IMPORTANT POINT
Administrative decisions must be reasoned and justified; failure to provide such reasoning can lead to judicial intervention.

ORDER :

Surepalli Nanda, J.

Heard learned counsel Sri T. Bala Mohan Reddy, appearing on behalf of the Petitioner, Sri Gadi Praveen Kumar, learned Deputy Solicitor General of India appearing on behalf of respondent No.1 and Sri Dominic Fernandes appearing on behalf of the Respondent No.2 and 3.

2. The petitioner approached the court seeking the prayer as under:

“to grant an order direction or writ more so in the nature of writ of mandamus declaring the proceedings bearing Ref. No. TAPSO OPS/POL/VGA TML/ITDG/22-22/06 dated 28.02.2023 issued by the 3rd respondent herein whereby the petitioners contract was terminated and tank trucks being blacklisted apart from imposing penalty contrary to the provisions of Oil Industry Transport Discipline Guidelines (ITDG) as illegal, arbitrary, highhanded violative of principles of natural justice apart from being violative of article 14 of Constitution of India and consequently to set aside the proceedings bearing Ref. No. TAPSO OPS/POL/VGA TML/ITDG/ 22-22/06 dated 28.02.2023 issued by the 3rd respondent herein and pass such other order or orders….”

3. PERUSED THE RECORD :

A) The relevant portion of the order impugned dated 28.02.2023 issued by the 3rd Respondent bearing Ref. No. TAPSO OPS/POL/VGA TML/ITDG/ 22-22/06, reads as under :

“Transporter is also found to be in violation of following clauses of ITDG:

The alteration made in the TT by inserting the non-standard rod inside the dip pipe of M2 compartment has affected the quality and quantity of the product and there is deemed complicity and for the same ITDG provides for the following penal provisions:

Quote

"In the following irregularities, the complicity of the carrier shall be deemed to be existent and the whole contract comprising of all the TTs belonging to the concerned carrier shall be terminated, security deposit forfeited and the concerned carrier & their all TTs shall be blacklisted on Industry basis:

1. False/hidden compartment, unauthorized fittings or alteration in standard fittings affecting Quality and Quantity.

2. Illegal/un-authorized duplicate keys of security locks.

3. Duplicate dip rod/calibration chart."

Unquote

Wherefore after considering your show cause reply, submissions made during the personal hearing and reasons stated above, the competent authority has taken a decision that you have been found guilty in altering with the standard fitting of the TT by introducing non- standard rod inside the dip pipe of M2 compartment for removing the product and ensuring that dip level remains same of short delivery of the product and following actions to be taken against the transporter as per transport agreement and ITDG:

1) Termination of Contract along with forfeiture of Security Deposit of Rs.8,00,000/-

2) Blacklisting of transporter M/s Radhika Logistics and its entire fleet alongwith the crew engaged at Vijayawada terminal for two years on industry basis.

3) Recovery of the total loss of Rs. 67,41,670.38 (Rupees Sixty-Seven lakhs Forty-One Thousand Six Hundred Seventy only) accounted from the date of last calibration.

This letter is issued without prejudice to any of the Corporation's rights and remedies against the transporter.

B. Counter affidavit has been filed by Respondent No.2 and 3, and in particular, Paras 12, 15 and 16 read as follows :

“12. In reply to paragraph no. 8 of the writ affidavit it is submitted that the initial notice with sum arrived is mentioned as Rs.5