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Karnataka High Court: No Dealer Has Vested Right To Transfer His Authorisation To Run Fair Price Shop

Karnataka High Court: No Dealer Has Vested Right To Transfer His Authorisation To Run Fair Price Shop

Lakshamma vs State of Karnataka [Decided on November 18, 2025]

Karnataka High Court

The Karnataka High Court (Bengaluru Bench) ruled that the Karnataka Essential Commodities (Public Distribution System) Control Order, 1992, does not grant any vested right upon the dealer (petitioner) for transfer of the authorisation to run a fair price shop.

Referring to the 1992 Control Order, the Court pointed out that no authorised dealer shall assign or transfer his authorisation to any other person by and no person shall carry on business as a transferee or otherwise on behalf of any such authorised dealer.

A Single Judge Bench of Justice Suraj Govindaraj observed that the only exception to the 1992 Control Order is that the authorised authority may order for such a transfer in the event of the death of the authorised dealer to the spouse or son, or unmarried daughter, with the prior approval of the Government.

The Bench therefore concluded that no authorised dealer shall assign or transfer his authorisation to any other person, and no person shall carry on business as a transferee or otherwise on behalf of such authorised dealer.

There being no vested right in the petitioner for a transfer, the Bench refused to issue a mandamus to the Joint Director (Food) and dismissed the petition.


Appearances:

Advocate Lakshmikanth K, for the Petitioner

AGA Sidarth Baburao, for the Respondent

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Lakshamma vs State of Karnataka

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