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2016 Supreme(Jhk) 1096

IN THE HIGH COURT OF JHARKHAND AT RANCHI
D.N. PATEL And RATNAKER BHENGRA, JJ.
Onkar Prasad son of Sri Lalu Sao - Petitioner/Appellant
Versus
The Union of India, represented through Secretary to the Govt. of India, Ministry of Petroleum and Natural Gas, P.O.+P.S. New Delhi, New Delhi - Respondents
L.P.A. No. 224 of 2015
Decided On : 14-06-2016

Advocates Appeared:
For the Appellant :M/s Anil Kumar, Sr. Advocate, Ashutosh Kr. Singh, Adv. Sidhant, Adv., Chandana, Adv.
For the Respondents:M/s V. Shivnath, Sr. Advocate, D.N. Gupta, Advocate

The termination of distributorship must be based on valid grounds related to the show-cause notice, and parties cannot take advantage of their own mistakes.

Headnote:

Misrepresentation - Liquefied Petroleum Gas Distributorship - Clause 27(i), 27(l), 28 - The court quashed the termination order of distributorship dated 10th September, 2013 passed by the Indian Oil Corporation and allowed the appeal.

Fact of the Case:

The appellant applied for Liquefied Petroleum Gas distributorship, stating the location of the godown as Village Rajrom, Police Station Kuru, District Lohardaga. The distributorship was terminated on the ground that the godown was not situated within village Kuru.

Finding of the Court:

The court found that the termination order was beyond the show-cause notice and that the appellant was not given an opportunity to change the location of the godown as per the verification format. The court also noted that the termination was based on clauses unrelated to the show-cause notice.

Issues: Misrepresentation of the location of the godown, violation of distributorship agreement clauses, and unequal bargaining power.

Ratio Decidendi: The court held that the termination was unjustified as the appellant was not given an opportunity to rectify the location of the godown and that the termination was based on clauses unrelated to the show-cause notice.

Final Decision: The court quashed the termination order and allowed the appeal, directing the Indian Oil Corporation to supply Liquefied Petroleum Gas to the appellant for distribution.

JUDGMENT :

D.N.Patel, J.

1. This Letters Patent Appeal has been preferred against the judgment and order dated 26th March, 2015 delivered by the learned Single Judge in W.P.(C) No. 7084 of 2012, whereby the petition preferred by this appellant was dismissed and the order dated 10th September, 2013 of termination of the Indane distributorship Agreement dated 22nd March, 2012 for distribution of Liquefied Petroleum Gas was held as a valid one and hence the original petitioner has preferred this Letters Patent Appeal.

2. FACTUAL MATRIX

An advertisement was issued in the year 2010 under the 'Rajiv Gandhi Gramin L.P.G. Vitarak Yojana' for the Indane distributorship of Liquefied Petroleum Gas for several places in the State of Jharkhand including Kuru, District Lohardaga for Open category. This advertisement is at Annexure 1 to the memo of this Letters Patent Appeal.

An application was preferred by this appellant in proper format (Annexure 2 to the memo of this Letters Patent Appeal) in which it has been categorically stated by this appellant that the location of the Rajiv Gandhi Gramin Liquid Petroleum Gas Vitaran is at Kuru. It has also been stated by this appellant in the said application that the location of the land for the LPG Godown is at Village Rajrom, P.S. Kuru, District Lohardaga. Even survey number was given and map was also attached. Aforesaid information was furnished in column No. 9 of the said application at Annexure 2. Thus, neither there was any misrepresentation by this appellant about the location of the land for the LPG Godown nor any fraud was played by this appellant. The facts stated in the application (Annexure 2) made by this appellant was duly verified by the Respondent No.2- Indian Oil Corporation Limited. Format of the Field Verification Report is at Annexure 5 to the memo of the Letters Patent Appeal. Looking to the Clause 9 of the said format at Annexure 5, it appears that physical verification of the land for the godown was to be done by the officers of the Respondent No.2, Indian Oil Corporation Limited and in case the land was not found suitable then it could have been changed by the applicant so as to make him eligible for the distributorship. It appears that the Indian Oil Corporation, on field verification, never found the land for the godown unsuitable because had there been any suggestion by the Indian Oil Corporation for any other location of the land for the godown, this appellant would have changed the location of the Godown, but, even after verification never such objection was raised by the Respondent No. 2-Indian Oil Corporation Ltd.

Thereafter, distributorship was granted to this appellant on 22nd March, 2012. This appellant continued with the LPG Distributorship and later on, after show cause dated 31st October, 2012 was issued by the Indian Oil Corporation, it was terminated on 10th September, 2013 vide order at Annexure 6 to the memo of this Letters Patent Appeal on the ground that the reply to the show-cause is not satisfactory and the godown ought to have been situated at Village Kuru, whereas the godown of this appellant is at village-Rajrom in the Block-Kuru, District Lohardaga and it has also been stated in the termination order that there is a violation of Clause No. 27(i) of the agreement dated 22nd March, 2012.

Initially against the show-cause dated 31st October, 2012, W.P.(C) No. 7084 of 2012 was preferred and later on order of termination dated 10th September, 2013 was also challenged by this appellant in the same Writ Petition, i.e. W.P.(C) No. 7084 of 2012 vide I.A. No. 7335 of 2012 and as the writ petition was dismissed by the learned Single Judge vide order dated 26th March, 2015, original petitioner has preferred this Letters Patent appeal.

3. ARGUMENTS CANVASSED BY THE APPELLANT (ORIGINAL PETITIONER)

Counsel for the appellant-original petitioner submitted that in pursuance of the public advertisement for the distributorship of L.P.G. Gas (Indane)(Annexue 1 to the memo of this L















































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