JUDGMENT :

R. V. Raveendran, J.

The Indian Express in its issues dated 2nd to 5th August, 2002 carried news reports alleging irregularities in allotment of Retail Outlets, LPG distributorship and SKO-LDO dealerships, by selection of relatives/associates of political functionaries. Questions were also raised in the Parliament in regard to the alleged irregularities. In view of the said controversy, on a review on 5.8.2002, the Prime Minister of India directed the Ministry of Petroleum & Natural Gas to initiate steps to cancel all allotments made on the basis of recommendations of Dealer Selection Boards from January, 2000 till that date. In pursuance of it, a formal order dated 9.8.2002 was issued by the Government of India, Ministry of Petroleum & Natural Gas, cancelling all allotments made in regard to the retail outlets, LPG distributorship and SKO - LDO dealerships on the recommendations of the Dealer Selection Boards since 1.1.2000. The relevant portion of the said order reads thus:

"Having considered the facts and circumstances as also to ensure fair play in action, the Government in the public interest have now decided that all allotments made with respect to retail outlets. LPG distributorships and SKO LDO dealerships on the recommendations of the Dealer Selection Boards since 1st January 2000 be cancelled. it has further been decided that all annulled petrol pumps, LPG distributorships and kerosene dealerships may be auctioned on the basis of competitive bidding.

You may, in view of the above, take necessary action in the matter to:

(a) cancel all the petrol pumps LPG distributorships and kerosene dealerships made on the recommendations of DSBs since 1.1.2000 forthwith.

(b) make alternate arrangements to that consumers are not put to any difficulties till the appointment of new dealers/distributors and

(c) settle the above petrol pumps, LPG distributorships and kerosene dealerships on the basis of auction through competitive bidding modalities for which be worked out by the Government.

The above decision will not be applicable to the allottees under Operation Vijay scheme."

2. The said order resulted in the cancellation of 3760 merit panels prepared by Dealer Selection Boards including 2248 cases where agreements had been entered between the oil companies and the selected allottees and dealerships/distributorship had become operational. The said order was challenged by several allottees in different High Courts. All those writ petitions were transferred to this Court and they were disposed of (except these cases) by order dated 20.12.2002 (reported in Onkar Lal Bajaj v. Union of India - 2003 (2) SCC 673). By the said judgment, this Court quashed the order dated 9.8.2002 except in regard to 413 cases which were named in the newspapers as cases involving irregularities. This Court appointed a Committee comprising Mr. Justice S.C. Agrawal, a retired Judge of this Court and Mr. Justice P.K. Bahri, a retired Judge of Delhi High Court to examine the said 413 cases and submit its report. This Court instructed the Committee that if on a preliminary examination of the facts and records, it formed an opinion that the allotment was made on merits and not as a result of political connection or patronage or other extraneous considerations, it would be open to the Committee not to proceed with the probe in detail. This Court postponed the consideration of those cases, till receipt of the report of the Committee.

3. The Committee issued notices to the concerned parties, sought responses, gave due opportunity of hearing, considered the material produced and submitted a detailed report. In all there were 417 cases (413 cases plus 4 missing cases which were subsequently traced) before the Committee. Out of 417 cases, three were found to be repetitions. Five cases were pending consideration in court. The Committee therefore considered the remaining 409 cases. It opined that in 297 cases, the selections and allotments were not on merits and were as