2022 Supreme(Pat) 591
IN THE HIGH COURT OF JUDICATURE AT PATNA
SANJAY KAROL, CJ. and PARTHA SARTHY, J.
CWJC No.888 of 2022
(21.12.2022)
Chanda Singh ... Petitioner
vs.
Indian Oil Corporation Limited
& Ors. ... Respondents
For the Petitioner: Mr. Neeraj Kumar Gupta.
For the Respondents: Mr. Sanat Kumar Mishra.
Headnote:
Government Contract – Cancellation of Petroleum Dealership – Respondent IOC Ltd. were conscious of road being a State Highway – Nevertheless they conducted interview of petitioner, issued L.O.I in her favour, entered into an agreement and KSK retail outlet was commissioned in year 2015 itself – More than seven years have passed and in spite of so many inspections, no irregularities have been found – At this stage action of IOC Ltd. in terminating dealership agreement executed between IOC Ltd. and petitioner is illegal and unsustainable – Order whereby Divisional Retail Sales Head has terminated 'B' site Kisan Sewa Kendra of petitioner by terminating dealership agreement quashed – Writ Petition allowed. (Paras 21, 22 and 23)
Partha Sarthy, J.—Heard learned counsel for the parties.
2. The petitioner has filed the instant application for the following relief(s):—
“i. For issuance of an appropriate writ/s, order/s, direction/s preferably in the nature of certiorari, setting aside the illegal and arbitrary show cause notice dated 06.12.2021 issued under the sign and signature of Respondent no. 4 whereby and whereunder wrong allegation has been alleged by the respondents on misconceived, false and baseless plea with respect to suppression and misrepresentation of material fact by the petitioner in her application submitted for the award of the subject Dealership.
ii. For issuance of an appropriate writ/s, order/s, or direction/s preferably in the nature of mandamus commanding the respondent authorities not to take any stern action such as cancelling the appointment of the petitioner as a dealer of IOCL and further termination of the Dealership Agreement dated 27.07.2015 pursuant to the show cause notice dated 06.12,2021 issued by respondent no.4 on misconceived ground and the false and baseless plea taken by the respondents that the petitioner has suppressed or misrepresented any material fact in her application submitted for the Award of the subject dealership.
iii. For issuance of appropriate Writ/s, Order/s or direction/s in the nature of Mandamus directing the respondent authorities not to interfere with the sales and supply of the retail outlet dealership of the petitioner on the wrong assumption or presumption that she has suppressed or misrepresented any material fact in her application for the award of RO dealership.
iv. For any other relief/reliefs which the Hon'ble Court may grant in the interest of the petitioner that may be deemed appropriate and necessary in this case.”
Subsequently during pendency of the writ application on the respondent Indian Oil Corporation Limited (‘IOC Ltd.’ in short) coming out with the order dated 25.2.2022 terminating the ‘B’ site Kisan Sewa Kendra (‘KSK’ in short) M/S S.S. Petroleum of the petitioner, on an application filed by the petitioner, the following prayers were added:—
“(v) For quashing the letter dated 25.02.2022 as contained in Ref. No. MDO/R/SS Petroleum whereby and where under the Respondent no.4 has terminated the "B" site Kisan Sewa Kendra in the name and style M/s SS Petroleum at Chanchora, Dist- Saran by terminating the Dealership Agreement dated 27.07.2015 executed between the Corporation and the Petitioner and effect thereof the petitioner has cease to be the Dealer of the respondent corporation for the aforesaid "B" site KSK forthwith.
(vi) For a direction to the respondents that till disposal of the writ petition to stay the order contained in the letter of termination dated 25.02.2022.”
3. The facts in brief are that on the respondent IOC Ltd. coming out with an advertisement on 19.8.2011 for appointment of KSK outlet dealers within the State of Bihar, the petitioner made an application for allotment of KSK outlet dealership against the location advertised at serial no. 84 of the advertisement which on translation from Hindi read as ‘Chapra-Marhaura road within 5 kms from Chapra’ under the open (women) category. The land offered was within 5 kms from Chapra and appertaining to Mauja Chanchaura, PS- Chapra Mufassil, Thana no. 345, Khata no. 74, Khesra no. 182(P) on Chapra-Marhaura road. It was mentioned in the site plan submitted along with the application that the same was a PWD road.
4. As per procedure of selection, the Technical Committee for selection of land for setting of the retail outlet visited the land offered by the petitioner and submitted their report dated 10.4.2012 (Annexure-2) finding the land to be suitable for development of a retail outlet and confirmed that the subject land is at the advertised location. A Letter of Intent (‘L.O.I’ in short) dated 6.9.2012 was issued in favour of the petitioner. As required, the petitioner obtained no objection certificate (Annexure-6) as per Petr