2025 Supreme(Kar) 699
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. NAGAPRASANNA, J.
Shri Manjunatha R., S/o. Rajappa - Appellant
Vs.
The Hindustan Petroleum Corporation - Respondent
Writ Petition No.3868 Of 2025 (GM - RES)
Decided On : 02-06-2025
Advocate Appeared:
For the Appellant :Sri D.R.Ravishankar, Sr.Advocate For Sri Ravishankar K., Adv.
For the Respondent:Sri B.Pramod, Advocate And Sri Shamanth Naik, HCGP, Sri Bipin Hegde, Advocate For Sri Karthik V., Adv.
Selection for petroleum outlets requires compliance with guidelines regarding land eligibility, specifically that the land must be non-agricultural at the time of application submission.
Headnote:(A) Guidelines for selection of dealers for petroleum outlets - Misrepresentation regarding land eligibility - The petitioner contested the allotment made to the 7th respondent asserting that the land offered was agricultural at the application time, contrary to prescribed guidelines requiring non-agricultural land for dealership. The Court found that documentation provided by the 7th respondent failed to demonstrate compliance with the guidelines, particularly concerning the status of the land as a long-term lease for commercial use. The selection was deemed erroneous as it did not meet statutory criteria. (Paras 4, 5, 6, 10, 18)
(B) Mandamus - Direction to review allotment - The court ruled that although the petitioner could not be allotted the dealership, the existing allotment to the 7th respondent was incorrect and quashed the selection while remitting the case for consideration of the next eligible candidate. (Paras 16, 17)
Facts of the case:
The petitioner challenged the successful bid of the 7th respondent for not meeting eligibility criteria as per the guidelines, specifically claiming that the land was agricultural and not eligible for dealership purposes. The 7th respondent's application was accepted despite the land being converted to commercial use only post-selection.
Findings of Court:
The land offered by the 7th respondent did not legally qualify for the dealership as it was still agricultural when the application was submitted, rendering the selection process flawed.
Issues: The main issues included the legal status of the land submitted for dealership and adherence to guidelines regarding land use at the submission time.
Ratio Decidendi: The court emphasized the necessity for compliance with guidelines at the submission time. The previous judgments illustrated a precedent on similar issues relating to land eligibility for dealership allocations.
Result: Writ petition allowed in part; the allotment to the 7th respondent quashed, and the matter remitted for consideration of the next eligible candidate.
ORDER :
M. NAGAPRASANNA, J.
The petitioner is before this Court seeking a direction to prohibit respondents 1 and 2 from granting any petroleum outlet under Group-I Category to respondent No.7 and seeks a consequential direction of issuance of a writ in the nature of mandamus directing the respondents/authorities to cancel dealership allotment in favour of respondent No.7 and in turn consider the petitioner for allotment of similar petroleum outlet.
2. Heard Sri D.R. Ravishankar, learned senior counsel appearing for the petitioner, Sri B.Pramod, learned counsel appearing for respondents 1 and 2, Sri Shamanth Naik, learned High Court Government Pleader appearing for respondent Nos. 3 to 6 and Sri Bipin Hegde, learned counsel appearing for respondent No.7.
3. Facts, in brief, germane are as follows: -
On 17-10-2023 the 1st respondent/Hindustan Petroleum Corporation (‘the Corporation’ for short) calls for applications from desirous and eligible participants for the purpose of selection for establishment of retail outlets of the Corporation. All the interested persons were called for bidding on 08-12-2023. It appears that respondent No.7 was declared as successful bidder for the location that forms the subject matter of the present lis. Therefore, his application dated 17-10-2023 comes to be accepted.
4. It is the averment in the petition that upon reviewing the documents submitted by the 7th respondent it was found that the land offered for the purpose of establishment of fuel station was an agricultural land. At the time of submission of the application the 7th respondent did not possess the land as mandated under the guidelines for such allotment. The only land the 7th respondent had was on a long term lease of 20 years on the said agricultural land in terms of a lease deed dated 25-09-2023. On 24-01-2025, a communication emerges from the respondent/Corporation that it has scrutinized the documents or reviewed the documents submitted by the 7th respondent, which sufficiently demonstrated that the land that was shown as the place for establishment of fuel station met the eligibility criteria under Group-I category in terms of the guidelines and all the allegations that the petitioner had made were found to be incorrect.
5. The petitioner again submitted representations to the Tahsildar, District Registrar and Sub-Registrar requesting clarification on the registration of agricultural land for commercial use, particularly regarding long term lease agreement for a period of 20 years. The representations remained unanswered. In the interregnum, the petitioner on coming to know that the 7th respondent would be allotted the outlet, files the present writ petition on 07-02-2025. A coordinate Bench of this Court grants an interim order not to make any allotment of the retail outlet dealership to the 7th respondent until further orders. The 7th respondent then prefers an application seeking vacation of the interim order. During the pendency of the said application, the 7th respondent files a memo that on 07-03-2025 the land in Sy.No.136/7 measuring 37 guntas which is submitted for usage of fuel station has been converted from agriculture to non- agricultural/commercial use for the purpose of putting up of a petrol bunk only. The matter, with the consent of parties, is heard at that stage.
6. The learned senior counsel Sri D.R. Ravishankar appearing for the petitioner would contend that the 7th respondent has misrepresented about non-agricultural status of the subject land. The petitioner should have been declared a successful bidder, as the land mentioned by him, in his application is a legally converted land eligible to be used for commercial purpose. The petitioner’s land was converted long before the last date of filing of the application in terms of the notification issued by the 1st respondent. He would, therefore, contend that the guidelines mandate that production of conversion order in the case of a long-term lease of any land of 19 year




