IN THE HIGH COURT OF MADHYA PRADESH
Vivek Rusia, J.
M. P. Bombay Auto Service (M/s.) v. Bharat Petroleum Corporation Limited
Writ Petitions No. 19872 of 2022 and 10506 of 2022 (I);
Decided on 13.2.2024*
Departmental Proceedings -- second show cause notice -- sought to be quashed on ground of delay -- matter of adulteration in petroleum product -- departmental enquiry initiated on basis of FIR lodged in matter -- some more irregularities revealed upon considering reply to first show cause notice -- supplementary show cause notice issued for explanation -- considered in continuation of first notice -- issuance of first notice well within time limit -- no ground for interference in second notice. (2012) 2 SCC 1 distinguished. [Para 11
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ORDER
As the controversy involved in both these two petitions is identical, therefore, they are being decided by this common order. For the sake of convenience, the facts narrated in W.P. No.19872/2022 are being taken into consideration.
The petitioner has filed the present petition being aggrieved by show-cause notice dated 13.6.2022 passed by respondent No.2.
1. Facts of the case, in short, are as under :
The petitioner is a proprietorship firm running the business of selling and supplying Motor Spirit (Petrol) and HSD (Diesel) since last 25 years by virtue of dealership awarded by respondent Oil Company. The last dealership agreement was executed on 18.8.2018 for a period of 5 years i.e. up to 22.12.2023.
2. A complaint was made against the petitioner in Police Station Kishanganj, District Indore on the basis of which a raid was conducted by the Police on 11.10.2021 during the unloading of petrol and diesel from Tanker bearing Registration No. MP-09-HG-9027 to MP-09-HJ-9027. Prima facie adulteration was found in the petroleum product, therefore, samples were drawn and thereafter, FIR was registered on 14.10.2021 at Police Station Kishanganj at Crime No. 727/2021 u/s. 420 and 120-B of the IPC read with section 3 and 7 of the Essential Commodities Act, 1955 (hereinafter referred to as “the Act of 1955” for short) against Suresh Kushwaha, Chandraprakash Pandey, Vijay Kumar Mundara and Rakesh Agrawal. The aforesaid incidence was highlighted in the media, thus the authorities of Bharat Petroleum Corporation Ltd. (BPCL) visited the retail outlet of the petitioner on 15.10.2021 and carried out the inspection. They also drawn the samples of petrol and diesel and sent to the Quality Assurance Laboratory, Mangliya. On the basis of the aforesaid incidence, the sale and supply of the products were suspended w.e.f. 15.10.2021. Thereafter, show-cause notice was issued on 3.11.2021 by the Territory Manager to the petitioner based on the incidence that took place on 11.10.2021 and some minor irregularities relating to Register w.e.f. 14.10.2021 noticed by the team of the respondents. Along with the showcause notice, the report given by Quality Assurance Laboratory was also provided to the petitioner.
3. Meanwhile, the son of the proprietor of the petitioner firm applied for anticipatory bail before this Court which was granted on 23.11.2021. The petitioner submitted the reply to the show-cause notice on 6.12.2021 denying each and every allegation and also explained each and every aspect of the said incidence.
4. The confiscation proceedings were also initiated by the District Magistrate, Indore under the provisions of Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 read with section 3 and 7 of the Act of 1955. In exercise of powers conferred u/s. 6A of the Act of 1955 the Tanker bearing Registration No. MP-09-HJ-9027 has been ordered to be confiscated with a fine of Rs.10,000/- vide order dated 4.1.2022 by the Additional Collector. The petitioner deposited the fine amount of Rs.10,000/- and got release of the Tanker on 10.1.2022.
5. After receipt of the reply to the show-cause notice the petitioner was provided personal hearing by sending notice dated 31.1.2022. The petitioner appeared before the competent authority on 14.2.2022 and explained all the facts and grounds taken in the reply to show-cause notice. The petitioner again sought permission for personal hearing which was provided on 8.3.2022 before the Head Retail, West at Western Regional Office at Mumbai. The petitioner waited for almost one month and when no order was passed, submitted the representation to the respondents for resumption of sale and supply from the aforesaid retail outlet. Before taking any final decision, the respondents initiated the proceedings for allotment the retail outlet of the petitioner to other dealer on adhoc basis by issuing letter dated 13.4.2022. Being aggrieved by the aforesaid letter, the
Termination of dealership without adhering to procedural guidelines and principles of natural justice is unlawful.
Procedural timelines in regulatory matters are mandatory; delays without justification invalidate actions taken under such guidelines.
It is primarily the responsibility and duty of a statutory authority to take a decision and it should be enabled to exercise its discretion independently. If the authority does not exercise its mind ....
The Court may decline to interfere in a matter where the petitioner has a remedy available and no prejudicial order has been passed yet.
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