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2015 DIGILAW 936 (RAJ)

TARA SINGH v. INDIAN OIL CORPORATION LIMITED

2015-04-27

ATUL KUMAR JAIN, SUNIL AMBWANI

body2015
JUDGMENT 1. We have heard learned counsel appearing for the parties. 2. By this Special Appeal, the appellant, who was awarded the Rajeev Gandhi LPG Distributorship for Handiya in District Dausa in SC category, has challenged the order of learned Single Judge, dated 06.05.2014, by which the application for his impleadment was rejected, leaving him with no remedy, and which also allegedly affected the supply of LPG to him by an interim order dated 11.05.2011. 3. The Indian Oil Dealership of Mahuwa Indane Gas Service, a Proprietorship Firm, for Mahuwa, District Dausa, was terminated. The firm filed Writ Petition No.4852/2011, in which by an interim order dated 11.05.2011, it was directed that so far as the agency of the petitioner (Mahuwa Indane Gas Service) is concerned for the areas in question, no steps for grant of the agency or advertisement for seeking fresh application in respect of the same shall be issued during the pendency of the writ petition. 4. A new scheme, by the name of Rajeev Gandhi LPG Distributorship, was initiated by the Oil Company for providing gas service in semi-rural and rural areas, and which included a part of the area of Handiya in District Dausa. The agency was advertised, in which Shri Tara Singh, the appellant, was successful and a Letter of Intent was given to him on 07.11.2013. The Mahuwa Indane Gas Service, relying upon the interim order, approached the Indian Oil Company, on which the supplies of Tara Singh, the appellant, were stopped. He filed an impleadment application, which was rejected by learned Single Judge, and he was left with no remedy other than to file this Special Appeal. 5. The interim order dated 10.10.2014, reads as follows:- “Let the notice for respondent No.3 be served to the counsel, who appeared for the writ petitioner (Mahuwa Indane Gas Service Proprietorship Firm) in S.B.Civil Writ Petition No.4852/2011. He is allowed two weeks' time to file reply to both the application for condonation of delay as well as Special Appeal. List again on 18.11.2014. It is submitted by learned counsel appearing for the appellant, who was applicant in the application for impleadment, that the interim order dated 11.05.2011 had no effect on the dealership of the applicant as Rajeev Gandhi LPG Distributorship was awarded for the area of Handiya in District Dausa in SC category. List again on 18.11.2014. It is submitted by learned counsel appearing for the appellant, who was applicant in the application for impleadment, that the interim order dated 11.05.2011 had no effect on the dealership of the applicant as Rajeev Gandhi LPG Distributorship was awarded for the area of Handiya in District Dausa in SC category. The Indian Oil Corporation, having granted the distributorship, the letter of intent was kept in abeyance vide letter dated 07.12.2013 on the ground that the area of distributorship is covered by the interim order passed by this Court on 11.05.2011. It is submitted that Handiya is a different area altogether. Under the policy of the Indian Oil Corporation, if the number of consumers exceed 8000, the new distributorship has to be carved out for the area in question. He submits that the consumers in the area of Handiya, to be allocated to the applicant, are over and beyond the consumers of the area of Muhawa in respect of which the petition was filed. We are, prima facie, of the view that the applicant's rights have been affected by the interim order passed by the Court, whereas the letter of intent was issued and the godown is being constructed awaiting commissioning of the distributorship. The applicant was thus a necessary party to the proceeding. Considering the inconvenience, which is being caused to the consumers of the area on the continuance of the interim order dated 11.05.2011, we directed that until further orders, the letter of India Oil Corporation dated 07.12.2013 keeping the letter of intent issued to the applicant for Handiya, district Dausa, in abeyance, shall remain stayed. The application will be allowed to distribute LPG in the area subject to the final decision of this Special Appeal.” 6. It is submitted by learned counsel appearing for the Mahuwa Indane Gas Service, the petitioner in Writ Petition No.4852/2011, that the advertisement and the award of Rajeev Gandhi LPG Distributorship to Tara Singh, was against the interim order dated 11.05.2011, and that unless the interim order was vacated, no fresh advertisement could be issued for the area, which was included in the area of Mahuwa Indane Gas Service. He states that the only remedy available to Tara Singh, was to get the interim order vacated, and in any case on merits also, the area of Mahuwa Indane Gas Service could not have been curtailed. 7. He states that the only remedy available to Tara Singh, was to get the interim order vacated, and in any case on merits also, the area of Mahuwa Indane Gas Service could not have been curtailed. 7. The Rajeev Gandhi LPG Distributorship scheme was initiated for supply of cooking gas in the rural area. It was the scheme to make the gas services/refills available on the doorstep of the consumers. It was made for the convenience of the consumers. Even otherwise, the consumers have the choice to choose the dealer, based on the proximity of the location and availability of the refills. 8. The DGM(LPG-Sales), had issued a Circular dated 10.03.2000, in compliance with the MOP & NG, vide its communication dated 26.02.2000, that wherever the consumers exceed 8000 in the Towns upto the population of 10 lakhs, a fresh LPG Distributorship can be awarded. This Circular, dated 10.03.2000, is applicable to all the areas, and provides for revised limits for the Towns upto 10 lakhs population with 8000 refill sales ceiling limit per month; towns with 10 to 20 lakhs population with 10000 refill sales ceiling limit per month; towns with 20 to 40 lakhs population with 12000 refill sales ceiling limit per month, and for the bigger towns and the Metropolitan areas with 15000 refill sales ceiling limit per month. 9. The conditions on which the Letter of Intent was issued to Mahuwa Indane Gas Service, did not guarantee to him that in the entire area, no other distributorship will be alloted, even if the number of consumers of refills increased, and that no new scheme could be introduced. 10. Learned counsel appearing for Tara Singh, the appellant, states that none of the consumers, who were attached to Mahuwa Indane Gas Service, are receiving their LPG supply from the appellant, who has been awarded the distributorship for Mahuwa, and that on the date when the dealership of Mahuwa Indane Gas Service, a Proprietorship Firm, was cancelled in the year 2011, he had more than 8000 refill sales per month. 11. Learned counsel appearing for the Mahuwa Indane Gas Service, has not been able to satisfy us that in the entire area, no distributorship could be allotted, or that no new scheme could be introduced for the convenience of the consumers. 12. 11. Learned counsel appearing for the Mahuwa Indane Gas Service, has not been able to satisfy us that in the entire area, no distributorship could be allotted, or that no new scheme could be introduced for the convenience of the consumers. 12. In any case, we find that the rights of Mahuwa Indane Gas Service are protected by the interim order for the consumers registered with it, and that its agreement/Letter of Intent did not survive after its dealership was cancelled. 13. In the aforesaid facts and circumstances, we allow the Special Appeal. The appellant's impleadment application is allowed in the writ petition, with a clarification that the award of Rajeev Gandhi LPG Distributorship, for the area Handiya in District Dausa, to Shri Tara Singh and its consumers, will not be affected by the interim order dated 11.05.2011. The interim order dated 11.05.2011, passed by learned Single Judge is modified to the extent that the appellant will continue to get his supply from the Indian Oil Corporation for his distributorship, in accordance with his entitlement, for the Handiya area, for distribution to the consumers registered with it.