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IN THE HIGH COURT OF ALLAHABAD
Devendra Kumar Arora, Alok Mathur, JJ.
M/S. Chaudhary Filling Point, Kazipur Thru Its Prop. And Anr. - Petitioners
Vs.
State of U.P. Thru Prin. Secy. Food & Civil Supplies And Ors. - Respondents
Misc. Bench No. - 27043 of 2018
Decided On : 30-01-2019
Constitution of India,1950 – Article 226 – Termination from service – Expert opinion – Questioning the correctness and validity of the order passed by the Executive Director – Challenged – Held, Entire inquiry proceedings against petitioner were vitiated on ground that the Experts opinion was obtained subsequent to the order of termination – In the finding, the Appellate Authority has also stated that “this ground of termination is not more valid”, but still proceeded to hold the petitioner guilty on the basis of the inspection report – The appellate order is clearly, perverse and irrational in light of the reports submitted by the OEM, wherein they did not confirm any finding as mentioned in the inspection report – Therefore, the termination order also suffers from infirmities and is arbitrary being based on the inspection report which could not have been made the basis of proceedings against the petitioner in absence of any Experts opinion confirming the said findings – Thus the termination order as well as the appellate order are liable to be set-aside – Impugned orders cannot be sustained legally – Petition allowed. (Para 46 and 47)
Facts of the case:
Petitioner, who was a retail petrol pump dealer of Indian Oil Corporation Limited [ in short referred to as the ‘IOCL’] has filed the instant writ petition questioning the correctness and validity of the order dated 14.6.2018 passed by the Executive Director (Retail) Indian Oil Corporation Ltd. Mumbai (opposite party no.3) dismissing the appeal preferred by the petitioner against the order dated 14.7.2017 whereby the dealership of the petitioner was terminated.
Findings of the case:
Entire inquiry proceedings against petitioner were vitiated on ground that the Experts opinion was obtained subsequent to the order of termination – In the finding, the Appellate Authority has also stated that “this ground of termination is not more valid”, but still proceeded to hold the petitioner guilty on the basis of the inspection report – The appellate order is clearly, perverse and irrational in light of the reports submitted by the OEM, wherein they did not confirm any finding as mentioned in the inspection report – Therefore, the termination order also suffers from infirmities and is arbitrary being based on the inspection report which could not have been made the basis of proceedings against the petitioner in absence of any Experts opinion confirming the said findings – Thus the termination order as well as the appellate order are liable to be set-aside – Impugned orders cannot be sustained legally.
Result: Petition allowed
1. Heard Sri. Upendra Mishra, learned Counsel for the petitioner and Sri. Manish Jauhari, Counsel for the Indian Oil Corporation as well as learned Standing Counsel.
2. Petitioner, who was a retail petrol pump dealer of Indian Oil Corporation Limited [ in short referred to as the ‘IOCL’] has filed the instant writ petition questioning the correctness and validity of the order dated 14.6.2018 passed by the Executive Director (Retail) Indian Oil Corporation Ltd. Mumbai (opposite party no.3) dismissing the appeal preferred by the petitioner against the order dated 14.7.2017 whereby the dealership of the petitioner was terminated.
3. In short, the facts of the case are that M/s Chaudhary Filling Point is a proprietorship firm of which petitioner no.2- Shamshad Ali Chaudhary is the proprietor. It is said that the petitioner was alloted a Retail Outlet/Petrol Pump dealership (KSK) at Kazipur, district Barabanki and in furtherance of the same, a dealership agreement was executed between the petitioner and IOCL on 12.9.2012. The dealership agreement dated 12.9.2012 was for a period of five years with effect from 30.5.2012 and continued thereafter with regular extensions.
4. It has been pointed out that in order to ensure that the oil marketing companies work in a systematic manner, the Government of India has issued/ promulgated Marketing Discipline Guidelines (MDG), 2012 with effect from 8.1.2013 which have been made applicable on all public sector oil marketing companies in order to provide for standards/procedure which are to be adopted by the Oil Marketing Companies and the Retail Outlets/Petrol Pump in daily/regular operations. These executive instructions are to be followed mandatorily and any violation thereof either by the Oil Marketing Companies or the retail outlets is impermissible.
5. According to the petitioner, there were three Dispensing Units installed at the petitioner’s Petrol Pump. One unit is of Midco Company which dispenses Petrol while the other two units i.e. one of L & T company and other Double Nozzle unit of Gilbarco company dispenses diesel.
6. During the monthly visit, the Service Engineer of L & T and Gilbarco, one Shri Kapil Jain inspected the Dispensing Units. The said Engineer certified that the Dispensing Unit of L & T Machine is working properly and all the seals pertaining to the said machines are intact. So far as the Gilbarco Double Nozzle Machine is concerned, one of its Nozzle was not functioning properly and therefore, the petitioner had registered an on-line complaint with Gilbarco, which was attended by the Service Engineer of the Gilbarco, who rectified/repaired and furnished a report in this behalf on 2.6.2017.
7. It is said that on the same day i.e. 2.6.2017, a joint inspection team comprising officers of the District Supply Office, Senior Inspector (W & M), Hindustan Petroleum Officials and Engineers of equipments manufacturers inspected the Petrol Pump of the petitioner and after examining all the three dispensing units, prepared an inspection report, which reads as under:-
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