deed, which was against government policy. This earlier decision was rightly corrected by a subsequent ministerial review, restoring the license to Respondent No.5.
The judgment underscores the principle of law that prohibits doing indirectly what cannot be done directly, thereby preventing the perpetuation of illegality in the transfer of FPS licenses. The court's decision ensures that FPS licenses remain subject to established government policies and cannot be transferred through instruments like wills or partnership deeds.
The ruling dismisses all claims by the petitioner for the transfer of the FPS license and upholds the government policy, disallowing any claims based on the will or partnership deeds. The court concluded that any independent claims regarding the partnership must be pursued separately and are not relevant to the FPS license transfer.
Bottom Line:
Transfer of Fair Price Shop License (FPSL) cannot be effected based on a Will deed or Partnership deed. FPSL is granted to an individual or recognized entity, and government policies prohibit transfer based on such instruments.
Statutory provision(s): Indian Succession Act, 1925 Section 2(h), Indian Partnership Act, 1932 Section 4, Maharashtra Scheduled Commodities (Regulations and Distribution) Order, 1975
Gulabsingh v. State of Maharashtra, (Bombay)(Aurangabad Bench) : Law Finder Doc id # 2875993
