IN THE HIGH COURT OF DELHI AT NEW DELHI
Purushaindra Kumar Kaurav, J.
Think Gas Ludhiana Private Limited – Appellant
Versus
Petroleum & Natural Gas Regulatory Board Through The Secretary & Ors. – Respondents
W.P.(C) 1370 of 2023 and CM APPLs.5100 of 2023,5101 of 2023
Decided On : 21-02-2023
Petroleum & Natural Gas Regulatory Board - Challenge to order dated 13.01.2023 - PNGRB (Meetings of Board) Regulations, 2007 - Act, 2006, Section 25, Section 19(2), Section 13(1), Section 13(3), Section 11(c) - The court considered the rejection of EOIs and applications by the respondent No.1-Board, emphasizing the principles of natural justice and the procedure to be followed by the Board. The court set aside the communication dated 13.01.2023 and the consequential orders dated 02.02.2023 and 09.02.2023, restoring the applications for consideration by the respondent No.1-Board.
Fact of the Case:
The petitioner sought to challenge the order dated 13.01.2023, passed by the Secretary of respondent No.1 - Petroleum & Natural Gas Regulatory Board (PNGRB), regarding the rejection of EOIs and applications. The petitioner also prayed for various other reliefs, emphasizing the need for compliance with PNGRB (Meetings of Board) Regulations, 2007 and the principles of natural justice.
Finding of the Court:
The court found that the rejection of EOIs and applications by the respondent No.1-Board without appropriate hearing and in violation of the principles of natural justice was procedurally incorrect. The court set aside the communication dated 13.01.2023 and the consequential orders, restoring the applications for consideration by the respondent No.1-Board.
Issues: The issues revolved around the rejection of EOIs and applications by the respondent No.1-Board, the compliance with PNGRB (Meetings of Board) Regulations, 2007, and the principles of natural justice.
Ratio Decidendi: The court emphasized the need for the respondent No.1-Board to follow the principles of natural justice and the prescribed procedures in considering the petitioner's EOIs and applications, setting aside the communication dated 13.01.2023 and the consequential orders.
Final Decision: The court directed the respondent No.1-Board to consider and decide the applications in accordance with law, after providing an opportunity for hearing to all stakeholders, and allowed the petitioner to file appropriate amendments if desired. The court left all issues open to be adjudicated on merits by the respondent No.1-Board.
JUDGMENT
Purushaindra Kumar Kaurav, J. (Oral)
1. This petition essentially seeks to challenge the order dated 13.01.2023, passed by the Secretary of respondent No.1 - Petroleum & Natural Gas Regulatory Board (PNGRB)/Board with the further direction to place its two Expression of Interests ('EOIs') and two applications before the Board for its consideration. The petitioner has also prayed for various other ancillary and consequential reliefs. For the sake of clarity, the entire relief clause is reproduced as under:
"In the facts and circumstances of the case, it is most respectfully prayed that this Hon'ble Court be pleased to:
a) Issue a writ or writs, order or direction as may be considered appropriate to quash and setting aside of the PNGRB Letter dated 13.01.2023 issued by the Secretary of PNGRB and direct PNGRB to place the two EOIs dated 03.06.2020 and the two applications that were the subject matter thereof before the Board for its consideration, once it is duly constituted in a meeting held in accordance with PNGRB (Meetings of Board) Regulations, 2007, particularly Regulation 11 thereof;
b) Issue a writ or writs, order or direction as may be considered appropriate to require compliance with Regulation 11 PNGRB (Meetings of Board) Regulations, 2007 by PNGRB and hold that the members who are former Directors of Respondent No. 3/GAIL (India) Limited have to comply with PNGRB (Meetings of Board) Regulations, 2007 and not participate in matters which directly or indirectly relate to GAIL (India) Limited;
c) Issue a writ or writs, order or direction as may be considered appropriate to quash PNGRB Letter Ref PNGRB/Monitoring/2/NGPL-DBNPL/(4)/2012 dated 28.02.2020 issued to GAIL (India) Limited by PNGRB and which was communicated to the Petitioner only on 30.09.2022;
d) Declare that the authorization Ref Infra/CGD/Bid/R- 3/7/GA/Jalandhar/01/2013 dated 06.09.2013 for 355 sq. km area of Jalandhar city to "Jay Madhok Energy Private Limited led Consortium" lapsed and ceased to be valid on 08.08.2018 when Respondent No. 4/Jay Madhok Energy Private Limited and Respondent No. 5/Jay Madhok Holdings Private Limited were struck off and dissolved which two entities constituted the successful consortium that had ceased to exist on 08.08.2018;
e) Declare that the authorization Ref. Infra/CGD/Bid/R- 3/6/GA/Ludhiana dated 25.06.2015 for 211 sq. km of Ludhiana city to "Jay Madhok Energy Private Limited led Consortium" lapsed and ceased to be valid on 08.08.2018 when Respondent No. 4/Jay Madhok Energy Private Limited and Respondent No. 5/Jay Madhok Holdings Private Limited were struck off and dissolved;
f) If Prayers (d) and (e) above are granted then direct Respondent No. 1/PNGRB that: (i) the area of 211 sq.km. comprising of Ludhiana city; and (ii) the 355 sq.km. area of Jalandhar city covered by the respective authorizations, be placed for competitive bidding;
g) Direct Respondent No. 2/Union of India to appoint the Chairman and one other Member to PNGRB who should not be from GAIL (India) Limited, so as to duly and completely constitute PNGRB; and
h) pass any other or further orders as this Hon'ble Court may deem fit and proper in the circumstances of the case in favour of the Petitioner."
2. This petition was taken up for hearing by the Coordinate Bench of this court on 02.02.2023. However, the same was directed to be listed before another Bench subject to directions by Hon'ble the Chief Justice. Accordingly, the matter was placed before this court on 06.02.2023.
3. When this matter was taken up for hearing on 06.02.2023, this court directed for the issuance of notice to the respondents. While noting the submissions advanced by learned senior counsel appearing on behalf of the petitioner, this court directed that in the meantime, any proceedings before respondent No.1/Board shall remain subject to the outcome of the instant proceedings. The matter was thereafter taken up for hearing on 14.02.2023 and on 16.02.2023. The parties filed their res
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