The submission was made before Justice Manmohan who said that the Centre would be bound by the statement made by Central Government Standing Counsel Jatan Singh.
The court also observed that the FPS dealers should get whatever is their rightful due as they are not doing any charity.
Delhi government, meanwhile, submitted before the court that it will pay the margin money for the months of February and March to the fair price shop dealers.
The court had earlier questioned how the Act was being implemented without framing of any Rules or fixing the margin money payable to the FPS dealers.
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It was hearing a plea filed by Delhi Sarkari Ration Dealers Sangh claiming that under the Act, FPSs have to sell commodities at the same rate at which they received items from the state government.
They had contended that lack of fixation of margin money payable to them resulted in monetary loss to them.
They have contended in their plea that the Centre is supposed to fix the margin money and pay the same to the state government, which is to then transfer it to those running the FPS outlets.