[National Food Security Act] Supreme Court upholds West Bengal government's decision to cancel Fair Price Shop vacancies

The Supreme Court recently upheld the decision of the State of West Bengal to cancel Fair Price Shop (FPS) vacancies in order to implement the National Food Security Act, 2013. [State of West Bengal & Ors. v Gitashree Dutta].The bench of Justices Abdul Nazeer and Vikram Nath held that the West Bengal Government, by recalling the vacancy of FPS, was trying to enforce the 2013 Act, which included in its ambit, a responsibility to reform the existing Targeted Distribution System. "The State Government was reposed with a responsibility for implementing the 2013 Act which, inter alia, entrusted a responsibility to reform the existing Targeted Distribution System. The respondent in an unfinalized selection process has no vested right in his favour to seek continuation of the notified vacancies. Hence, by recalling the vacancy notification, the State endeavored to enforce the statute and that there can be no estoppel against a statute", the Supreme Court said in its judgment..The top court was hearing an appeal preferred by the State against the decision of a Division Bench of the Calcutta High Court which held that the appellant-state was not justified in cancelling the declaration of FPS vacancies. The respondent had participated in the selection process in 2014 and was recommended as a first priority candidate but no final appointment order was issued.Later, the State government published a notification cancelling the declaration made in favour of the appellant. The respondent approached the Calcutta High Court where a single-judge dismissed the plea and upheld the notification. The respondent then preferred an intra-court appeal leading to the decision of the Division Bench in its favour which quashed the notification. The Bench held that the State of West Bengal had failed to justify the decision to recall the vacancies and that it has acted in an arbitrary and unreasonable manner.This prompted the instant appeal by the State government before the Supreme Court..The top court held that the respondent's contention that there was a legitimate expectation cannot prevail over a policy of the State unless it suffers from some kind of perversity, unfairness or unreasonableness or if it violates any fundamental or other enforceable rights of the respondent. In the instant case, the Court noted that the cancellation of vacancies of the FPS was necessary for the implementation of the 2013 Act and, therefore, it was not arbitrary or unreasonable. .Further, the Court noted that the notification calling for vacancies had a clause which provided for the State to reject applications without ascertaining any reasons. "The agency which initiated the selection process is entitled to recall it upon reasonable grounds. Participation in the selection process or being a selected candidate does not vest such candidate with the right to direct the Authorities to give him appointment," the judgment stated..The apex court also rejected the plea of promissory estoppel raised by the respondent as the mandate of the statute was followed."The appellants were reposed with a responsibility of implementing the mandate of the 2013 Act, and more importantly, to bring about reforms in the existing Public Distribution System as stipulated under Section 12 of the said Act," said the Court..Therefore, it allowed the appeal, setting aside the Division Bench judgment and upholding the order of the single-judge as well as the notification issued by the West Bengal Government..Senior Advocate Rakesh Dwivedi appeared for the appellants and Advocate Supriyo Chattopadhaya appeared for the respondent..[Read Judgment]