IN THE HIGH COURT OF KERALA AT ERNAKULAM
HARISANKAR V. MENON, J.
S. BABY GIRIJA W/O LATE BABU C. – Petitioner
Versus
INDIAN OIL CORPORATION LIMITED – Respondent
W.P. (C) No. 36046 of 2024
Decided On : 12-11-2024
(A) Constitution of India - Article 226 - Writ petition challenging termination of dealership - Allegations of violation of principles of natural justice due to delay and different officers hearing and deciding the matter - Court held that institutional hearing was provided, and principles of natural justice were followed - Writ petition dismissed. (Paras 11, 12, 18, 20)
(B) Natural Justice - The principle that the one who hears must also decide is not absolute and can be deviated from in cases of institutional hearings, provided the decision-making process is fair and just. (Paras 12, 18)
Facts of the case:
The petitioner challenged the termination of her dealership by the Indian Oil Corporation, alleging violations of natural justice due to the delay in issuing the termination order and the fact that it was signed by a different officer than the one who conducted the hearing.
Findings of Court:
The court found that the termination process adhered to the principles of natural justice and was an institutional decision, thus dismissing the writ petition.
Issues: The main issues were the maintainability of the writ petition, the alleged violation of natural justice, and whether any prejudice was caused to the petitioner.
Ratio Decidendi: The court ruled that the principles of natural justice were not violated as the decision-making process was institutional, and the hearing provided was adequate.
Result: Writ petition dismissed.
JUDGMENT :
HARISANKAR V. MENON, J.
1. The petitioner, who has been engaged in trading in petroleum products pursuant to a dealership from the 1st respondent herein under the “social objective scheme” has filed the captioned writ petition challenging Ext.P2 proceedings by which the dealership should be terminated.
2. The petitioner points out in this writ petition that she was engaged as a dealer pursuant to Ext.P1 agreement dated 21.06.2002 and that she has been running the outlet thereafter. A show cause notice dated 29.09.2022 was issued to the petitioner, proposing the termination of the dealership. The essential allegations, as per the said notice, are with reference to a complaint received from a third party to the effect that the petitioner had issued a power of attorney in favour of another person, and, therefore, the petitioner was not the person running the retail outlet. To the afore notice, the petitioner submitted detailed objections dated 12.10.2022 as evidenced by Ext.P4. Later, a personal hearing was provided to the petitioner on 21.03.2023 at the State office of the 1st respondent herein. The petitioner was heard by one Sri. Sanjib Kumar Behera, Chief General Manager of the 1st respondent herein. Ext.P5 is the minutes of personal hearing. A perusal of Ext.P5 shows that the petitioner sought for ten days time to produce Income Tax Returns and related documents like balance sheets and Profit and Loss accounts in support of the stand of the petitioner that the allegations raised against her were baseless. Ext.P5 also shows that the petitioner was granted time till 01.04.2023 to submit the additional documents as prayed for by her.
3. The petitioner submits that thereafter, nothing was heard from the side of the 1st respondent herein till October 2024, when on the 10th of October, there was an attempt to barge into the outlet of the petitioner with reference to the termination of the dealership. On the next day, 11.10.2024, such an attempt was again made, points out the petitioner. On the same date, the proceedings were pasted on the premises of the petitioner, from which she noticed that the dealership was terminated. A copy of the above proceedings dated 11.10.2024 is produced as Ext.P2 in the writ petition.
4. It is challenging the proceedings at Ext.P2 that the captioned writ petition is filed by the petitioner.
5. A counter affidavit dated 23.10.2024 is filed by the respondents, essentially relying on various documents seeking to support the action taken. The counter affidavit also points out in detail the procedure followed in the case at hand.
6. I have heard Sri. Adarsh Kumar, the learned counsel for the petitioner and Sri. E.K. Nandakumar, senior counsel instructed by Smt. Ramola Nayanpally for the respondents herein.
7. Sri. Adarsh Kumar, the learned counsel for the petitioner would contend that:
(ii) There is an inordinate delay in issuing the impugned order at Ext.P2 with reference to the personal hearing as per Ext.P5. The personal hearing was conducted on 21.03.2023, and Ext.P2 order was issued on 11.10.2024, after the lapse of nearly 18 months. Therefore, the petitioner ought to have been granted an opportunity of being heard, especially when a different officer has issued Ext.P2 order.
(iii) He would point out that Ext.P2 is not served on the petitioner in a manner known to law.
Board of Directors, Himachal Pradesh Transport Corporation and Another v. K.C. Rahi
Gullappalli Nageswara Rao v. APSRTC
Harbanslal Sahnia and Another v. Indian Oil Corporation Ltd. and Others
Haryana Financial Corporation and Another v. Kailash Chandra Ahuja
Jayendra Vishnu Thakur v. State of Maharahstra and Another
Kalinga Mining Corporation v. Union of India and Others
Katherine v. Secretary to Government
Marico Industries Limited v. State of Kerala
Municipal Committee Hoshiarpur v. Punjab State Electricity Board and Ors. (2010) 13 SCC 216
N.G. Projects Limited v. Vinod Kumar Jain and others
Regina v. Race Relations Board, Ex parte Selvarajan
The court affirmed that in institutional hearings, the principle that the one who hears must also decide is not absolute, provided the decision-making process is fair.
The court affirmed that in institutional hearings, the principles of natural justice are satisfied even if the decision is made by a different officer than the one who conducted the hearing.
The court affirmed that procedural irregularities do not invalidate decisions unless actual prejudice is demonstrated, emphasizing the importance of institutional decision-making in administrative la....
The court affirmed that administrators can decide on dealership terminations without needing the same officer to issue the final decision, provided that natural justice is maintained.
Dealership - Allotment of retail outlet - Rule of exclusion of writ jurisdiction by availability of alternative remedy is rule of discretion and not one of compulsion - Inspite of availability of alt....
The main legal point established in the judgment is that the decision-making process must adhere to the principles of natural justice, and any order carrying civil consequences must be made consisten....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.