Kerala HC Orders State to Compensate Distributors for Covid-19 Food Kits

The Kerala High Court has intervened to assist thousands of Authorised Retail Distributors (ARD) by directing the state government to compensate them for distributing food kits to citizens during the COVID-19 pandemic and ‘Onam season’.

ARDs asserted in their petitions that they had distributed the food kits under the government’s directives, which had assured them commission at specified rates. However, they claimed that the government later reneged on this promise.

The state government argued that previous ARDs, in a similar situation, had previously approached the High Court seeking commission payment.

A division bench had ruled in their favor but stated it applied only to the petitioners at that time.

Justice Devan Ramachandran dismissed this argument, deeming it “wholly farfetched in part and incredulous.”

The court emphasized that the division bench’s decision in the earlier case established precedent applicable to the current batch of petitions. It reiterated that the service rendered by the ARDs was not a “free service,” as contended by the government, and thus, they were entitled to commission.

Justice Ramachandran’s order mandated the competent authority of the government to disburse any outstanding commission owed to the petitioners within four months from receiving a copy of the judgment. The court granted the government four months’ time, as requested by the special government pleader, citing fiscal constraints faced by the state.