IN THE HIGH COURT OF PATNA
Partha Sarthy, J.
PAPPU KUMAR YADAV – Appellant
Versus
THE INDIAN OIL CORPORATION – Respondent
Civil Writ Jurisdiction Case No. 5228 of 2020
Decided On : 25-01-2021
Government Contract – LPG Distributorship – Withdrawal of Letter of Intent – By clause 5.4 of L.O.I. petitioner/allottee has categorically been barred from inducting anyone as a partner or making any change in constitution of proposed distributorship, by inducting a partner without prior approval from I.O.C Ltd. – Petitioner entered into a registered partnership agreement with two other persons – Partnership being effective from 31.7.2019 – This was in clear violation of clause 5.4 of L.O.I dated 27.6.2019 – Action of IOC Ltd. In withdrawing Letter of Intent dated 27.6.2019 cannot be said to be illegal – Court finds no merit in writ application nor any illegality in order impugned – Writ Application dismissed. (Paras 11 and 12)
JUDGMENT :
Partha Sarthy, J.
1. Heard learned counsel for the petitioner and learned counsel for the respondents through video conferencing.
2. The petitioner has filed the instant application for the following reliefs:
"(i) For issuance of writ in the nature of certiorari for quashing of letter no. PAT/LPG/MORAKHAS dated 03-02-2020 issued by the Deputy General manager (LPG-S), Patna Area Office, Indian Oil Corporation Limited whereby the letter of intent issued in favour of the petitioner for running the Rural LPG Distributorship in Morakhas, Siwan has been withdrawn.
(ii) For necessary direction upon the respondent authorities to restore the letter of intent in favour of the petitioner and allow the petitioner to run the Rural LPG Distributorship in Morakhas, Siwan as the petitioner has already invested huge amount and has made all the necessary preparations for running the LPG Distributorship.
(iii) For restraining the respondent authorities from allotting the Rural LPG Distributorship in Morakhas, Siwan in the OBC category to any other candidate during the pendency of this writ application.
(iv) For any other direction, which your Lordships may deem fit and proper in the facts and circumstances of the case."
3. The case of the petitioner is that pursuant to the advertisement published by the Indian Oil Corporation (hereinafter referred to as the I.O.C. Ltd.) in the Hindi daily newspaper ‘Hindustan’ on 18.6.2017 inviting applications for grant of rural LPG Distributorship for the location Morakhas in the District of Siwan. The petitioner applied under the OBC category. Fulfilling all the required qualifications, he submitted his online application and was selected for LPG Distributorship at the Morakhas location in District Siwan under the OBC category. The I.O.C. Ltd. issued a Letter of Intent as contained in letter dated 27.6.2019 (Annexure-2). It is further the case of the petitioner that he was enticed by two persons from the adjoining village for running the business of LPG Distributorship in a partnership and they entered into a registered deed of partnership on 31.7.2019 (Annexure-3). Soon thereafter the two persons started creating trouble for the petitioner and thus the petitioner got a legal notice dated 9.9.2019 sent to them through his advocate stating therein that the petitioner cannot proceed with the partnership. The same was followed by a second and third notice dated 29.10.2019 and 4.1.2020. The three notices are Annexure-4/A, 4/B and 4/C to the writ petition.
4. It is the case of the petitioner that in furtherance of the intended mischief the two persons who had entered into partnership with the petitioner filed a compliant before the I.O.C. Ltd. and on receipt of the said complaint a letter dated 4.12.2019 was written by the Deputy General Manager (LPG-S) of the I.O.C. Ltd. to the petitioner asking him to explain within 7 days of the receipt of the letter as to why action be not taken against the petitioner for violation of the relevant clause of the Letter of Intent dated 27.6.2019. The petitioner filed his reply to the show cause notice on 30.12.2019, also stating therein about getting a legal notice sent on 9.9.2019 and the steps being taken by him to get the registered deed dated 31.7.2019 cancelled. He requested for sympathetic consideration and gave his undertaking that he will be more conscious and careful in following the guidelines of the I.O.C. Ltd. By order contained in letter dated 3.2.2020 (Annexure-7) issued under the signature of the Deputy General Manager (LPG-S), Patna area office of the I.O.C. Ltd., the Letter of Intent dated 27.6.2019 for LPG Distributorship issued in favour of the petitioner was withdrawn along with forfeiture of the amount of Rs. 30,000/. It is against this order dated 3.2.2020 of the I.O.C. Ltd. withdrawing the Letter of Intent that the instant application has been filed.
5. It is the submission of learned counsel for the petitioner that in view of section 41 of the Indian Par
SupremeToday
Ownership documentation and eligibility criteria must be fulfilled at the time of application submission for distributorship; prior acceptance does not negate subsequent verification of ownership.
The court emphasized that termination of business agreements requires adherence to principles of natural justice, including the right to a personal hearing, and that mere allegations without substant....
A Court of Law sitting in its writ jurisdiction cannot interpret the clauses of a Brochure on Unified Guidelines for Selection of LPG Distributorships in a manner contrary to its proposition and pers....
The respondent Corporation should not act on personal disputes and should only consider changes in the distributorship constitution if officially intimated by the petitioner in accordance with its po....
Interference in factual questions under Article 226 is impermissible in government grants.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.