IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
NUPUR BHATI, J.
Abhishek Agrawal S/o Shri Suresh Agrawal – Appellant
Versus
Bharat Petroleum Corporation Limited (BPCL) – Respondent
S.B. Civil Writ Petition No. 2932 of 2024
Decided on : 22-03-2024
Registration - LPG Distributorship - Indian Registration Act 1908, Sections 17, 18; Power of Attorneys Act 1882, Section 1A - The court interpreted the provisions regarding the registration of power of attorney and lease deeds, concluding that the petitioner did not meet eligibility criteria due to late registration of lease deeds.
Fact of the Case:
The petitioner applied for an LPG distributorship after being declared a successful candidate. However, the respondent corporation rejected the application citing the late registration of lease deeds and the requirement for registered power of attorney.
Finding of the Court:
The court found that the power of attorney did not require registration and that the petitioner failed to meet the eligibility criteria due to the late registration of lease deeds, thus upholding the respondent's decision.
Issues: Whether the petitioner met the eligibility criteria for LPG distributorship given the registration status of the lease deeds and power of attorney.
Ratio Decidendi: The court held that the power of attorney does not require compulsory registration under the Indian Registration Act, but the petitioner failed to meet the eligibility criteria due to the late registration of lease deeds.
Result: The writ petition is dismissed.
JUDGMENT :
NUPUR BHATI, J.
1. Though the matter is listed in the fresh category, However on joint request of the counsel for the parties the matter is being heard today itself.
2. This writ petition has been filed under Article 226 of the Constitution of India with the following prayers:-
ii) By an appropriate writ, order or direction, the respondents be directed to accept the land submitted for the purposes of establishment of the Godown and Showroom for the purposes of LPG Distributorship to be granted by the respondent Corporation in favour of the petitioner with all consequential benefits and directions.
iii) By an appropriate writ, order or direction, the respondents be issued final Letter of Intent (LOI) in favour of the petitioner to start the LPG Distributorship on the location advertised by the respondent at Bikaner in pursuant to the Advertisement issued by the respondent corporation dated 23rd March, 2023 (Annex-1).”
3. Brief facts of the case are that an advertisement (Annexure-1) was issued and published in Rajasthan Patrika by the respondents for allotment of LPG Distributorship at Bikaner under open Category on 23.03.2023 for which the petitioner applied online vide application (Annexure-2).
4. Thereafter vide communication dated 1.09.2023 (Annexure-3) the petitioner was informed that he is declared as a successful candidate and selected for LPG distributorship after the draw of lots conducted on 31.08.2023. Thereafter a rent deed was executed on 30.05.2023 (Annexure-4) wherein the petitioner had taken on rent the godown owned by Tej Bhan S/o Shri Hukam Chand and Neelam Nagpal W/o Rakesh Nagpal through the power of attorney holder Tej Bhan S/o Shri Hukam Chand, vide power of attorney dated 10.1.2011 (Annexure-5) which was subsequently renewed on 24.05.2023.
5. Furthermore the petitioner rented a land of 4000 Sq ft at Jai Narain Vyas Colony, Bikaner from Shri Anil Kumar Gupta S/o Shri Lal Chand Gupta in whose favour the land was released by his sisters Smt Kavita Goyal and Neelam Bansal through registered release deed dated 23.11.2021 (Annexure-6). The release deed was executed through power of Attorney holder Smt Usha Rani W/ o Shri Anil Kumar Gupta vide special power of attorney dated 10.11.2021 (Annexure-6)
6. After submission of documents, a communication dated 28.12.2023 (Annexure-7) was issued by respondent corporation wherein it was communicated to the petitioner to produce registered copy of the Power of Attorney dated 10.11.2021 which was executed by Smt Kavita Goyal and Neelam Bansal in favour of Usha Rani W/o Shri Anil Kumar Gupta and the registered copy of the power of attorney dated 10.1.2011 executed by Smt Neelam Nagpal in favour of Shri Tej Bhan within 7 days.
7. Thereafter the petitioner wrote a mail dated 5.1.2023 (Annexure- 8) to the respondents attaching letters, rules and regulations of office of Sub Registrars. Thereafter another communication and an order was passed on 6.02.2024 (Annexure-9) stating therein that the showroom and godown are through registered lease deeds however, power of attorneys are not registered and thus the godown and the showrooms are not meeting the eligibility conditions as stipulated in the Manual and Brochure and therefore, the petitioner should provide alternate land details within a period of 15 days from the date of the communication failing which the candidature of the petitioner shall be cancelled.
8. Thereafter the petitioner sent a communication (Annexure-10) and submitted the details and the letter of registration department which stated therein that the provisions contained in section 18 of the Indian Registration Act 1908, it is clearly mentioned that if special power of attorney is issued then, there is no requirement of the same to be registered an
The court established that while power of attorney registration is not mandatory, compliance with eligibility criteria regarding lease deed registration is essential for distributorship.
The requirement for registration of a lease deed by a specified cut-off date is a critical eligibility criterion for LPG distributorship applications, and the execution date alone does not suffice to....
Section 105 of Transfer of Property Act, 1882 read with Section 17(1)(d) and Section 49 of Registration Act, 1908 which specifically mandates that a lease deed for a period exceeding one year is comp....
The main legal point established in the judgment is the significance of meeting the eligibility criteria, particularly the requirement of ownership or registered lease deed for the plot of land offer....
The applicant must fulfill the eligibility criteria at the time of application, and decisions regarding forfeiture must be justified and not arbitrary.
Documents submitted for LPG distributorship must meet ownership requirements as defined in the Brochure; notarized lease deeds do not suffice under the Registration Act.
Adherence to specified eligibility criteria, particularly the requirement of a registered lease deed for the plot of land offered for LPG distributorship, is crucial for consideration of candidature.
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