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NEUTRAL CITATION

C/SCA/16313/2016 JUDGMENT DATED: 09/04/2026

0.10753406089990125

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 16313 of 2016

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK ==========================================================

Approved for Reporting Yes No ==========================================================

UDAY GAS AGENCY Versus INDIAN OIL CORPORATION

==========================================================

Appearance:

MR PRATIK P THAKKAR(6097) for the Petitioner(s) No. 1 M R BHATT & CO.(5953) for the Respondent(s) No. 1 ==========================================================

CORAM:HONOURABLE MR. JUSTICE HEMANT M.

PRACHCHHAK Date : 09/04/2026

JUDGMENT

1. RULE returnable forthwith. M R Bhatt and Co., learned counsel for the respondent waives service of notice of rule on behalf of the respondent. With the consent of the learned counsel for the respective parties, the present petition is taken

up for final hearing today.

2. Present petition is filed by the petitioner under Articles 14, 19(1)(g) and 226 of the Constitution of India read with the provisions of Liquefied Petroleum Gas (Regulation and Supply

Distribution) Order, 1993 seeking following reliefs:

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NEUTRAL CITATION

C/SCA/16313/2016 JUDGMENT DATED: 09/04/2026

0.10753406089990125

“(A) YOUR LORDSHIPS be pleased to issue appropriate, writ, order or direction to quash and set aside the order dated 02.08.2016 passed by the respondent rejecting the appeal of the petitioner and the ORDER dated 01.04.2016 passed by Area Chief Manager of the respondent Company for penalty of Rs.1,38,373/- as being arbitrary, illegal and without applying

mind, in the interest of justice;

(B) YOUR LORDSHIPS be pleased to stay the implementation, execution of the order dated 02.08.2016 passed by the respondent rejecting the appeal of the petitioner and the ORDER dated 01.04.2016 passed by Area Chief Manager of the respondent Company for penalty of Rs.1,38,373/- as being arbitrary, illegal and without applying mind, pending the

admission, hearing and final disposal of this petition;

(C) YOUR LORDSHIPS be pleased to pass such other and further orders as may be deemed fit and proper.”

3. Brief facts giving rise to the present petition are that, the petitioner is a partnership firm which came to be appointed as a dealer for operating the distributor outlet of LPG cylinders. That, on 04.09.2014, an inspection was carried out by ofÏcer of the respondent and 5 points were mentioned in the inspection report and the petitioner had explained the concern ofÏcer that faulty software of the respondent is the cause of these discrepancy. That, on 11.10.2014, the petitioner received a show cause notice from the Chief Area Manager of the respondent listing four issues. That, the petitioner received order dated 01.04.2016 for penalty equivalent to 20% of the average monthly distributor's commission I.e. Rs.1,38,373/- for not giving rebate on home delivery of cylinder. Consequently, the petitioner filed an appeal

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NEUTRAL CITATION

C/SCA/16313/2016 JUDGMENT DATED: 09/04/2026

0.10753406089990125

before the Appellate Authority of the respondent which came to be rejected vide order dated 02.08.2016.

4. Being aggrieved and dissatisfied with the impugned orders dated 01.04.2016 and 02.08.2016 passed by the concerned respective authorities, the petitioner has preferred the present

petition.

5. Heard the learned counsel for the respective parties.

6. Mr. Pratik Thakkar, learned counsel for the petitioner has submitted that the impugned orders passed by the concerned authorities are illegal, unjust, arbitrary, erroneous and contrary to the facts and material on record and therefore, are required to be quashed and set aside. He has sub