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2024 Supreme(SC) 351

SUPREME COURT OF INDIA
PAMIDIGHANTAM SRI NARASIMHA, ARAVIND KUMAR, JJ.
Mrinmoy Maity – Appellant
Versus
Chhanda Koley and Others – Respondents
Civil Appeal Nos. 5027 of 2024 (@ Special Leave Petition (Civil) No. 30152 of 2018)
Decided On : 18-04-2024

Advocates appeared:
For the Petitioner(s): Mr. Pijush K. Roy, Sr. Adv. Mr. Pritthish Roy, Adv. Ms. Kakali Roy, Adv. Mr. Rajan K. Chourasia, AOR
For the Respondent(s): Mr. Zoheb Hossain, AOR Ms. Asha Gopalan Nair, AOR Ms. Nivedita Nair, Adv.

Headnote:

LPG Distributorship - Writ Petition Challenging Approval - - [Clause 7.1(vi) and (vii) of the guidelines for selection of regular LPG Distributors, Amendment of guidelines, Article 226 of the Constitution of India, Karnataka Power Corportion Ltd. and another v. K. Thangappan and another, Chennai Metropolitan Water Supply & Sewerage Board and others v. T.T. Murali Babu] - The court considered the delay and latches in approaching the writ court, the discretion to be exercised with care and caution, and the principles laid down in various cases to dismiss the writ petition on the ground of delay and latches. The court emphasized that delay defeats equity and that the High Court may refuse to invoke its extraordinary powers if laxity on the part of the applicant to assert his right has allowed the cause of action to drift away.

Fact of the Case:

The appellant and respondent No.1 applied for LPG distributorship. The appellant was selected, and approval was granted. After 4 years, respondent No.1 filed a complaint, leading to a writ petition challenging the approval. The writ petition was initially dismissed, but the appellate court set aside the approval. The appellant appealed against this decision.

Finding of the Court:

The court found that the writ petitioner should have been non-suited due to delay and latches. It emphasized that delay defeats equity and that the High Court may refuse to invoke its extraordinary powers if laxity on the part of the applicant to assert his right has allowed the cause of action to drift away.

Issues: The issues included the delay and latches in approaching the writ court, the discretion to be exercised with care and caution, and the principles laid down in various cases.

Ratio Decidendi: The court dismissed the writ petition on the ground of delay and latches, emphasizing that delay defeats equity and that the High Court may refuse to invoke its extraordinary powers if laxity on the part of the applicant to assert his right has allowed the cause of action to drift away.

Final Decision: The court set aside the order of the Division Bench and restored the order of the Learned Single Judge, allowing the appeal with no order as to costs.

JUDGMENT :

Aravind Kumar, J. :

1. Leave granted.

2. The short point that arises for consideration in this appeal is:

    “Whether the writ court was justified in entertaining the writ petition filed by the respondent No.1 herein challenging the approval dated 03.06.2014 granted in favour of the appellant herein for starting LPG distributorship at Jamalpur, District Burdwan?”

3. The facts in brief which has led to filing of the present appeal are as under:

4. An advertisement came to be issued on 09.09.2012 calling for application for distributors to grant LPG distributorship under GP Category at Jamalpur, District Burdwan. From amongst the applications so received, the application submitted by the appellant as well as respondent No.1 were found to be in order. Since both the appellant and the respondent No.1 were held to be eligible from amongst the six (6) candidates, draw of lots was held on 11.05.2013 and appellant was found successful candidate and was selected for verification of the documents. A letter of intent was issued to the appellant on 24.02.2014 and on 03.06.2014 the approval was granted by the BPCL in favour of the appellant for starting LPG distributorship at the notified place.

5. After a lapse of 4 years, the respondent No.1 filed a complaint with the BPCL alleging that land offered by the appellant was a Barga land and same cannot be considered. Subsequently application having been filed by the appellant offering an alternate land, the Corporation allowed the prayer of the appellant to construct the godown and showroom on the alternate land offered by the appellant.

6. The respondent No.1 being a rival applicant for grant of distributorship, having participated in submitting the application and being unsuccessful in the draw of lots held way back in the year 2013 and being aggrieved by the decision of the Corporation to permit the appellant to commence the construction of godown and showroom on the alternate land offered, filed a writ petition in the year 2017 i.e., on 10.04.2017. Initially, there was an order of status quo passed by the Learned Single Judge and on receiving the report from the Corporation the writ petition came to be dismissed vide order dated 18.01.2018 on the ground that the writ petitioner (respondent No.1 herein) had no locus standi since she had participated in the selection process. Being aggrieved by the same the intra-court appeal came to be filed and the appellate court by the impugned judgment allowed the appeal on the ground (a) that the successful applicant had not offered unencumbered land for construction of godown and showroom; (b) the land offered by the appellant was in contravention of clause 7.1(vi) and (vii) of the guidelines for selection of regular LPG Distributors; (c) the amendment of the said guidelines brought about subsequently, cannot be made applicable retrospectively. The allotment made in favour of the (appellant herein) was set aside by the impugned order and as a consequence of it, the letter of intent, the letter of approval accepting the alternate land offered by the (appellant herein) and all subsequent permissions, licences and no objections issued in his favour were held to be of no effect. Hence, this appeal.

7. We have heard Shri Pijush K. Roy, learned Senior Counsel appearing for the appellant and Shri Zoheb Hossain, learned counsel appearing for respondent No.1 and Shri Shekhar Naphade, learned Senior Counsel for the Corporation. Learned counsel for the appellant would vehemently contend that Learned Single Judge had rightly dismissed the writ petition on the ground of lack of locus standi of the writ petitioner and had dissolved the interim order granted earlier. It is also contended that by the time the interim order of status quo came to be passed by the Learned Single Judge on 20.07.2017, the appellant herein had already submitted an application for accepting the alternate land offered and which request came to be processed and the applicant (appellan

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