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ANJANI KUMAR MISHRA, JAYANT BANERJI
Kisan Sewa Kendra – Appellant
Versus
Union Of India – Respondent
JUDGMENT :
(Per: Hon’ble Jayant Banerji, J.)
Order in Writ-C No. 32973 of 2018
1. Heard Shri U.K. Saxena, learned Senior Advocate assisted by Mrs. Swati Agrawal Srivastava for the petitioner. Shri Devi Shanker Shukla, learned counsel appears for the respondent nos. 2 and 3 (Indian Oil Corporation). Learned Standing Counsel, Shri Ankur Tandon, appears for the respondent no. 4- District Supply Officer.
2. Under challenge in the present petition is an order dated 7.7.2017 passed by the respondent no. 4- District Supply Officer, Ghazipur, which is a suspension order-cum- show cause notice issued to the petitioner to show cause why the license granted under the Motor Spirit and High Speed Diesel (Regulation of Supply & Distribution and Prevention of Malpractices) Order, 2005[Order, 2005] be not cancelled. Further, under challenge is the order dated 16.10.2018 passed by the respondent no. 4 cancelling the license No. 68 granted to the petitioner for sale of diesel from the retail outlet.
3. It appears from the record that on 24.5.2017, an inspection was done by a team of officers in which it was found that in the dispensing units the pulsars of four nozzles, which were examined after breaking
The court upheld the cancellation of a diesel sale license due to confirmed tampering of dispensing units, establishing the dealer's responsibility for maintaining equipment integrity.
The presence of unauthorized fittings in a dispensing unit constitutes a breach of the dealership agreement, justifying termination of the dealership.
The court emphasized the necessity of adhering to principles of natural justice in administrative actions, ruling that reliance on undisclosed evidence rendered the termination of the dealership arbi....
The judgment established that administrative decisions based on misreading of documents, ignorance of evidence, and without recording reasons are arbitrary and violative of principles of natural just....
Consideration of the petitioner's defense and the expert opinion of the OEM is crucial in dealership termination cases to ensure compliance with principles of natural justice.
Judicial review in technical matters is limited; courts should defer to expert findings unless proven arbitrary or unreasonable.
Termination of dealership without adhering to procedural guidelines and principles of natural justice is unlawful.
The court established that tampering with the dispensing unit, deficiency in fuel discharge, and failure to report the shortfall constituted a critical irregularity justifying dealership termination.
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