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2026 Supreme(MP) 488

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
DEEPAK KHOT, J.
Quazi Ruknuddin – Petitioner 
Versus 
Union Of India And Others – Respondents
Writ Petition No. 1216 of 2013 
Decided On : 05-05-2026

Advocates Appeared:
For the Petitioner:Shri Manoj Kumar Sharma, Senior Advocate With Ms. Aqusa Mukarram, Advocate
For the Respondents:Shri Ashish Agrawal, Advocate, Shri Aditya Adhikari Senior, Advocate With Ms. Anannya Shree Adhikari, Advocate, Shri Suyash Thakur, Government Advocate, Shri Brindavan Tiwari, Advocate

Eligibility criteria in public advertisements are sacrosanct. Internal guidelines for correcting deficiencies cannot override mandatory requirements—such as financial capacity within a defined family unit or land ownership—unless those guidelines are explicitly incorporated into the public notice.

Headnote:(A) Constitution of India - Article 226 - Selection process for LPG distributorship - Compliance with advertisement conditions - Selection criteria specified in a public advertisement are sacrosanct and must be strictly adhered to; internal guidelines for correcting minor errors cannot override fundamental eligibility requirements unless such provisions are incorporated into the public advertisement. (Para 19)

(B) Financial Eligibility - Requirement of minimum balance in the name of self or family unit - A joint account held with a third party who does not fall within the defined "family unit" cannot be considered to fulfill the financial stability criteria of the selection process. (Para 13)

(C) Land Ownership - Mandatory prerequisite for establishment of storage godown - Clear ownership title in the name of the applicant or a family member must be established; the provision of leasehold land or land subject to pending litigation and subsequent cancellation of partition does not satisfy the eligibility criteria. (Paras 18, 19)

Facts of the case:
A petition was filed challenging the allotment of an LPG distributorship. The petitioner contended that the successful candidate was ineligible because they failed to meet the financial requirement of having a specific balance in a bank account belonging to them or their family unit, having instead utilized a joint account with a friend. Additionally, it was alleged that the successful candidate did not own suitable land as required, having initially offered leasehold land and later substituted it with disputed land. The respondent authority argued that an internal industry note allowed for the rectification of such deficiencies.

Findings of Court:
The court found that the joint account held with a third party did not meet the definition of a "family unit" expressed in the advertisement and brochure. Regarding the land, it was observed that the land offered was either leasehold or subject to a partition that was later set aside by a competent authority, meaning the candidate did not have clear ownership at the relevant time. The court further held that internal notes cannot bypass the restrictive conditions of the public advertisement if those notes were not made part of the advertisement.

Issues: Whether the allotment of a distributorship is legal when the candidate fails to meet the financial and land ownership eligibility criteria stipulated in the public advertisement and instead relies on joint accounts with third parties and disputed land titles.

Ratio Decidendi: The terms of a public advertisement for selection are binding. Mandatory eligibility criteria, such as financial capacity within a defined family unit and absolute land ownership, cannot be diluted by internal administrative notes that allow for the correction of deficiencies, unless such administrative flexibility is explicitly stated in the public notice. Failure to satisfy these criteria on or before the cut-off date renders the selection process vitiated.

Result: Petition stands allowed and disposed of. Respondent Corporation is directed to consider the candidature of the petitioner accordingly.

Legal Category Hierarchy

  • constitutional law
    • writ jurisdiction
      • article 226 (Para 1)
      • writ of mandamus (Para 1)
      • writ of certiorari (Para 1)
  • administrative law
    • government schemes
      • rgglv distributorship scheme
        • eligibility criteria
        • selection process
    • judicial review of administrative action
      • scope of review (Para 22, 23)
      • estoppel (Para 23)
  • practice and procedure
    • evidence
      • documentary evidence (Para 15, 16)

Table of Contents

1. Challenge to allotment of LPG distributorship under RGGLV scheme for non-compliance with eligibility criteria regarding bank account balance and land ownership. (Para 1 , 2 )

2. Petitioner contended ineligibility due to joint account and disputed land; respondent argued opportunity to rectify and evaluation of joint account. (Para 3 , 4 , 5 , 6 )

3. Petition allowed; selection process declared illegal; respondent directed to consider petitioner's candidature. (Para 25 , 26 )

4. Can a joint account with a non-family member satisfy the eligibility condition of holding Rs. 2 lakhs in an account under the RGGLV scheme?

