Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Public Dilstribution: Petrol pump - Retail outlet dealership - Special Discretionary Quota |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Public Distribution: Petrol pump - Retail outlet dealership - Special Discretionary Quota - Allotment of retail outlet dealership to respondent - PIL challenging allotment - High Court cancelled c allotment on the ground that same was vitiated by favouritism - High Court directed that in case the allottee whose allotment had been cancelled was unwilling to sell/part with a land on which the petrol pump was being operated, Corporation would auction the right to open petrol pump within close proximity of the existing location as may be determined by it depending upon the facts and circumstances of each case and the need of the public with the stipulation that the highest bidder would arrange for the land! superstructure for running petrol pump - The decision of High Court became final a>id binding on the parties - Accordingly, Corporation issued a notice of termination of dealership agreement to respondent E - Respondent intimated that she was not interested in selling her land on which the petrol pump distributorship was underway - Corporation thereafter issued advertisement to auction the outlet hitherto allotted to respondent - Respondent challenged the advertisement - High Court stayed the operation of auction notices F and directed Corporation to permit respondent to run the dealership until the auction was finalised - As the auction did not take place. the High Court considering the fact that the respondent was permitted to run the retail outlet since 1998, directed Corporation in view of its new policy to award fresh dealership to respondent and restrain G from interfering with her possession of the said premises - Appeal by Corporation - Held: The direction to award the new dealership to respondent amounted to perpetuation of the undue benefit, earlier bestowed on the respondent by a method held to be illegal, dubious, arbitrary and transgressive of public interest - The award of new dealership to the respondent wholly undermined the purpose of cancelling her earlier dealership and annihilate the very objective of securing transparency, fairness and non-arbitrariness in thematter of distribution of public contract - In taking the steps forinitiating a fresh process of auction, the defaults and derelictionof the Corporation and its functionaries are writ large and stronglydeprecated - Dealership of respondent at her present location is cancelled - Corporation directed to cause an in-house inquiry tofix the liability of the errant officials on the issue - Publicfunctionary.Public functionary: State largesse - Role of Government asprovider of services and benefits to the people - A public authority in its dealings has to be fair, objective, non-arbitrary, transparentand non-discriminatory - The discretion vested in such an authority,which is a concomitant of its power is coupled with duty and cannever be unregulated or unbridled - The State and itsinstrumentality, be it a public authority, either as an individual ora collective has lo essentially abide by this inalienable and non- negotiable prescriptions and cannot act in breach of the trustreposed by the polity and on extraneous considerations - In exerciseof uncontrolled discretion and power, it cannot resort to any act to.fritter, squander and emasculate any public property, be it by wayof State largesse or contracts etc.Contract: Petrol pump - Retail outlet dealership - Grant ofdealership to respondent to nm petrol pump on land purchased byrespondent herself - Termination of dealership - Award the new. dealership to a third party on her land - Held: With the terminationof the dealership, the lease between the parties also stood Fextinguished and therefore, the respondent being the owner of theland and she having expressed her disinclination to sell or partwith it, the Corporation by no means could have contemplated to.award the new dealership to a third party on her land. |
Judge | Hon'ble Mr. Justice Amitava Roy |
Neutral Citation | 2017 INSC 1237 |
Petitioner | Indian Oil Corporation Ltd. & Ors. |
Respondent | Shashi Prabha Shukla & Anr. |
SCR | [2017] 13 S.C.R. 268 |
Judgement Date | 2017-12-15 |
Case Number | 5565 |
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