IN THE HIGH COURT OF JUDICATURE FOR THE STATE OF

TELANGANA

HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA

WRIT PETITION No. 27398 OF 2022

06.01.2026

Mohammed Mastan Ali

….. Petitioner

And

Union of India,

Ministry of Petroleum and Natural Gas,

Rep. by its Secretary and two others

….. Respondents

O R D E R:

Petitioner states that himself and his father -

Mohammed Jaffer Ali were partners and running a retail petroleum outlet of Hindustan Petroleum Corporation Limited (HPCL) in the name of M/s Mohd. Jaffer Ali Fuels at Nagarkurnool Town and District. While his father had 51 % share in the said business, petitioner had 49 % share. While so, it is stated, petitioner’s father died on 23.06.2016 and thereafter, he was taking care of the said retail petroleum outlet. When petitioner came to know that his father executed Registered Will Deed dated 16.02.2010 bequeathing his 51 % share in the above business in favour of petitioner while

bequeathing his other properties in favour of other family members, petitioner made an Application to the 3rd Respondent – Chief Regional Manager, Hindustan Petroleum Corporation Limited, on 29.03.2020 by enclosing a copy thereof and requested for reconstitution of dealership in respect of the above petroleum outlet. However, by the impugned proceedings dated 04.10.2021, the 3rd Respondent returned the reconstitution proposal on the ground that Legal Heir/Succession Certificate of deceased dealer and ‘No Objection Certificate’ from other legal heirs of the deceased have not been submitted by petitioner. In spite of petitioner informing the 3^rd Respondent about the Registered Will Deed executed by his father, the latter insisted for the above said Certificates. Hence, petitioner is before this Court.

2. Learned counsel for Petitioner Sri N. Sreedhar Reddy contends that Public Sector Oil Marketing Companies (OMCs) have framed policy guidelines; Guideline (G) of which deals with reconstitution of commissioned dealers. Sub-clauses (7) and (9) of Guideline (G) reads as under.

“Sub Clause (7)

Facility of Nomination – Request for transfer of share consequent to Death/Incapacitation “Notwithstanding the above, Proprietor/Partner(s) of existing Dealerships may submit nomination form containing name(s) of person(s) (from among his/her/their legal heir(s)/family member(s)/outsider(s) if he/she desires to transfer his/her share in the event of death or incapacitation resulting in total and permanent disability, which will disable him/her to work or follow any occupation or profession. The nomination form duly sworn before a First Class Magistrate/Executive Magistrate/any other equivalent competent authority in the concerned State may be submitted upon commissioning of the RO. The Proprietor/ Partner(s) will also have the option to change his/her nomination any time. In case of partnership, partners may submit nomination separately but such nomination will have to be witnessed by other partner(s).

Upon demise or total incapacitation of the sole proprietor/partner(s), the OMC can allow induction of such nominee(s) as per last nomination on record, as proprietor/partner(s) provided he/she/they meet the eligibility criteria for reconstitution, as applicable, without seeking consent from other legal heirs of the demised/totally incapacitated proprietor/partner(s). In case of more than one nominee, the shareholding of the deceased will be distributed among the nominated persons in the ratio mentioned in the last nomination or equally in case no share out is mentioned.

Along with the proposal for reconstitution, the surviving partner(s) and the nominee(s) will be required to submit indemnity bond as per Annexure G2 and Annexure F2 respectively.

However if the person(s) nominated express unwillingness to be inducted as Proprietor/Partner(s), or they are found ineligible, as per norms applicable for Dealership Selection other than age and education (viz. debarred from dealership under disqualification criteria as per the Dealer Selection Guidelines in