IMPORTANT POINT
Public authorities must adhere to principles of natural justice and allow due process before terminating contracts or rights.

ORDER:

Venkateswarlu Nimmagadda, J.

The present Writ Petition is filed under Article 226 of the Constitution of India seeking the following relief:

“…..to issue a writ, order or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the action of the respondent No.2 in termination of „A? site retail outlet dealership of the Petitioner i.e., M/s.Kasturi Petroleums situated at Etukuru Road, Nallacheruvu, Guntur town Vide Ref.VJADO/MDG/KASTURI PETROLEUM/180694 Dated 06.09.2024 after lapse of 4 years from the date of inspection team report SI.No.1282387 dated 04.09.2020 though the petitioner submitted reply on 02.11.2022 to this Show cause notice dated 14.10.2022 in spite of the fact that all the parameters are intact and without considering objections raised by the petitioner at the time of hearing and issued the termination order of the „A? site retail outlet dealership of the Petitioner is highly illegal, arbitrary, discriminatory and violation of Articles 14, 19 and 21 of Constitution of India and contrary to the Marketing Discipline Guidelines (MDG), hence the impugned termination order is liable to be set aside and consequently direct the respondent authorities to drop/cancel the impugned termination order issued by the 2nd respondent as the petitioner is no way connected with the internal part of the DU i.e., E01 and Ell error logs as all the seals have been found intact and the petitioner sufficiently suffered for 4 years due to suspension of DU with 4 Nozzles and to pass such other or orders ….”

2. The short grievance of the petitioner herein is that the 2nd respondent herein has terminated the petitioner’s retail outlet dealership vide order dated 06.09.2024 after lapse of four years from the date of inspection dated 04.09.2020 though the petitioner submitted reply on 02.11.2022 to the show cause notice dated 14.10.2022 issued to him. Enquiry also conducted in the year 2022 itself. To the surprise of the petitioner this impugned termination proceedings dated 06.09.2024 were served on 10.09.2024, when W.P.No.19715 of 2024 came up for hearing at the time of admission.

3. Heard learned counsel for the petitioner and learned counsel for the respondents.

4. Learned counsel for the petitioner submits that the petitioner herein is appointed as retail outlet dealer at Etukuru Road, Nallacheruvu, Guntur District by the respondent corporation on 31.01.2005. Since then, the petitioner has been operating retail outlet business without any adverse remarks. While things stood thus, the Inspection Team from Divisional Office along with Legal Metrology Department and OEM vendors conducted inspection on 04.09.2020 and some technical defects in respect of E01 & E11 logs have been observed. All K factors have found to be matching with calibration logs. On further observation of the DU, all the seals have been found intact but it was observed that there is difference between seals of control card and that of the pulsars. There were few places on the control card where there is a suspicion of tampering. So all the integrated cards have been removed and sealed in the presence of all the members and the same were sent for testing. The test report shows that the dispensing unit is in order and within the permissible limits with all the seals intact without any tampering. Even though the seals were intact and delivery of the dispensing unit was correct, inspection team has suspended the sales of MS/HSD from one dispensing unit from 04.09.2020. Even after lapse of four years, the respondents neither reviewed nor revoked the suspension of the dispensing unit. He further submits that once the seal is found to be as intact the dealer cannot be held responsible for any error or defect. Moreover, the dealer cannot access the internal mechanism of dispensing unit.

4(a). Learned counsel for the petitioner further submits that as per the letter dated 04.09.2020 addressed by the inspection teams, the sales from the dispensing unit were stopp