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IN THE HIGH COURT OF GAUHATI (IMPHAL BENCH)
T. Nandakumar Singh, J.
All Manipur Petroleum Products Transporters Association and Ors.
Vs.
State of Manipur and Ors.
W.P. (C) Nos. 7758 and 1732 of 2001
Decided On: 17.12.2004
AGREEMENT - PROMISSORY ESTOPPEL - STATE GOVERNMENT - LIABILITY - PUBLIC INTEREST: The State Government is barred by the Principle of Promissory Estoppel from refusing to comply with their promise made in the agreements dated 10.1.2001 and 30.1.2001, and also that the Minister (FCS), Government of Manipur can act on behalf of the State Government and took the decision for the State Government in the interest of the Public and can enter into agreement with the Petitioners.
Fact of the Case:
The State of Manipur is a landlocked State and the requirements of the State for various petroleum products depend solely on the petroleum products transported by the oil tankers through the National Highway No. 39. The Petitioners are associations formed and constituted by the oil transport contractors and owners of oil trucks of the State of Manipur for the welfare and development of its members. The members of the Petitioners are the only transporters of various kind of petroleum products from the various part of Assam to the State of Manipur. On 31.12.2000, one oil truck/oil tanker of one of the members of the Petitioners was burnt down by the suspected underground extremists in between Tadubi and Mao on the National Highway No. 39. After the said incident, the members of the Petitioners stopped lifting and transporting the petroleum products to Manipur. As a result thereof, the residents of Manipur suffered like anything because of the non-availability of petroleum products which are required very much for day-to-day life. In the interest of public, the then Hon'ble Minister (FCS), Manipur convened a meeting on 10.1.2001 with the representatives of Petitioner No. 1 so as to procure the most needed petroleum products for the residents of the State of Manipur. After serious deliberations, an agreement (Annexure-A/3 to the writ petition) was executed between the Hon'ble Minister (FCS), Government of Manipur and the representatives of the Petitioners on 10.1.2001. Again, on 23.1.2001, 9 (nine) loaded oil tankers, i.e. 6 (six) petrol tankers, 2 (two) HSD (diesel) and 1 (one) SK Oil, were again set ablaze by the suspected underground militants on National Highway No. 39 near Karong, Senapati District, Manipur. Though the said nine oil tankers were burnt down inspite of the promises and the assurances made by the Government of Manipur for protection of the oil tankers, the Govt. of Manipur did not provide relief or compensation to the aggrieved members of the Petitioners, and in other words, the State Govt. failed to carry out their promises and assurances mentioned in the said agreement dated 10.1.2001. Therefore, the Petitioners commenced indefinite strike from 23.1.2001 and there was no transportation of petroleum products for the State of Manipur, as a result thereof, the general public suffered seriously In order to save the public, more particularly the residents of Manipur from the intolerable hardship due to the non-availability of petroleum products in the State of Manipur, the IOC had an informal meeting with the representatives of the Petitioners and after consideration of the serious difficulties faced by the oil tankers, the IOC sent the letter dated 25.1.2001 to the Chief Secretary, Government of Manipur appraising the demands of the Petitioners' association, i.e., (i) full compensation should be paid for the nine burnt down tankers, (ii) Highway protection force along the NH-39 (Imphal to Dimapur) and (iii) for assurance that the State Govt. should be responsible for the loss and damaged vehicles as well as the products. As the members of the Petitioners' association were on strike demanding the demands mentioned above to the Government of Manipur, there were hue and cry from the public, day to day life of the residents of Manipur suffered like anything due to the non-availability of petroleum products. The State Government was to take up some steps to procure petroleum products from outside the State for the residents of Manipur and invited the members of the Petitioners' association for a meeting to consider the demands of the members of the Petitioners' association. Thereafter, the Government of Manipur represented by the Minister (FCS), Manipur and the representatives of the Petitioners' convened a meeting on 30.1.2001 and signed an agreement dated 30.1.2001 (Annexure-A/9 to the writ petition).
Finding of the Court:
The Court held that the State Government is barred by the Principle of Promissory Estoppel from refusing to comply with their promise made in the agreements dated 10.1.2001 and 30.1.2001, and also that the Minister (FCS), Government of Manipur can act on behalf of the State Government and took the decision for the State Government in the interest of the Public and can enter into agreement with the Petitioners.
Issues: 1. Whether the State Government is barred by the Principle of Promissory Estoppel from refusing to comply with their promise made in the agreements dated 10.1.2001 and 30.1.2001? 2. Whether the Minister (FCS), Government of Manipur can act on behalf of the State Government and took the decision for the State Government in the interest of the Public and can enter into agreement with the Petitioners?
