The court affirmed that strict adherence to application guidelines is essential in contractual matters involving State instrumentalities, emphasizing the need for fairness and reasonableness in decision-making.

JUDGMENT :

SANJAY KAROL, J.

Leave granted.

2. This appeal is filed at the instance of Bharat Petroleum Corporation Limited¹[Hereinafter “BPCL”] assailing the judgment and order dated 14th December, 2023 passed by the High Court of Judicature at Madras in W.A.No.866 of 2023, which confirmed the judgment and order of the learned Single Judge dated 8th February 2023 in W.P.No.3641 of 2023.

3. The issue before the Courts below pertains to the grant of a retail outlet dealership of BPCL to the respondent, wherein the respondent had apparently, mistakenly shown herself to belong to Group 2 - those who have a “firm offer” for a suitable piece of land, as opposed to Group 1 – those who already possess suitable land. When she attempted to have the same rectified, BPCL took no action and hence, recourse to the law had to be taken.

4. The brief facts required to be noticed in the adjudication of an appeal are that BPCL issued an advertisement for the selection of a retail outlet in November 2018. Annexure P-2 reveals that the group type reflected against the name of the respondent, which was at serial No.4, was Group 2. On realizing the error, the respondent sent clarificatory letters on 12th February 2019, 18th February 2019 and 28th July 2020, requesting that her candidature be considered under Group 1. Given that there was no response to these representations, the respondent preferred Writ Petition No.2965 of 2021, which was disposed of vide order dated 18th March 2021, wherein it was observed that her representations be considered in accordance with law, within four weeks from the date of receipt of the order. Said representations were rejected by BPCL through a communication dated 5th April, 2021, giving the following reasons:

• “It may be noted that the Selection Guidelines clearly prescribes that applicant should fill up the details in Application form diligently/carefully as these details will be picked up automatically in the relevant field on the application form and that there will be no further scope for editing after the registration process is completed.

• The selection of candidate is based on the Group indicated by the applicant in On-line application and the process is online. In your on-line application, you have mentioned the group of applicant as Group 2. The list of candidates for the location as per priority Group-I, Group-II and Group-III is available in the portal www.petrolpumpdealerchayan.in is available in the portal www.petrolpumpdealerchayan.in and your status is showing as Group 2 applicant.

• Your request for reclassify your applicant as Group I may not be considered in view of extant selection guidelines. Draw of lots was already held for subject location om 06.02.2019 among the Group I applicants and selection process is underway.”

5. The respondent then filed Writ Petition No.13355 of 2021, which was disposed of vide order dated 10th January 2022, recording as follows :

“4. The learned counsel appearing for the respondents further submitted that thereafter S. Rasan was selected and he was directed to submit his documents on 10.01.2020 and land verification and field verification of credentials are also completed and letter of intent will be issued.

5. The learned counsel appearing for the petitioner submitted that the said S. Rasan is also ineligible and further submitted that till date, letter of intent was not issued in favour of S. Rasan. Hence, the Court may issue direction to the respondents to consider the petitioner’s application in Group I.

6. In response, the learned counsel appearing for the respondents submitted that if the said S. Rasan is found to be ineligible, all applications under Group II will be considered and if no other eligible person is available in Group II, the petitioner’s application will be considered in the manner known to law.

7. If the said S. Rasan is found to be ineligible, the respondents are directed to consider the applications under Group II (eligible candidate under Group I) and