2024 Supreme(Online)(KAR) 29998
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 21754 OF 2024 (GM-RES)
BETWEEN:
K SUDHAMANI W/O Y SRINIVAS AGED ABOUT 44 YEARS R/O NO.840, MASJID ROAD
4TH BLOCK, BETHAMANGALA KGF KOLAR-563116.
…PETITIONER (BY SRI. K N PHANINDRA, SENIOR COUNSEL FOR SRI. R HEMANTH RAJ., ADVOCATE)
AND:
1. THE UNION OF INDIA MINISTRY OF PETROLEUM AND NATURAL GAS REPRESENTED BY ITS PRINCIPAL SECRETARY, SHASTRI BHAVAN DR RAJENDRA PRASD ROAD Digitally signed by B K NEW DELHI-110001.
MAHENDRAKUMAR Location: HIGH COURT OF 2. THE DIVISIONAL RETAIL SALES HEAD KARNATAKA INDIAN OIL CORPORATION LIMITED MARKETING DIVISION BANGALORE DIVISIONAL OFFICE INDIAN OIL BHAVAN NO.29 P KALINGA RAO ROAD (MISSION ROAD)
BANGALORE-560027.
…RESPONDENTS (BY SMT. RESHMA K THAMMAIAH, CGC FOR R1;
SRI. UDAYA PRAKASH MALIYA, ADVOCATE FOR R2)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DTD. 02.08.2024 ISSUED BY THE R-2 BEARING NO. REF NO.BDO/RS/SRMP-2018/450 (PRODUCED AS ANNX-A).
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
ORAL ORDER
The first respondent issued a notification for the allotment of a Retail Outlet Dealership (Petrol Bunk). The petitioner submitted an application for the allotment of the Retail Outlet Dealership (Petrol Bunk) by offering land in Property No. 88/2 of Panthanahalli Village, Kyasamballi Hobli, KGF Taluk. The petitioner was selected in the draw for the allotment of the Retail Outlet Dealership (Petrol Bunk) held on 20.07.2022. In accordance with the notification, the petitioner was required to pay an initial security deposit and upload the relevant documents.
2. The petitioner entered into a lease deed for Sy.
No. 52/1 of Mittakothur Village, Kyasamballi Hobli, KGF Taluk, Kolar, on 15.06.2023, and submitted a representation to the first respondent on 07.07.2023 to change the land from Sy. No. 88/2 to Sy. No. 52/1. Subsequently, the second respondent accepted the petitioner’s request and issued a letter of intent dated 24.08.2023. At the instance of the respondent-Corporation, the petitioner received a necessary No Objection Certificate (NOC) from the competent authority for establishing the retail outlet petrol bunk.
3. Given these circumstances, a complaint lodged by one Chinnaswamy on 20.11.2023 resulted in an impugned communication canceling the allotment made in favor of the petitioner. This was based on allegations that the petitioner concealed the surrender of lease rights concerning Property No. 88/2, which was earlier offered for the allotment of the petrol bunk.
4. I have heard the arguments advanced by the learned counsel for the parties.
5. The notification was issued on 25.11.2018, and the Guidelines Brochure on the Selection of Dealers for Regular and Rural Retail Outlets through a draw of lots/bidding process was provided on 24.11.2018.
6. Note 3 appended to the said guidelines reveals that candidates offering land in their application have the option to offer an alternative parcel of land for “whatsoever reason,” but this must occur before the issuance of the letter of intent.
7. The withdrawal of the letter of intent is governed by Note/Clause 16 of the guidelines, which states that if a selected candidate is unable to provide the land or develop facilities within the specified time, or due to non-fulfillment of the terms and conditions of the letter of intent, then the letter of intent may be withdrawn. It further provides that a show cause notice must be issued to the letter of intent holder, and a decision to withdraw the letter of intent will be made by the competent authority based on the response. In such situations, the initial security deposit would be forfeited.
8. Note 22 of the guidelines addresses false information, stating that if any statement made in the application or in the documents enclosed therewith, or subsequently submitted, is found to have been suppressed, misrepresented, incorrect, or false at any stage, then the application is liable to be rejected without assigning any reason. If the applicant has been appointed as a dealer, the dealership is liable to be terminated, and the candidate/dealer shall have no claim whatsoever against the respective oil company.
9. In this instance, the petitioner did not misrepresent, suppress, or provide incorrect or false statements in the application for the allotment of the petrol bunk. The application was submitted in the year 2019, and the leasehold over land bearing Sy. No. 88/2 in favor of the petitioner’s husband had not been terminated as of the date of the application.
10. Note 18 of the guidelines includes a grievance redressal system, which provides for receiving complaints against the selection process, including eligibility. It states that any complaint received more than 30 days after the draw of lots/bidding process will not be entertained.
11. In this case, the draw of lots for the selection of the allotment of the retail outlet dealership was conducted on 20.07.2022, and the letter of intent was issued in favor of the petitioner. However,