Ratio Decidendi: 1. The decision of the Minister is the decision of the Government and executive action of the Minister or the Officer of the Government cannot be invalid only on the ground that it was not expressed in the name of the Governor according to the rules of business. 2. Further, the Minister also can represent the Government of Manipur for entering into the said agreements dated 10.1.2001 and 30.1.2001. 3. The principle of promissory estoppel could not only be used as defence but also as sword (as cause of action). 4. The State Government is to abide by the conditions and promise made by them in file said agreements dated 10.1.2004 and 30.1.2001 inasmuch as the State Government made clear and unequivocal promises in the said agreements mentioned above knowing quite well that it would be acted upon by the other parties, i.e. the present Petitioner, to whom promises are made and, in fact both the Petitioners and the State government had acted upon the said agreements. 5. The principle of promissory estoppel is applicable against the Government but the determination of applicability of promissory estoppel against the public authority of the Government hangs upon the balance of equity and public interest.
Final Decision: The writ petition is allowed and the Respondent No. 1 is directed to carry out their/its promises made in file said agreements dated 10.1.2001 and 30.1.2001. It is made clear that the Respondent No. 1 is directed to make good for the entire loss suffered by the members of the Petitioners' association, in the said incidents on 31.12.2000, 23.1.2001 and 8.3.2001 in case, MOP rejects the request of the State Government to M.O.P. to write off of the loss as a special case within 5 (five) months from the date of receipt of this judgment and order.
T.N.K. Singh, J.
1. Heard Mr. B.P. Sahu, learned Counsel for the Petitioners, Mr. R.S. Reisang, learned GA for Respondent No. 1, Mr. N. Ibotombi, learned CGSC for Respondent No. 2, Mr. N. Jotendro Singh, learned Counsel for Respondent 3(i) and Mr. L. Sahashibhushan Singh, learned Counsel for Respondent No. 3(ii).
2. The following brief in short compass will suffice for deciding the present case. The State of Manipur is the landed lock State and the requirements of the State for various petroleum products depend solely on the petroleum products transported by the oil tankers through the National Highway No. 39. The requirement of various petroleum products, i.e. M.S. (Petrol), Kerosene, High Speed Diesel (HSC) and Aero Turbine Fuel (ATF), are so important that without these petroleum products day-to-day life of the residents of Manipur are seriously affected. As there is no railway in the State of Manipur, without diesel and petrol, there cannot be transportation of the essential goods and movement of vehicles shall come to standstill. That being so, the transportation of various petroleum products by the oil tankers from outside the State of Manipur is a matter of great public importance.
3. The Petitioner No. 1 is an association formed and constituted by the oil transport contractors of the State of Manipur for the welfare and development of its members. The Petitioner No. 2 is an association formed and constituted by the owners of oil trucks of the State of Manipur for the welfare and development of its members. The members of the Petitioners are the only transporters of various kind of petroleum products from the various part of Assam to the State of Manipur.
4. On 31.12.2000, one oil truck/oil tanker of one of the members of the Petitioners was burnt down by the suspected underground extremists in between Tadubi and Mao on the National Highway No. 39. In that unfortunate incident, the said oil truck was exploded and all the petrols loaded in the said truck had been burnt down. The said incident was also published as news item in all the leading local dailies including the Imphal Free Press dated 1.1.2001. After the said incident, the members of the Petitioners stopped lifting and transporting the petroleum products to Manipur. As a result thereof, the residents of Manipur suffered like anything because of the non-availability of petroleum products which are required very much for day-to-day life. The price of essential commodities was sky high and there was no transportation of goods and also the bus services were also very seriously affected. In the interest of public, the then Hon'ble Minister (FCS), Manipur convened a meeting on 10.1.2001 with the representatives of Petitioner No. 1 so as to procure the most needed petroleum products for the residents of the State of Manipur. After serious deliberations, an agreement (Annexure-A/3 to the writ petition) was executed between the Hon'ble Minister (FCS), Government of Manipur and the representatives of the Petitioners on 10.1.2001. The said agreement was witnessed by one of the officers of the Indian Oil Corporation Ltd. and the same is quoted hereunder:
Agreement Made on 10.1.2001 between the all Manipur, Petroleum Products Transporters' Association, Imphal, Manipur For Resumption of Lifting/Transportation of Petroleum products meant for Manipur from outside state:
A meeting convened by the Minister (FCS), Manipur with the representatives of the All Manipur Petroleum Products Transporters Association, imphal was held on 10.1.2001 at 11.00 a.m. in the conference room of the Hon'ble Minister (FCS), Manipur.
In the meeting the transporters Association expressed their grievances and made certain demands for protection of petroleum products and the oil tankers while transporting the products from Khatkhati to Imphal. After a minute discussion the following agreements were arrived at:
i) The State Govt. will provide full security coverage from Imphal to Khatkhati and back for oi
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