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IN THE HIGH COURT OF ALLAHABAD
ASHWANI KUMAR MISHRA, DONADI RAMESH
Mili Rai – Appellant
Versus
Union of India – Respondent
1. The petitioner is aggrieved by grant of retail outlet in favour of the private respondent vide LOI issued on 9.8.2023. It is alleged that the petitioner is also running a retail outlet of Indian Oil Corporation in the near vicinity and therefore, issuance of LOI to establish a retail outlet in favour of respondent no. 6 is impermissible.
2. The petitioner at present is a rival businessman and she is opposing establishment a new retail outlet. No provision of law or marketing guidelines have been shown under which such opening of a new petrol pump would be prohibited. Attention of this Court has been invited to the circular issued by the Government of India on 26.6.2020, in which the distance contemplated between two fuel stations is stated to be 300 metres in case of undivided carriageway and 1000 metres in respect of divided carriageway. In the writ petition, however, there is no pleading that this guideline has been violated. It is otherwise the law settled that the establishment of a new retail outlet cannot be objected to by the existing retail outlet dealer in view of the law settled by the Supreme Court in case of Jas Bhai Moti Bhai Desai Vs. Roshan Kumar , (197
Existing retail operators cannot impede new competitors without statutory grounds, promoting healthy market competition.
A competitor lacks legal standing to challenge a rival's business establishment when no legal right is infringed, reinforcing 'damnum sine injuria'.
Competitive harm does not constitute legal injury under 'damnum sine injuria'; disputes involving pure questions of fact should not be adjudicated in writ jurisdiction.
MORTH Guidelines only apply to retail outlets that are to be opened on National Highways.
The court upheld that urban fuel stations are exempt from minimum distance requirements under the NHAI guidelines to ensure public access.
The court established that IRC Guidelines are directory and do not confer a legal right to challenge the issuance of a Letter of Intent based on proximity.
The court ruled that competition in business does not justify restraining operations of a legal entity unless fundamental rights are infringed, affirming the legality of setting up fuel stations acco....
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