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2024 Supreme(Gau) 505

IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
Manish Choudhury, J.
Sri Mongve Rongpi, S/o Sri Jayanta Rongpi - Petitioner
Versus
The Indian Oil Corporation Limited, New Delhi and ors. – Respondents
Writ Petition (C) No. 2291 of 2023
Decided On : 20-04-2024

Advocates:
Advocate Appeared:
For the Petitioner:Mr. B.D. Das, Senior Advocate, Mr. H.R. Das, Advocate
For the Respondent:Mr. M.K. Choudhury, Senior Advocate, Mr. P. Bharadwaj, Advocate, Mr. R.S. Ronghang, Standing Counsel

The court affirmed that eligibility for retail dealership under the guidelines excludes candidates with ongoing legislative roles, emphasizing public interest and operational integrity.

Headnote:(A) Constitution of India - Article 226 - Writ Petition concerning Retail Outlet Dealership - The petitioner, being a nominated member of the Karbi Anglong Autonomous Council, sought to secure a dealership. The respondent IOCL reiterated guidelines preventing candidates who maintain any employment, including elected positions, from receiving the dealership, citing lack of eligibility. The petitioner contested the decision claiming his nominal role and relinquishment of salary. The court affirmed that legislative roles imply responsibilities that inhibit eligibility for the dealership due to neutrality and efficiency requirements underscored in the IOCL guidelines. (Paras 1, 3, 5, 33, 40)

(B) The court ruled that appointment as a dealer mandates full focus and commitment to dealership operations, rendering any other concurrent duties incompatible. The decision of the IOCL to halt the dealership process for the petitioner remained lawful and rational, prioritizing public interest. (Paras 28, 34, 40)

(C) The principles of fair treatment in the allocation of State largesses emphasize that every application should undergo evaluation based on existing guidelines alone. (Paras 28, 32, 40).

Facts of the case:
The petitioner applied and was selected for a retail dealership, but his nomination to the Council later led to query over eligibility based on the IOCL's non-employment provision.

Findings of Court:
The court validated the IOCL’s standing to halt the application, affirming it was within their rights to ensure suitable management for the dealership, thus maintaining public interest.

Issues: Did the petitioner’s council membership disqualify him from the dealership?

Ratio Decidendi: The court justified that legislative roles impose limitations on private enterprise compatibility, validating the IOCL decision as reflective of necessary prudence and business best practices in public service.

Result: Writ petition dismissed.

Table of Content
1. background of petition for dealership (Para 1 , 2 , 3 , 4)
2. contentions regarding the implications of being a member of the karbi anglong autonomous council on eligibility. (Para 5)
3. arguments on eligibility and employment status (Para 6 , 7 , 8)
4. court's analysis of eligibility criteria (Para 9 , 10 , 26 , 34)
5. petitioner sought to challenge the iocl's refusal to process his dealership application. (Para 20)
6. principles on state largesse and contract (Para 28 , 29 , 30)
7. court affirms the interpretation of eligibility as per iocl's guidelines. (Para 36 , 39)
8. writ petition dismissed (Para 41)

The petitioner has instituted the instant writ petition under Article 226 of the Constitution of India seeking setting aside and quashing of a Letter bearing no. TDO/R/RO Dealership/Diphu Town/731 dated 17.02.2023 issued by the respondent no. 2 on behalf of the respondent Indian Oil Corporation Limited [IOCL] and for a direction in the nature of mandamus to the respondent authorities in the Indian Oil Corporation Limited [IOCL] to award the Retail Outlet Dealership at the location, Diphu Town Not on NH/SH, District – Karbi Anglong to the petitioner.

2. The respondent no. 1, Indian Oil Corporation Limited [IOCL], a Public Sector Oil Marketing Company [OMC], published an Advertisement on 25.11.2018 inviting applications from eligible persons for appointment as a dealer in respect of a proposed Retail Outlet Dealership for the location at Diphu Town Not on NH/SH, District – Karbi Anglong [hereinafter referred to as ‘the subject-location’, for easy reference] in the State of Assam. The Advertisement mentioned that Retail Outlet Dealership would be awarded to a candidate belonging to the Scheduled Tribe category. The petitioner herein, an MBBS Degree-holder, responded to the said Advertisement by submitting his application on-line along with all the necessary supporting documents, and his application was registered as Application Ref. no. 15455382257935.

3. It was on 04.07.2021, the petitioner was intimated that he had been qualified for the Draw of Lots for selection of Retail Outlet Dealership for the subject-location. The petitioner was requested to be present personally along with the documents, indicated therein, at the address mentioned on 14.07.2021 for the Draw of Lots. However, the Draw of Lots, scheduled on 14.07.2021, got deferred and the same was re-scheduled on 27.08.2021 at Hotel Royal Highness, Khaitan Plaza, Tinsukia, which fact was intimated to the petitioner by a Communication dated 17.08.2021. The Draw of Lots scheduled on 27.08.2021 was again deferred and finally, the Draw of Lots was held on 25.08.2022 at the venue : Jubilee Hall, IOCL Township, Noonmati, Guwahati. Subsequent to the Draw of Lots held on 25.08.2022, the petitioner was informed about the result of the Draw of Lots for Retail Outlet Dealership at the subject-location by a Communication dated 26.08.2022. By the Communication dated 26.08.2022, the petitioner was informed that in the Draw of Lots held on 25.08.2022, the petitioner was declared as selected. It was further informed that the same was only a preliminary intimation towards selection of the petitioner for the Retail Outlet Dealership at the subject-location and the award of dealership would be subject to compliance of the terms and conditions of the IOCL. After his selection in the Draw of Lots, the petitioner was informed by a Communication dated 11.11.2022 that the Land Evaluation Committee [LEC] would visit the site offered by the petitioner at the subject-location for inspection. The petitioner was asked to be present personally at the site along with the relevant documents. After the task of the Land Evaluation Committee [LEC] was over, the petitioner was informed by another Communication dated 28.11.2022 to the effect that the officers of the IOCL would pay a visit on 08.12.2022 for carrying out Field Verification of Credentials [FVC] and the petitioner was asked to be p

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