Back
PATNA HIGH COURT
Mr. Justice Satyavrat Verma
M/s Sridhika Indane – Appellant
Versus
The Indian Oil Corporation Ltd. – Respondent
CWJC/14321/2022
LPG DEALER - DISCIPLINARY ACTION - FINE - CALCULATION
Fact of the Case:
The petitioner, an LPG dealer, was fined Rs.3,72,659.86/- for having 79 missing 14.2 Kgs. cylinders in a disciplinary action under the MDG (Marketing Discipline Guidelines), 2022. The petitioner challenged the order, arguing that the authority passing the first order did not assign any reason to reject the explanation offered by the petitioner.
Finding of the Court:
The court found that the first order was non-speaking and the appellate order disclosed wrong reasoning. The court also noted that the petitioner had consistently maintained that the missing cylinders were given to vendors early in the morning and returned later in the day, but this explanation was not considered by the authorities.
Issues: Whether the first order was non-speaking and the appellate order disclosed wrong reasoning.
Ratio Decidendi: The court held that the first order was non-speaking as it did not assign any reason to reject the explanation offered by the petitioner. The court also held that the appellate order disclosed wrong reasoning as it did not advert to the explanation filed by the petitioner.
Final Decision: The court set aside the order passed by the original authority as also the appellate authority and remitted the matter to the original authority to advert to the reasons given by the petitioner, ascertain the facts afresh and pass an objective order with reasons within a period of four weeks from the date of receipt/production of a copy of this order.
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.14321 of 2022
======================================================
M/s Sridhika Indane a Proprietorship Firm, having its place of Business at
Plot No. 1914, Khata No. 133, Thana- 353, Village Bishwanathpur, Dumra,
District Sitamarhi through its Proprietor Rajesh Kumar, Male, Aged about 46
years, Son of Laxmi Narayan Sahu, Resident of Mohalla Bhathiyari Sarai,
Gangasagar, Ward No. 17, P.S. Darbhanga, District Darbhanga.
... ... Petitioner/s
Versus
1.
The Indian Oil Corporation Ltd. through its Managing Director, Registered
Office at G-9 Ali Yawar Jung, Bandra (East), Mumbai.
2.
The Managing Director, Indian Oil Corporation Ltd., G-9 Ali Yawar Jung,
Bandra (East), Mumbai.
3.
The General Manager (LPG) Bihar State Office, Indane Oil Corporation,
Lok Nayak Bhavan, Dak Bunglow Chowk, Patna.
4.
The Deputy General Manager (LPG-S) Indane Area Office, Patna, First
Floor, Exhibition Road, Patna.
5.
The Area Manager Indane Oil Corporation Ltd, (Marketing Division) 1st.
Floor, Shahi Bhawan, Exhibition Road, Patna.
6.
The Assistant Manager (LPG-S), Muzaffarpur Indane Divisional Office,
Sherpur, P.O. MIC Bela, Muzaffarpur.
7.
The Divisional LPG Head, Muzaffarpur Indane Divisional Office, Sherpur,
P.O. MIC Bela, Muzaffarpur.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s
:
Mr. S.D. Sanjay, Sr. Advocate
Mrs. Priya Gupta, Advocate
Mr. Lokesh Kumar, Advocate
Mr. Anand Kumar, Advocate
Mr. Rahul Kumar, Advocate
For the Respondent/s
:
Mr. Sanat Kumar Mishra, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE ASHUTOSH KUMAR
and
HONOURABLE MR. JUSTICE SATYAVRAT VERMA
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE ASHUTOSH KUMAR)
Date : 10-01-2023
Heard Mr. S.D. Sanjay for the petitioner and Mr. Sanat
Kumar Mishra for the State.
The petitioner/LPG Dealer is aggrieved by the decision
of respondent no. 7/the Divisional LPG Head, Muzaffarpur, Indane
Patna High Court CWJC No.14321 of 2022 dt.10-01-2023
2/6
Divisional Office, IOC, whereby, in a disciplinary action against
the petitioner under the MDG (Marketing Discipline Guidelines),
2022, he has been saddled with a fine of Rs.3,72,659.86/- as also
the appellate order dated 24.08.2022, affirming the same, which
was communicated to the petitioner through E-mail dated
05.09.2022.
The appellate order but has been brought on record by
the respondent/Indian Oil Corporation.
The methodology for calculating the quantum of fine is
20% of the yearly commissionage plus the quantum of irregularity.
79 numbers of 14.2 Kgs. cylinders were found to be missing in the
inspection, the price of which was calculated at Rs.1,81,700/-. Rest
of the amount as noted above is by way of 20% of the
commissionage. Be it noted that the commission earned by the
petitioner is Rs.8,046,806.32/-.
There is no dispute with respect to the calculation of the
fine.
What the petitioner contests is that the authority passing
the first order did not assign any reason to reject the explanation
offered by the petitioner. One of the mandates in the MDG
(Marketing Discipline Guidelines), 2022 is that the concerned
Divisional LPG Head/Territory Manager/Regional Manager, shall,
Patna High Court CWJC No.14321 of 2022 dt.10-01-2023
3/6
after reviewing the charges levelled in the show cause notice to a
dealer and the reply received from him, shall pass a speaking order
within a period of 45 days from the date of receipt of the reply.
The petitioner has assailed the aforesaid order on the
ground that the concerned authority, reviewing the allegation
against the petitioner, has only disclosed that the explanation
offered by the petitioner is not satisfactory and then he has gone on
to calculate the quantum of fine for the shortage in the stock
position.
In the first order, re
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
