Karnataka High Court
G V Bhushan vs Union Of India on 13 January, 2010
Author: Anand Byrareddy
Bench: Anand Byrareddy
M./s:,E\/!.S.R.Ser'\==i<;c SE:.1tinn,
Tzkgore Circie,
Gandhi Bzm-122:'.
Bz:sa1\=z='1ru1gL1di, V _ -V 4_
Bait-1 gal01'e~5(w() rm. . AA 1: P&{"3'%1."I'i-rJ)raJ;:;.;;s;;, A
Q'{bF aeawi Vg_,9;,-Mp, Jimwmfix, V V'
(By SIn'i.S.SL:bhasI1. for Knnmf .:mcE._ K:,1:'Imi_', »;éxc§.yVg):':uLe fr)?
Petiti<'>11e:'s)
AND'
1. Union ('>f"i:}c.iiu, _ __ u
Rep1'ese11tc§f by iL.fi._' 'Sc¢i"e1a1fy;"~./,?' ' * .
Mi11ist1'y{ (')f :PetVro.Iveu1'f: 2% fad I_\Ta1_E Li1':.iI' 'G113,
G(')ve;1'i5in';i;:--.:at"'<'>f;§ndi;;;.__ " '
SI"1z1st:"j.5VB~-h yarn. b A' A
r~4¢w:13¢'}ii;e. " '
§V1'fs.incIia-1n Q}FA:_j(.7_ti1'p'OiiiIKm Limiicd.
RC[)Vé'caseA;1LcLIV' b 3" 'é.{'s" C}{}jn€ :1: I M 2:11;: gc r..
_ %No.46/r>._ 1*'v:~1m--.
» ' La1Tb.:1 gh R&.iaJV,_ _____ H .
13i;:;;;%; géif<>}'e--56{:) 027.
Ev
AI\/J':/4.é".~«!::{v_i::L;i'us'ta1n1 Petroieum C('):'p():'L1[i()11 Limited,
Rep1*c::éicz71'iecf by its Senior Regional Ma1nz1gc1",
In-di:m"Exp:'ess Buiiding,
A_1n'bedE<ar Vccdhi,
' Bafig,_al():*e--I.
41: H Biaallmia Pcimhsum C'<'n'pm1ztiuz'1 i",in'1éicd.
R(:pi'c'-':.\;tiEé1Cd by its Scnim Rurgi<.>nui a\-'1;m;ag<=3:'.
Bhurath Petroimxln C0rp(')rz1[ic_>r1 L.iméLc:{i,
No.17, Du Parc "I':'imEy,
B;-i:1g;:Io1'e--I.
Lu
5. !.B.P.C<_)mp'.-my Limited.
Represented by its Chief' Ddvisionttl Mztmtget'.
H Ffonr, Rzmka Chambe1':'~;.
Cunningham Road,
BLtt1gLtI(')1"e~ t . . . . R
(By Shri.V.K.Nurayun;1 Swanny. CeTc1'_1_:;1;;tl.__G('>v_ettimet1t Cm4_1nse'eiV_ {($11 a
Respondent. I_._ _ » A
Sh.1'i.B.K.Sridi'1a1', AdV()CEit€ fbr ResphndC__nt".2 zmd . S11.!.'i.R.G()pLlI£l Krishna, Aclv<)e;:{e' for R'e_sp<)t1den::.'5;. V Resp<mdent.3 served) Thest::'v»'te:e4«:: Pe't';:1ong-1~;;tt4e- f_j't I~:dRt:1n{;ie1' Atiicfes 225 and 227 of the C(')r1stitutVi.Qh---téf"111di;1';V pt*zA1y=E11_g t(>fdecia1'e to the effect that the MS andMI*iSAE){t)1*d'éV14"<>.f"».f'9%)8 _ftéh1eci Llndfil' Sectitm 3 of the e:»:se11tE;;I £T't_)111'117w'di;'ie5 'I954 by Respondenm and the rnarke.tii":g '£liscipVl'i'r1e*._g't%._i'§1eli~nes fratnecf by the 1'esp(.mdents effective f't':.)_'t11 _l2f5_.9&_§ :'11.'e'_.*t:nconstitutionul. ilfega-II and nut] and v(')Et1_:-:ndetc.," ' "
' -m_\2_vt'<:AT §*"I+;*;"t['§I%%()N N;§}%4'()4(.>8 ()1: I999 (GM-EEC') S I": A .=..i t'dbhLL_ _ *._S0n oi"T.AT.A1'u1mtkz-1m.
" about 47 years._ " .P':fr)p_1j1iet0r: M/:»'.Shakthi Service $1.;-itioli, I'BPI")ea=1Ie1"s, No.2 E. .. ..et0"' 'C' Mm, 6"' Block.
;\»-'I'a1_<_gz,1tii R{ md.
l{:tj'.1__§i11;tg;tt'.
