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2012 Supreme(AP) 767

High Court of Andhra Pradesh
B. SESHASAYANA REDDY, J.
Kanala Obula Konda Reddy
Versus
Hindustan Petroleum Corporation Limited, rep. by its Chairman and Managing Director & Others
Writ Petition No.25971 of 2010
Decided On : 27-08-2012

Advocates Appeared:
For the Petitioner:C.V. Bhaskar Reddy, Advocate.
For the Respondents:R1 to R3, Thoom Srinvias, R5, O. Manohar Reddy, Advocates.

Headnote:

Constitution of India, 1950 – Article 12 – Companies Act, 1956 – Writ– Writ petition has been taken out seeking mandamus declaring action of Senior Regional Manager, Hindustan Petroleum Corporation Limited, LPG Regional Office, A.P.-2nd respondent in issuing proceedings vide Ref. No. SSP/LPG, disqualifying him as LPG Dealership/Distributorship of Duvvur Village and Mandal, Kadapa District, as illegal and arbitrary – Held, Material brought on record clearly indicates that whatever amount spent by the 5th respondent, even if it is true, is only pending the writ petition – Contention 5th advanced by counsel appearing for 5th respondent that respondent spent huge amount for establishing LPG Distributorship at Duvvur Village and Mandal, Kadapa District, needs no consideration – Court quashed impugned proceeding vide ref. issued by 2nd respondent and also letter of intent, issued in favour of 5th respondent – Writ Petition Allowed (Paras 16, 17)

Judgment :-

This writ petition has been taken out by Kanala Obula Konda Reddy seeking mandamus declaring the action of the Senior Regional Manager, Hindustan Petroleum Corporation Limited, LPG Regional Office, Anantapur, A.P.-2nd respondent in issuing the proceedings vide Ref. No. SSP/LPG, dated 06.05.2010, disqualifying him as LPG Dealership/Distributorship of Duvvur Village and Mandal, Kadapa District, as illegal and arbitrary. The consequential relief to set aside the letter of intent, dated 09.08.2010, issued in favour of Ms.Arundhathi Gangi Reddy-5th respondent, has also been sought for.

2. 1st respondent is a Company incorporated under the Companies Act, 1956. It is ‘State’ within the meaning of Article 12 of the Constitution of India. Its function, inter alia, is allotment of grant of LPG Distributorship. An advertisement was issued by the 2nd respondent on 01.10.2007 in EENADU daily newspaper in Andhra Pradesh inviting applications for appointment of LPG Dealership/Distributorship of Duvvur Village and Mandal, Kadapa District, Andhra Pradesh, under open category. The petitioner completed his Bachelor Degree of Engineering in Mechanical Branch in the year 1980 from Mysore Univesity and Post Graduation in the same Branch in the year 1992 from Bharathiar University. He is a gold-medalist in Graduation and Post-Graduation. He submitted application on 31.10.2007 for allotment of LPG Dealership of Duvvur. Ms.Arundhathi Gangi Reddy-5th respondent also submitted application pursuant to the notification, dated 01.10.2007 issued by the 2nd respondent. The selection committee empanelled the candidates for appointment of LPG Dealership/Distributorship of Duvvur Village and Mandal, Kadapa District. The petitioner stood at Sl.No.1. Whereas, the 5th respondent stood at Sl. No. 2 in among the empanelled candidates. The field verification committee of the 1st respondent noticed certain variations with regard to financial items in the application of the petitioner and submitted its report. Basing on the said field verification report, the 2nd respondent issued a show cause notice, dated 22.03.2010, calling the petitioner to submit necessary documents as to proof of balance of Rs.3,00,000/-in his S.B. account as on the date of application i.e., 30.10.2007. The petitioner submitted explanation to the show cause notice. He asserted in the explanation that on the date of submitting the application, he got requisite amount to his credit in the S.B. Account. The 2nd respondent found the explanation not satisfactory and thereby proceeded to disqualify the petitioner for allotment of LPG Dealership/Distributorship of Duvvur Village and Mandal, Kadapa District and informed the same to the petitioner under letter, dated 06.05.2010, and consequent on disqualifying the petitioner, letter of intent, dated 09.08.2010, came to be issued to Ms. Arundhathi Gangi Reddy-5th respondent, who stands at Sl.No.2 among the empanelled candidates. Hence, the petitioner filed this Writ Petition questioning the proceedings issued by the 2nd respondent in disqualifying him and also in issuing letter of intent, dated 09.08.2010, in favour of the 5th respondent. For better understanding the grievance of the petitioner, I deem it appropriate to refer para.8 of the affidavit filed in support of the writ petition, and it is thus:

“08. I respectfully submit that in all respects I have submitted my application on 31.10.2007 along with bank statement dated 31.10.2007 and other relevant documents. The relevant portion of column No.14.2, on which ground the respondent No.2 disqualified me, is as follows:

“Amount in the Saving Account in the name of self & the member of the “Family Unit” as on the date of application. Amount in the name of joint account of the member(s) outside the “Family Unit” should not be mentioned.”

According to the above condition, I have to show my bank account or Family Unit as on the date of application. Admittedly, I have submitted my application on 3




















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