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2025 Supreme(Kar) 2903

2025 KHC(D) 14713
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
M.NAGAPRASANNA, J.
Sagar S/o Vilas Bhovi - Appellant
Vs.
The Chief Regional Manager, Hindustan Petroleum Corporation Limited - Respondent
Writ Petition No. 107357 of 2024 (GM-RES)
Decided On : 30-10-2025
Advocate Appeared :
For the Appellant : Sri. Santosh R Kolkar, Advocate
For the Respondent : Sri. C.V.Angadi, Advocate

The court affirmed that applicants must be provided an opportunity to rectify deficiencies in their land documentation before rejection of their dealership applications, emphasizing the principles of natural justice.

Headnote:(A) National Highways Act - Rejection of application for petroleum dealership - Respondent rejected petitioner's claim on the basis that land offered abuts the National Highway - Guidelines state locations for retail outlets must avoid highways to ensure safety - Selection was initially provisional, but final inspection deemed the land ineligible based on safety standards. (Paras 3, 9, 18)

(B) Administrative Law - Principles of natural justice - Failure to grant petitioner an opportunity to rectify documentation defects was impermissible, and prior decisions held similar cases required reconsideration with an opportunity for amendments. (Paras 19)

Facts of the case:
The petitioner applied for a petroleum outlet dealership on land purportedly qualifying under Group-I, but inspection revealed his land abutted a national highway, rendering it unsuitable. The petitioner argued against the rejection, citing similar cases.

Findings of Court:
The court determined the rejection without allowing the petitioner the chance to provide substitute land was erroneous; thus, it allowed the petition directing the respondent to offer the petitioner an opportunity to submit alternate land.

Issues: The court examined whether the properties offered by the petitioner contravened National Highways Act provisions and if the petitioner was afforded a chance to rectify any potential disqualifications.

Ratio Decidendi: The court emphasized the necessity of providing applicants, such as the petitioner, an opportunity to rectify land eligibility deficiencies, highlighting that procedural fairness was not observed by the respondents.

Result: Writ petition allowed.

Table of Content
1. petition for allotment of petroleum outlet (Para 1 , 3)
2. arguments regarding eligibility and compliance (Para 4 , 5)
3. guidelines on land eligibility assessment (Para 7 , 8 , 9)
4. requirement for safety and documentation (Para 10)
5. court's directive to offer alternate land (Para 11)

ORDER :

(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)

1. The petitioners are before this Court calling in question an intimation dated 23.10.2024 issued by the respondent - Hindustan Petroleum Corporation Ltd., (hereinafter referred to as “the Corporation” for short), rejecting the claim of the petitioner seeking allotment of a petroleum outlet on the score that the land that he has offered for establishment of a petroleum outlet abuts the National Highway – NH 548H.

2. Heard the learned counsel Shri Santosh R.Kolkar appearing for the petitioners and the learned counsel Shri C.V. Angadi appearing for the respondents.

3. Facts in brief germane are as follows:

The respondent - Corporation issues an advertisement calling for applications for award of regular / rural retail outlet dealership in Karnataka State. The petitioners claiming to be the owners of certain parcels of land and on the plea that they come under Group-I category to get a regular outlet dealership apply in terms of the said advertisement. On scrutiny of the documents on 19.10.2023, the application of the petitioners was provisionally accepted and was declared to be provisionally selected by the respondent, as no other applicants had submitted any application under Group-I category. Therefore, the land of the petitioners or the application of the petitioners was provisionally processed and selected. The respondent is said to have directed the petitioner to remit amount of Rs. 40,000/- towards initial security and upload all documents specified in the intimation. The Land Evaluation Committee of the respondent Corporation then fixes a date to inspect the property of the petitioner. The Land Evaluation Committee is said to have found that the land offered to a portion of it was abutting the National Highway NH-548H and the dimension required was 30x30 meters for urban stretch and 35x35 metres for a rural stretch and therefore, the petitioner's land was not found to be eligible. It is this that has driven the petitioner to this Court in the subject petition.

4. Learned counsel appearing for the petitioner submits that on scrutiny of the documents the name of the petitioner figured at Sl.No.317. There was no indication in the said drawal of the eligible lands that it abutted the National Highway. As an illustration, the learned counsel would take this Court through Sl.Nos.327 and 470, where it was clearly indicated that it abutts the National Highway. He would also seek to place reliance upon the judgment rendered by Division Bench in Writ Appeal No.608 of 2021 to buttress his submission of reconsideration of the case of the petitioner.

5. Per contra, learned counsel appearing for the Corporation Shri C.V. Angadi would vehemently refute the submissions, contending that the petitioner cannot be shown any indulgence as a portion of his land to the tune of 1.7 acres does abut the National Highway NH-548H. Therefore, his land being not suitable, notwithstanding the fact that he was provisionally selected in Group-I category cannot be considered. He would submit that if this Court would show indulgence and approve the place, it would throw a danger to the vehicles movement and endanger the lives. Learned counsel would seek dismissal of the petition.

6. I have given my anxious consideration to the submissions made by the learned counsel appearing for the parties and perused the materials available on record.

7. The afore-narrated facts are not in dispute. The petitioner in terms of the advertisement does apply along with all the documents. The documents are processed. The processing of the documents leads the petitioner to be selected provisionally subject to the land inspection comm

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