B1,-1 mg;-1I<)t'e«5($(.} U 1% ... PIt.iT!'I"IC)I\5 H R R95, flaw: \i§L'3Lkrrv\.c5. §C.g,a.»~rvwé'~» , »_§mvw'"~.. C-*1'"'U~"'*"~-'§-<:'3-',--«?'_!'1o, "."f .. (By Sh1'i.S.SL1b!13sh, for Kumur and Kunmx'-,":'* Ad\}U:*':1~:t§""ttlfyp Pc:t':ti011e:') AND:
I. I.B.P.C0mp;my Limit<2d; .. V _ Represtsnted by its Chief 'i'}~i_\f'1".<;.i(>11aI EV4.;1_r1'21{._:¥~:1".
11 Floor, Rzmkal Cha1mbe1's_,..._ CL:nni11gham Rc)a£iL "~A, VA A BunguI01'emI. ' B harat h Pc:tVr*o.It: u m C(irpor;1tE'of1--,Limi'E::{E. ?
R€pE'C§C3f.i{€£j§}?')#\,{ its"--Sc:iqi"<5:" Regi()14raH's7I21na:ge1'. Bhélréith E3_etr'c-}'E'&.g1n'~(j¢.)V1';:Q_ri1tkm Limited, N0. 1 7;..I)'L2 E'?;g1'c T1'i--1aiE3.»'. ~ A' :
¥%:'111"ga!Q':':c-- I .71: ' "
3. Mf.s.fndi;11". Oi F:"C'_($E';a__g§'t~21[%m'1 Li miicd. E%cp'I'a_$C1'2§:ed' by its" G::'*z1e1'21l Manager. X -Nc)_4(3/i), I"-¥*E<'>a)'1-'_ 1;J%bz1gl1 Rmd, _____ H B:€it1g£ii£)£'C--56(} 027.
4} V M/s'.'§%I_i_:1E1L1s:z'111 P'c:E1'<)lt':um C0rp01'ation Limited. " I{e';51'e:;'e11£cd by' its Senior Regional Mz111age1'. *~.'-rxdiz-:11 Expless Buildinw.
._ Afi3bc:d}<a:'\/'ee.dE1i, Bz1ngz1E0ra~« E .
.V Unéml of India.
Ri'3f)I't3.\'L3l1[L'd by its Sc.<.'x'<:t.:1:'y. %\~'I.ini$::'y of Paitmlezzm and Nat'LI1'a1f GLIS, C}0vem1nem <)i"I11dia, E5 (3 AND: -
1. Bhzlruth Petrofcsum C.7<>1'}7<.)1'a1Ei<)1i"Lii*.--1_it}:d. " y V Represented by its Scluém' Rg:gi(_>:1':-1.!v_ §\"/i::11ag_ér',fl_' Bharath Petroleum C(>1'p<_)1~;2.fi(s1] Linlitr-:.d.'Vw.y N0. E 7, Du Pam: Trinity, VV .' BangaE0re«--l. ' .
i.B.P.Company Limited, _ V %_ RepreSeI1ted'b__y its'C}i'ie;v?':Diy.i$Li.()1':a1 J'/lfinziger. H FE'-"-"'-3_.vRa§;?k& CF:-u11';D%'i;S. 'V Ctmnjn'g'%'1211"is..R;§)2idg_ V' ' " ' l3a1iagizEg')r't':_--V!;'A_.
!\J DJ M/ [I1diAii5n.'v{).i_EV 'C(')1"p_(')"i' :-1,1 ion _'Li mited. R"u:p1;c.sci'1:c(i 'by. .G'c.nyé,;:a1! M axmge r. N().4(7/D, 1"L~FEa(>.g.§1'.-- ' _Lz11i3z1§%1 Ro.:,1_(L A "
BzI'wga1(.)1;E:45.()(} 0:7.
' M.gS.Hii3.dL1S[1l11 Petroleum C01'po1'ation Limited. L1 1' T.Rep.1*csié:nte;1 by its Senior Regional Manager.
" Ifi(ii$;1'_n__E~:§pi-'ass Buiiding.
An1h_'Cd.--§<£1I' \/eeclhi, B'a.fig:11<)1'e-- 1.
V L_ U'1":i.<.>I1 of iradia.
R::p1"escnte:<,i by iis S<:c1'Cta1'y, 'A %ViinisEry oi' Pcrtmfcum and §\%:1tL11'a:E C}a:s._ C30\='c1'nIm:m of india.
Shast1"y Bhavzm.
