2002 Supreme(Jhk) 1213
Jharkhand High Court
S.J.Mukhopadhaya, J.
Hirak Point, Dealer And Bharat Petroleum Corp.Ltd. - Appellant
Versus
Bharat Petroleum Corp.Ltd. - Respondent
WPC 6153 Of 2002
Decided On : 4 December, 2002
Headnote:Government Contract – Petroleum dealership – allegation of adulteration in petrol – for supplying sub-standard product by corporation, petitions can not be subjected to task – petition allowed. (Paras 6 to 8)
1. The petitioner a petroleum dealer has challenged the order dated 9th November, 2002 passed by the Territory Manager (Retail) Dhanbad whereby and whereunder he has been pleased to suspend the sales and supply of all products to the petitioners retail outlet for a period of 30 days and further levied fine of Rs. 20.000/-.
2. According to petitioner the respondents themselves supplied sub-standard materials and there was no adulteration made by petitioner in the petroleum products.
3. On the other hand, according to the respondents certain items having been found below the required standard in the petitioners tank the impugned order of suspension was issued and fine was levied.
4. It appears that the respondents initially issued a show- cause notice on 31st October, 2002 which reads as follows :
"By HAND DELIVERY
DHN/HIRAK POINT M/s. HIRAK POINT
DEALER-M/S BHARAT PETROLEUM CORP. LTD., DHAIYA, DHANBAD
Dear Sir,
your Dealership Affairs : Failure of MS Sample--We refer to the MS samples drawn from the underground tank of your outlet by our Sales Officer, Dhanbad, on 16.9.2002. While the samples of HSD/LUBS have passed, the sample of MS drawn from the underground tank has been tested (confirming of the test method IS : 1448) by our laboratory and the following are the observations :
1. The sample of MS fails to meet specifications of RON (RESEARCH OCTANE NO.) IS-1448 standards. The eratil outlet sample also is not within the reproducibility limit of last supplied T/L sample. From the test report we observed that the RO sample failed in terms of "Research Octane Number" under test method IS : 1448 P-27 beyond permissible limits.
Please note that failure of MS sample of your outlet is considered as a serious violation of the Dispensing Pump and selling licence agreement dated 23.1.1995 signed between you and this corporation, the relevant clause of which is mentioned below.
Clause 10(g) : "Not to adulterate the petroleum products supplied by the company and at all times to take all reasonable precautions to ensure that the Motor Spirit or H.S.D. is kept free from water, dirt and other impurities and served from the outfit in such condition.
In view of the above, please let us have your explanation for such failure of MS sample drawn from your retail out let within seven days from the receipt of this letter failing which action in line with DPSL agreement will be initiated against your dealership for violation of the agreement clauses mentioned above. Copy of the test report is enclosed herewith for your instant reference.
Please acknowledge receipt of this letter. Thanking you Yours faithfully For Bharat Petroleum Corpn. Ltd.
Ashok Pandey Territory Manager (Retail) Dhanbad."
5. The petitioner while denied the allegation vide letter dated 7th November, 2002 mentioned that there was no question of adulteration of the products. Further he mentioned that the product may not be meeting the norms for the reasons shown at paragraph 2 and 3 to the letter as quoted thereunder :
Though, there is a slight variation in the RON numbers of retention samples and the samples taken from our under-ground tank, we can only say that utmost care was taken while taking the T/T samples. However, there is a chance that the retention samples might not be correctly representing the entire batch of supply, which might have led to slight difference in RON Nos. of retention samples and underground tank samples. Furthermore, we have decanted 3000 liters of MS in the underground tank with a stock of approximately 12 kls. The product supplied before that has not been tested and there might be possibility that the influence of earlier products might have led to the difference in octane Nos. of our sample (80) viz. a viz retention sample (85). This, in our opinion, could be the only reason, why the retail outlet sample is not within the reproducibility limit of last supplied T/L sample. At the cost of repetition, we would like to inform you that we do not have any method whats