IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.06.2023 CORAM THE HONOURABLE MR.JUSTICE M.DHANDAPANI W.P.No.14611 of 2023 and W MP.No.14091 of 2023 K.Pavunesan ...Petitioner Vs.

Indian Oil Corporation Limited, Represented by Divisional Retail Sales Head, (Marketing Division), Salem Divisional Office, No.234, 1^st Floor, NH-7, Salem-Bangalore Bypass Road, Kondalampatti, Salem-636 010.

Also having its registered office at:

G/9, Ali Yavar Jung Marg, Bandra (East), Mumbai-400 051. ...Respondent Petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus to call for the records pertaining to Letter bearing ref no.SLMDO/B.Agraharam on SH-60 dated 06.01.2023 by the Respondent thereby cancelling the Letter of intent bearing LOI No.M/ 2021/IN001141.TN/000073/4104/00002 dated 15.09.2021 and to quash the same.

For Petitioner : Mr.B.Mohan For Respondent : Mr.Mohamed Fayaz Ali

O R D E R

This Writ petition has been filed seeking quashment Letter of the respondent bearing Ref No.SLMDO/B.Agraharam on SH-60 dated

06.01.2023.

2. Mr.Mohamed Fayaz Ali, learned counsel takes notice for the respondent. In view of the consent expressed by the Learned counsel appearing for either side, this petition is taken up for final disposal.

3. The case of the petitioner is that, pursuant to the newspaper advertisement dated 25.11.2018 issued by the respondent, the petitioner had applied for retail outlet dealership vide application dated 15.12.2018 and was selected for dealership based on the draw of lots conducted on 14.02.2019. Thereafter, on 25.02.2019, the petitioner remitted the Initial Security Deposit of Rs.50,000/- and subsequently, the respondent issued Letter of Intent (in short 'LOI') dated 15.09.2021 in favour of the petitioner, as per which, the petitioner has to remit a sum of Rs.15 Lakhs towards non-

refundable fixed fee within a period of 15 days from the date of receipt of No Objection Certificate (in short 'NOC') and Rs.4.5 Lakhs towards Security deposit at the time of issuance of appointment order. While so, the District Revenue Officer (in short 'DRO') issued NOC on 14.03.2022, however, due to Covid-19 Pandemic, as the petitioner incurred huge loss in business, he was unable to deposit the above said Security deposit and fixed fee. In such circumstances, the respondent issued Show cause notices dated 29.03.2022, 28.04.2022, 11.05.2022 and finally on 13.05.2022 for cancellation of LOI and thereby cancelled the LOI, vide impugned letter dated 06.01.2023. Challenging the same, the petitioner has come up with this Writ petition.

4. Learned counsel for the petitioner submitted that, due to Covid-19 Lockdown, the petitioner was unable to run his business, due to which, he incurred huge loss and thereby, he was not able to remit the above said amount as directed by the respondent. However, he fairly submitted that, the petitioner is ready to pay the said amount along with reasonable interest within the time stipulated by this Court.

5. Learned counsel appearing for the respondent submitted that, the respondent corporation issued a newspaper advertisement on 25.11.2018, inviting applications for retail outlet dealership for the location B.Agraharam on SH60, Dharmapuri and the petitioner's application dated 15.12.2018 bearing Application No. 15448554506078 was received and the petitioner being an eligible candidate was selected as a successful candidate and the same was communicated to the petitioner, vide email dated 16.02.2019, as per which, the petitioner also remitted a sum of Rs.50,000/- towards initial Security Deposit on 25.02.2019. Thereafter, subsequent to the inspection and verification of the land offered by the petitioner for establishing the petroleum retail outlet situated in S.No.183/2, Kongani Alli Village, measuring an extent of 1225 sq.mt., the petitioner was issued with the Letter of Intent dated 15.09.2021, as per which, the petitioner has to execute the MS/HSD Retail Outlet Dealership Agreem