IN THE HIGH COURT AT CALCUTTA
T. S. Sivagnanam, C.J., Hiranmay Bhattacharyya, J.
M/s. Ashab Enterprise – Appellant
Versus
Hindustan Petroleum Corporation Ltd. & Ors. – Respondents
M.A.T. 731 of 2024 With I.A. No. CAN 1 of 2024
Decided On : 26-09-2024
JUDGMENT :
Hiranmay Bhattacharyya, J.
1. This intra Court appeal is at the instance of the writ petitioners and is directed against the Judgment and Order dated 05.04.2024 passed by the learned Single Judge in WPA 28170 of 2023.
2. The appellants herein approached the Writ Court praying for setting aside the order of blacklisting dated 15.05.2023 and the order of termination dated 21.11.2023 both issued by the 3rd respondent herein and for issuance of a mandamus to command the respondents to allow the appellants to continue as transporter in terms of the agreement dated 20.02.2019.
3. The writ petition stood dismissed by the impugned judgment and order.
4. Facts giving rise to the writ petition, in a nutshell, are as follows.
5. The 1st appellant came out successful in the tender floated by Hindustan Petroleum Corporation Ltd (for short "HPCL"), being the 1st respondent herein for transportation of bulk petroleum products by road from ex-Haldia Terminal. A provisional Letter of Acceptance (for short "LOA") was issued by the respondents on 11.02.2019 for the contractual period from 01.03.2019 to 29.02.2024. An agreement was entered into between the parties on 20.02.2019. As per the provisional LOA dated 11.02.2019, the appellants supplied the original documents with regard to 11 Tank Trucks (for short "TTs") to HPCL and the authorities of HPCL after verification expressed their satisfaction.
6. On 30.11.2022, one TT of the appellant being No. WB 78 1657 was loaded with 4000 litres Gasohol and 8000 litres HSD from ex-Haldia Terminal for supplying the same to the customer namely M/s. Bisnupriya Filling Station. Before unloading the products, M/s. Bisnupriya Filling Station took samples and thereafter the products have been unloaded.
7. A show cause notice dated 01.02.2023 was issued by the 3rd respondent alleging that a laboratory test was held on 09.01.2023 and it was found that the sample did not meet the specification, hence the sample failed. The appellants replied to the show cause notice on 09.03.2023 through Electronic Mail. A second show cause notice dated 24.03.2023 was issued directing the appellants to explain as to why TT No. WB 78 1657 should not be blacklisted for two years. The said TT was, however, blacklisted on 15.05.2023.
8. The remaining 10 TTs of the appellants were in service.
9. On 30.08.2023 another TT being No. WB 11E 1792 was loaded from ex-Haldia Terminal for supply to customer namely M/s. Bhubaneswari Coal Mines Ltd.
10. A show cause notice dated 28.09.2023 was issued alleging that joint sampling was carried out on 09.09.2023 and after testing it was reported that the sample does not meet the parameters. On 09.10.2023, the appellants submitted their reply to the show cause notice. The 3rd respondent issued a second show cause notice dated 10.10.2023. Appellants replied to the said show cause notice stating that the testing was done in violation of the principles of natural justice. Thereafter the appellants were directed to be present at the laboratory for re-sampling test of TT No. WB 11E 1792 to be held on 02.11.2023 and the appellants were informed vide e-mail dated 04.11.2023 that re-sampling test had failed.
11. Appellants claim to have submitted several representations. The termination order dated 21.11.2023 was issued by the 3rd respondent and served upon the appellants.
12. Being aggrieved, by the aforesaid action of the respondent authorities, the writ petition was filed.
13. Mr. Saha Ray, learned Advocate appearing in support of this appeal referred to Clauses 4.3.1 and 4.3.2 of Oil Industry Transport Discipline Guidelines (for short "TDG") and Clauses 2.1, 2.2, 2.2.1 and 2.2.2 of the Marketing Discipline Guidelines (for short "MDG") and highlighted the procedures for collection of samples at the time of loading of petroleum products in TT and also after reaching the delivery point. He contended that all the samples collected are to be tested in a laboratory in terms of Clause 4.4 of TDG and Clause 4.5.2 o
The corporation's decision to blacklist the entire fleet upon finding a duplicate dip rod in one truck was justified as per the transport discipline guidelines, emphasizing strict liability for viola....
The main legal point established is that a valid show cause notice for imposing the penalty of blacklisting the entire fleet of TTs must clearly inform the noticee about the possibility of such penal....
The procedural fairness and reasonableness of the actions cannot be called into question as due opportunity was given to the Petitioner.
Administrative decisions must be reasoned and justified; failure to provide such reasoning can lead to judicial intervention.
The termination of the petitioner's dealership was valid as the petitioner was afforded sufficient opportunity of hearing, the order of termination was not unreasoned or cryptic, the authority of SGS....
Termination of dealership without adhering to procedural guidelines and principles of natural justice is unlawful.
The admission of tampering with locks justified the blacklisting and imposition of damages, and comparisons with other cases did not support the appellant's claim of discrimination.
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