SUPREME COURT OF INDIA
COMMON CAUSE (A REGISTERED SOCIETY)
VERSUS
Union of India
Decided on November 4, 1996
Constitution of India – Article 32 – Application have not been officially received by Petroleum Ministry no receipt - entry on any of application – Applicants seem to have approached Minister directly application have been dealt with in any of branches of Ministry – There is nothing on record to indicate that Minister kept any criteria in while making allotments – Appellants came to know about the availability of petrol pumps is not known – No advertisement was made to invite applications is nothing on record to show that any other method of inviting applications was adopted is no indication in allotment orders or anywhere in the record to show that Minister kept any guidelines in view while making these allotments – Held, Question of quantum. Mr. Salve has vehemently contended that Capt. Sharma was a part of system which was operating before his joining as a Minister – According to him types of wrongs were being committed even earlier on assumption that the Ministers discretion was to be exercised on his subjective satisfaction further contended that since concept of absolute liability of public servants for misfeasance has been of recent origin in this country even while awarding examplary damages leniency should be shown some plausibility in the contentions raised examining all facts and circumstances of this case and giving thoughtful consideration to this aspect we direct Capt to pay exemplary damages to the Government Exchequer – Property with which Capt. Sharma was dealing was public property – Government which is "by people" has to be compensated – Order accordingly.
( 1 ) THE question before this Court in Common Cause v. Unon of India and others, Writ Petition (C) No. 26/95 was whether the allotmnts of retail ortlets for petroleum products (Petrol Pumps) were illegal and as such liable to be quashed. This Court by the judgment dated 25/09/1996 (reported in 1996 AIR SCW 3696) came to the conclusion that the allotments made by Captain Satish Sharma were arbitrary, discriminatory, mala fide, wholly illegal and as such were liable to be quashed. This Court reached the said findings on the following reasoning :
"all the 15 allotments - discussed above - have been made by the Minister in a stereotyped manner. The application have not been officially received by the Petroleum Ministry. There is no receipt - entry on any of the application. The applicants seem to have approached the Minister directly. None of the application have been dealt with in any of the branches of the Ministry. There is nothing on the record to indicate that the Minister kept any criteria in view while making the allotments. How the appellants came to know about the availability of the petrol pumps is not known. No advertisement was made to invite the applications. There is nothing on the record to show that any other method of inviting applications was adopted. There is no indication in the allotment orders or anywhere in the record to show that the Minister kept any guidelines in view while making these allotments. The allotments have been made in a cloistered manner. The petrol pumps - public property - have been doled out in a wholly arbitrary manner". . .
"all these allotments are wholly arbitrary, nepotistic and are motivated by extraneous considerations". . .
"we have no hesitation in holding that Capt. Satish Sharma in his capacity as a Minister for Petroleum and Natural Gas deliberately acted in a wholly arbitrary and unjust manner. We have no doubt in our mind that Capt. Satish Sharma knew that the allottees were relations of his personal staff, sons of Ministers, sons/relations of Chairmen and members of the Oil Selection Boards and the members of the Oil Selection Boards themselves. The allotments made by him were wholly mala fide and as such cannot be sustained.
WE are further of the view that Capt. Satish Sharma acted in a wholly biased manner inasmuch as he unfairly regarded with favour the cases of 15 allottees before him. The relevant circumstances available from record and discussed by us leave no manner of doubt in our mind that Capt. Satish Sharma deliberately acted in a biased manner to favour these allottees and as such the allotment orders are wholly vitiated and are liable to be set aside". . .
"mr. Satish Sharma has acted in utter violation of the law laid down by this Court and has also infracted Article 14 of the Constitution of India. As already stated a Minister in the Central Government is in a position of a trustee in respect of the public property under his charge and discretion. The petrol pumps/gas agencies are a kind of wealth which the Government must distribute in a bona fide manner and in conformity with law. Capt. Satish Sharma has betrayed the trust reposed in him by the people under the Constitution".
( 2 ) ONE of the directions issued by this Court was as under :
"5. Capt. Satish Sharma shall show cause within two weeks why a direction be not issued to the appropriate police authority to register a case and initiate prosecution against him for criminal breach of trust or any other offence under law. He shall further show cause within the said period why he should not in addition, be made liable to pay damages for his mala fide action in allotting petrol pumps to the above mentioned fifteen persons".
( 3 ) PURSUANT to the above quoted direction, a show cause notice was issued to Capt. Satish Sharma. He has filed affidavit in reply to the show cause notice.
( 4 ) WE have heard Mr. Salve, learned Counsel appearing for Capt. Satish Sharma. There are two parts of the directions quoted abo
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