No, because the eligibility criteria require the account to be in the name of the applicant or family unit; a joint account with a third party not part of the family unit is not considered. (Para 11 , 12 , 13 )

5. Can an applicant be allowed to rectify a deficiency in land ownership after the cut-off date under the RGGLV scheme?

No, unless the advertisement or brochure explicitly incorporates a rectification provision; the industry note cannot override the mandatory cut-off date stated in the advertisement. (Para 14 , 15 , 19 )

6. Is a petitioner who participated in the selection process estopped from challenging the eligibility of another candidate?

No, when the challenge is based on the ineligibility of the other candidate under the advertised conditions, not on the validity of the conditions themselves. (Para 23 )

7. Does the definition of 'family unit' under the RGGLV scheme include a joint account holder who is not a family member?

No, the family unit is defined strictly as the applicant, spouse, unmarried children, or parents and unmarried siblings; a friend is not included. (Para 10 , 12 )

ORDER :

DEEPAK KHOT, J.

The present petition has been filed by the petitioner under Article 226 of the Constitution of India seeking the following reliefs:

(i) A writ in the nature of Mandamus be issued commanding the Respondents to cancel the allotment of LPG distributorship for place at S. No. 111 in pursuance of the advertisement dated 19.5.2012 under the RGGLV Distributorship Scheme for place Barauli, Tehsil Ajaygarh, District Panna in favour of Respondent No. 7;

(ia) Issue a writ in the nature of certiorari and be pleased to hold and declare that allotment of LPG distributorship for the place situated at S.No.111 in the advertisement dated 19.5.2012 under RGGLV distributorship scheme for place Barauli Tahsil Ajaygarh, District Panna in favour of respondent No.7 is illegal and be pleased to direct official respondents to issue the allotment order in favour of petitioner within a stipulated time as he is the sole candidate fulfilling the eligibility criteria and the requirements contemplated under the advertisement as well as the policy.

(ii) Call for the entire material record pertaining to instant controversy from the respondents for its kind perusal;

(iii) Any other relief, which this Hon’ble Court may deem just and proper in the facts and circumstances of the case, may be granted in favour of the petitioner; and

(iv) Cost of the petition be awarded to the petitioner.

2. Facts of the case in brief are that respondent no.2 Indian Oil Corporation Limited had issued an advertisement on 19.05.2012, which was published in Hindi daily Dainik Bhaskar, Satna Edition, Page No.13, annexure P/1, for grant of distributorship under the Rajiv Gandhi Gramin LPG Distribution Scheme (RGGLV), for the notified location Barauli, Tehsil Ajaygarh, District Panna under open category, mentioned at Serial No.111. Under Clause 4 of the advertisement, the said distributorship was reserved for Open Category candidates. Clause 14 specifically stipulated that the application form was required to be submitted along with all supporting documents and that no document other than those submitted with the application could be considered at any subsequent stage. Further, Clause 3(h) provides that the land offered for establishment of LPG godown must be suitable in all seasons, accessible to trucks for unloading LPG cylinders, and exclusively owned by the applicant. In compliance with the aforesaid terms and conditions of the advertisement, the petitioner submitted his application on 20.06.2012 along with the prescribed demand draft and all requisite documents and vide communication dated 25.07.2012, the petitioner’s application was accepted. Subsequently, vide communication dated 04.09.2012, the petitioner was informed that draw of lots was scheduled on 26.09.2012 between the petitioner and Respondent No.7 for selection of LPG distributor at Barauli. On coming to know that Respondent No.7 had not submitted land documents as required under Clause 3(h) and had furnished only a rent note/agreement instead of proof of exclusive ownership, the petitioner submitted objections dated 25.09.2012 and 20.10.2012 before the competent authorities objecting to his inclusion in the draw of lots. The communication dated 01.08.2012 further reveals that the land documents initially submitted by Respondent No.7 had been rejected by the competent authority and the respondent no.7 was allowed to rectify the default beyond the cut off date, i.e. 20.6.2012, which is contrary to the advertisement and he was allowed to participate in the selection process, pursuant to which he was declared successful. After obtaining information with regard to the candidature of the respondent no.7, the petitioner submitted a representation/complaint on 22.10.2012 before respondent no.5 with regard to ineligibility of respondent no.7 vide annexure P/11. Being aggrieved with the allotment of LPG Distributorship in favour of respondent no.7, the petitioner preferred instant petition, in which vide interim or

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