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2012 Supreme(SC) 935

SUPREME COURT OF INDIA
SWATANTER KUMAR & SUDHANSU JYOTI MUKHOPADHAYA, JJ.
Sr. Divisional Retail Sales Manager, Indian Oil Corporation Ltd. Through Poa Holder & Others
Versus
Ashok Shankarlal Gwalani
CIVIL APPEAL NO. 9101 2012 (Arising out of SLP(C) No.31932 of 2010)
Decided on : 14-12-2012

Headnote:Government Contract-Petroleum Dealership-Cancellation of allotment-If irregularity is detected in the matter of selection or preparation of a panel it is desirable to have a fresh selection instead of rearranging panel which is found to be vitiated-Authority empowered to appoint, is the competent authority to decide as to whether panel should be discarded and there should be a fresh selection-Interview Committee, Screening Committee and Investigation Officer assessed three candidates in three different groups due to which position of candidates changed in merit list prepared by Interview Committee, Screening Committee and Investigation Officer-High Court under Article 226 of Constitution ought to not have interfered with decision of competent authority in canceling selection-Order and judgment passed by High Court set aside with liberty to Competent Authority to readvertise petrol/diesel retail outlets and to make fresh selection in accordance with law. (Paras 8, 14 to 18)

JUDGMENT :-

Sudhansu Jyoti Mukhopadhaya, J.

Leave granted.

2. The present appeal has been filed against the impugned order dated 29th September, 2010 passed by the Bombay High Court in Writ Petition No. 5032 of 2010 wherein the High Court has granted the Writ of Mandamus directing the Indian Oil Company to allot the dealership of the site located at Thane Belapur Road, Village Mahape, Navi Mumbai, Maharashtra to Shri Ashok Shankarlal Gwalani (hereinafter referred to as the “respondent”)

3. The relevant facts as pleaded by the appellant are as follows:

On 11th June, 2005, the Indian Oil Corporation Limited (hereinafter referred to as the “Company”) published a proclamation in leading newspapers and invited applications for grant of petrol/diesel retail outlets (dealership) for various locations in the State of Maharashtra. The respondent on 14th July, 2005, amongst others applied for the same. Interviews were conducted on 9th-10th December, 2005. One Mr. Nilesh L. Kudalkar was placed at the top of the merit panel while the respondent was placed second and one Mr. K. Srinadha Rao was third. However, since the difference between the marks of the top three candidates was within 5%, the result of the interview was kept in abeyance in accordance with the policy of the company dated April 7, 2005. A Screening Committee was established which reviewed the markings and carried out another interview of the three candidates. The result was declared on 4th April, 2006 and Mr. Nilesh L. Kudalkar was first in the merit panel.

4. Being aggrieved respondent and Mr. K. Srinadha Rao both made complaints on 10.4.2006 and 19.4.2006 respectively to the company alleging irregularities in the selection process. In accordance with the policy dated 1st September, 2005, an investigation was made by the Company into the allegations made by them. It was found, among other things, that the respondent and Mr. Srinadha Rao had not been marked correctly as regards their financial capability and that both had failed to provide the attested documents as had been specifically required under the advertisement. Since the allegations in the complaints were found to have merit, the selection was cancelled and all the candidates were to be called for re-interview. In the meantime, on 28th April, 2006, one Mr. Pritesh Chhajed, who was an M&H Contractor operating on the site filed Civil Suit No. 230/2006 before the Thane Sr. Division Court seeking an injunction against the company from terminating the contract and evicting him from the land. He was unsuccessful in the same and filed an appeal before the Bombay High Court which was dismissed by the High Court on 27th June, 2008 and he was asked to vacate the site by December 31, 2008.

5. Re-interviews were conducted on 22nd and 24th December, 2008. The respondent was found to be the only candidate in the merit panel. However, complaints were received from Mr. Pritesh Chajjed (who had also appeared in the interviews) on 26th December, 2008 and from Mr. K. Srinadha Rao on 16.12.2008, 23.12.2008, 30.12.2008, 2.01.2009 and 10.02.2009. Again on 30.12.2008, a one man Inquiry Commission was appointed to investigate the allegations contained in the complaints. Also on 14.1.2009, Mr. Nilesh L. Kudalkar filed a Writ Petition vide no. 113 of 2009 against the company for cancelling the merit list and declaring him to be the no.1 candidate. The High Court of Bombay was pleased to dismiss the aforementioned writ petition in April, 2009.

6. In the meantime, the inquiry instituted by the Company revealed that the complaints made by various persons had merit. 7. Therefore, on 6th August, 2009, the appellants sought approval from their management for re-advertisement of the location. On 18th August, 2009, the Company management advertised for re-interview of all the candidates including scrutiny of all documents from the initial stage in order to remove all errors from the selection process. Since the code of conduct for elections wa





















































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