IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
Bommak Chandrashekar – Petitioner
Versus
The Regional Head, State Level Co-ordinator Hindustan Petroleum Corporation Limited and Others – Respondents
Writ Petition No. 17123 of 2023
Decided On : 03-06-2024
Writ - Retail Outlet - Indian Roads Congress Guidelines - The court interpreted that the IRC Guidelines are directory and not mandatory, influencing the decision to dismiss the writ petition challenging the issuance of a Letter of Intent.
Fact of the Case:
The petitioner sought to quash a Letter of Intent issued to the 4th respondent for a retail outlet, claiming it violated IRC Guidelines and principles of natural justice, as he was previously issued a Letter of Intent for the same location.
Finding of the Court:
The court found that the petitioner failed to demonstrate any violation of legal rights and that the IRC Guidelines were not mandatory, thus dismissing the writ petition.
Issues: Whether the issuance of the Letter of Intent to the 4th respondent violated IRC Guidelines and the principles of natural justice, and whether the petitioner had the locus standi to challenge it.
Ratio Decidendi: The court held that competition in business is lawful and that the petitioner had no legal right to prevent the 4th respondent from operating a retail outlet, as the IRC Guidelines were not binding.
Result: The writ petition was dismissed as devoid of merits.
ORDER :
1. Heard Sri S.Lakshmikanth, the learned counsel appearing on behalf of the petitioner, Sri Thoom Srinivas, learned counsel appearing on behalf of the 1st respondent, Sri B.Narendra Naik, the learned counsel appearing on behalf of the 2nd respondent, Sri Dominic Fernandez, the learned counsel appearing on behalf of the 3rd respondent and Sri Manu, the learned counsel appearing on behalf of the 4th respondent.
2. The petitioner approached the Court seeking prayer as under:
3. PERUSED THE RECORD:
“Notice before admission.
Sri Thoom Srinivas, learned Standing Counsel takes notice for respondent No. 1
Sri Dominic Fernandez, learned Standing Counsel takes notice for respondent No. 3.
Learned counsel for the petitioner is permitted to take out personal notice to respondent Nos.2 and 4 by registered post with acknowledgement due and file proof of service in the Registry.
Post on 18.07.2023.
Pending further orders, respondent Nos.2 and 4 are directed not to commence to the business operations in the subject Retail Outlet.”
The said order dated 04.07.2023 passed in W.P.No. 17123 of 2023 is in force as on date.
(B) The counter affidavit filed on behalf of respondent No. 3, and in particular, paragraph No. 6, reads as under:
“6. In reply to paragraph 2 to 4 of the Writ Affidavit it is submitted that the location “Between Boduppal ‘X’ Roads to Dr.B.R.Ambedkar Statue on Boduppal Road not on NH – under open category in Medchal-Malkajgiri District” was advertised in SRMP-2018 under serial No. 468. The same was advertised as a biding site with minimum bid value of 30 Lacs. There were 4 applicants for the above advertised site in Group-1 (Own Land Category). The petitioner was the second highest bidder. The applicant with highest bid value was disqualified and accordingly, the Petitioner was selected. It is further submitted that the guidelines issued by IRC are directory in nature and are not mandatory. Furthermore, there is no G.O. issued in the state of Telangana for adoption of the same that has been brought to the knowledge of the Respondent Corporation.”
(C) The counter affidavit filed on behalf of Respondent No. 2, and in particular, paras 13 to 20, read as under:
“13. The Respondent No. 4 was initially issued Letter of Intent dated 01.12.2012 for setting up a retail outlet at Santalpur, Gujarat. Subsequent to the initial issuance of Letter of Intent in favour of Respondent No. 4, the Ministry of Petroleum and Natural Gas issued a Circular dated 12.04.2012 bearing No. P-19011/4/2009/IOC which was addressed to the oil marketing companies including Respondent No. 1 and 3, wherein it was specifically stated that LOI holders, belonging to SC/ ST, Widows or Women above the age of 40 years
Deepak Agarwal Vs. State of U.P. 2011 (6) SCC 725
Jasbhai Motibhai Desai Vs. Roshan Kumar, Haji Bashir Ahmed and others
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.
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