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2026 Supreme(Online)(Chh) 16321

HIGH COURT OF CHHATTISGARH AT BILASPUR
Amitendra Kishore Prasad, J
M/S BALAJI GAS COMPANY – Appellant
Versus
INDIAN OIL CORPORATION LIMITED – Respondent
WPC No. 2348 of 2026



Advocates:
For the Appellants/Petitioners: Achyut Tiwari
For the Respondents: Anand Shukla, Anand Dadariya

The court directed the administrative authority to resolve grievances regarding the shortage of commercial LPG supply by considering representations in accordance with the Natural Gas (Supply Regulation) Order, 2026 and applicable policies, noting the essential nature of the commodity.

Headnote:The petitioner, a registered LPG distributor, sought relief under the Natural Gas (Supply Regulation) Order, 2026, alleging that the respondent authorities failed to provide an adequate supply of commercial LPG cylinders despite advance payments and the entitlement of Priority Sector IV consumers to receive 80% of their average consumption. The court noted that the grievance pertains to the supply of essential commodities which directly impact consumers. The primary issue was whether the reduction in the supply of commercial gas cylinders was arbitrary and contrary to the Natural Gas (Supply Regulation) Order, 2026. The court observed that since the matter involves essential commodities, the administrative authority is best positioned to review the representations in light of the applicable policy and operational constraints. With this observation and direction, the writ petition is disposed of.

Table of Content
1. petitioner's claim for adequate commercial lpg supply based on the natural gas (supply regulation) order, 2026. (Para 1 , 2)
2. conflict between the distributor's right to policy-based allocation and the corporation's operational constraints. (Para 3 , 4)
3. judicial direction to administrative authorities to decide on grievances involving essential commodities within a stipulated timeframe. (Para 5 , 6 , 7)

Order on Board

1. By way of this petition, the petitioner has prayed for following reliefs:-

“10.1 That, this Hon'ble Court may kindly be pleased to call for the entire record pertaining to the case of the petitioner.

10.2 That, this Hon'ble Court may kindly be pleased to direct the respondent authorities to ensure the supply of commercial LPG cylinders to the Petitioner in accordance withthe Natural Gas (Supply Regulation) Order, 2026 by the Ministry of Petroleum and Natural Gas, Government of India, in the interest of justice.

10.3 The Hon'ble Court may kindly be pleased to direct the respondent authorities to consider and allow the applications /representations filed by the petitioner (Annexure P/10) in accordance with law within the stipulated time, in the interest of justice.

10.4 That, any other relief, which this Hon'ble Court may deem fit and proper together with cost of the petition.”

2. Brief facts of the case, is that, the petitioner is a duly registered distributor of Indane (Liquefied Petroleum Gas) under Indian Oil Corporation Limited and is carrying on distributorship business in accordance with the rights and obligations flowing from the distributorship agreement executed between the parties, it is submitted that the petitioner entered into a Distributorship (Domestic & Commercial) Agreement dated 28.12.2012 with Indian Oil Corporation Limited for supply and distribution of Indane LPG cylinders, and since then has been operating the distributorship in accordance with law and the conditions prescribed by the Corporation, it is further submitted that the petitioner possesses a valid licence for storage of compressed gas cylinders, which was duly renewed by the competent authority on 06.09.2023 and remains valid up to 30.09.2030, thereby authorising the petitioner to lawfully store and handle LPG cylinders subject to compliance with the prescribed statutory norms and safety regulations, according to the petitioner, he presently caters to approximately 14,722 gas connections including 215 commercial gas connections and numerous consumers under various categories, who are dependent upon regular supply of LPG cylinders for their daily commercial and domestic requirements; it is further submitted that due to disruptions in liquefied natural gas shipments passing through the Strait of Hormuz on account of geopolitical tensions in the Middle East, the Ministry of Petroleum and Natural Gas, Government of India issued the Natural Gas (Supply Regulation) Order dated 09.03.2026 regulating supply and allocation of gas to various priority sectors, wherein industrial and commercial consumers supplied through City Gas Distribution (CGD) networks falling under Priority Sector IV were made entitled to receive up to 80% of their average consumption subject to operational availability and allocation norms; it is submitted that the petitioner has been regularly raising indents for supply of commercial gas cylinders strictly in accordance with the requirement and demand of its consumers and has also been making advance payments against such indents, maintaining proper stock registers and records of receipt and issuance of filled cylinders to ensure transparency and accountability; however, despite the petitioner having deposited an advance amount of Rs. 7,79,940.65/- towards supply of commercial and domestic cylinders, the respondents have failed to ensure adequate and proportionate supply of commercial gas cylinders to the petitioner; it is specifically contended that in the month of March the petitio

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