Nazw Delhi. RESP(f)Ni')ENTS (By Sh:'i.B.K.S:'idhar, Advocate for RCSp0E'1dt'iI1t !\{'(5'-- E . .3. '¢:':.£'dT : ' Shri.R.GopaIak:'Eshn;1, Advocate foa" Rc:sp0nde_n.t..N_('3».2.'=._' ._ "
Shri.V.K.N2u'ayz-111:1 Swumy. Ad\I(')cz1t-c"f(;:s'-.Res-p(')1jg!em'4N0V5} WRIT PETITION No.37!5(> OF 2()(){3£_CiMA}'ECj ;_: '' » = "
BETWEEN: § $ M/.<.Srin£vasa-1 Service SE}.1I~~£.gj'>:T, Pmpritztor. ' ' Y.M.Mz1riyappa1, EBPDea!ers, ; _ Go1iaral"u=11Ii., H<'m:T21ha1HigTi1}¢5¥'kV. ""'"7..__ V ' S!1i111(,)g;i%I)i's{;~jj,;?f' - ' R c p1'L'I1l(i{{§' hc:"'c~in.. 15 y T Eyéfw __r:)"(~,«.y,--c1' -0 f' A i '[():":1:>;,-- l~h_3ide1' Sn.s.nn.va1s*C3;:fi'; .,. Pl:£'TITI()Niji.i"{ (By A. S.i11'1.S.SubEm;~..:lv'1, 170:' Kumau" and Kuanur. Acivuczite Em' Pet_&ii*,g):1ci') V A' V IT « § :,"B_,Pv.C<)_1ij.;3u:1_v Li mited.
E,..»' , Re'p:'fc~se':TtVé3d by its Chief iI)ivisi0nz1l Manager. II .}7~lr._>Q':',A Ranku C l1zm'1ba2rs._ ' Cémrmingham Road.
L Bar'ig;1l0:'e-«E, 8ha:".1Eh Pct:"<)E<:Ltm ("<)1'p<'>1';1:inn Limitcci. A Rep1'c:..sc:zted by its Senior !{cgic)11a-ii Mzzzmgcl'. Bha E'E'1[.h Patrols LE :11 C_'o:'p01'21{ion Li mired. N017. Du Parc Trimty.
5 .~ §"-§>, f 9 'V . . } . . . .
eitecuve from E2" May 1998 am: unc<.m.s'11Iu1ional, zilcgal and nuli and void and em, WRIT PFITITI()§\' No.19 I ()6 OF 2()f)f) (C:l\/I--Rf§.S) BETWEEN:
SI'i.B.CI.ShiVE1p1'z1kaSh£.1 Mi:-ji.
Son of B.P.Gangz1dhar.
Aged about SE yeaws.
Residing at K.R.ExEensi0n.
Tumkur--572 101.
Q? _ K9',/§J"é. #19,:/rvxm§<z--i T,"'5"*5"~* (By Sh:'1.S.Subhz1sh Advocate 2°01"«P<3titi<m.{::j E . Bha119;1.[ h VPf3[I'{:1.:lE£l.1 ii 1. mfgjga ration Li milcd. I{ep1='«:4sc:11teLE"bj9¥i1s.--Se:1iO:' Rcgi0naE M2-111a§1_c:1'. _BE'1z:1:"a'{i1 I_5ct'iL).,E«<:i11'va1 C{.>rpoa'at§m1 Limited. N0. 1 7, Du"§?;11'c Tg'i11i1yz V' [r§;1;1_,gi'a1g):"e-- I . """ "
% ';'a4V/'Le.It1d.j':.u1.1~(f)iE C01'p(.)1';1tim1 Limited. R€pr€i:;efi'Ic(% by its General E\/Ea.1:1a1§.;cI'. N__:_).'4(w!~D, E" F1001, .Lzi'§«bz1gf1 Road, B'aI1ga1(n"e--56(.) 027.
i'vIfs.1~i%:1dL:sI;1r1 P:3t:'<>i::un1 C.'(a:'pnm:ion Limited. 1 Rc.§)I'Cs€'11[Cd by ilx Stsniuz' I{c§-'zimmi M'.-1:1;1gc:'. Indian Iixpa'€:ss BL%i]dil1f._Z_.
Ambctfikur Veedhi.
B;-111g_a10:'e-- E . g
4. I.B.P.C0mpany Limited, Rcp1'csCI1tcLi!3y its Chief Dix-tisiotiail z'V-1;1iiz1s_1c1'. if i'f(')t)1', R£1l'1i\'£,-1Ci1LH]'ii")L3!'5. i Cunningham Road, Bangai0re~ E.
5. Union of Indi:.-1.
Representcci by its S€CI"6tiL1I'y, _ Ministry of Petmieum E1i>'.{'i.i\iL1tUI'&1Aii"':I&t>L Government of India, 'V Shastry Bhavan, "
New Delhi. V -.,_..._i'~--RESPONDE,NTS (By Sht"i.B.K.Si'idha1i'. Ady=g_>V:L*t:.tc 1501';R<:"§'pt)i1d§;--!:*i 1._ 2 and 3, Shfi.R.G0pL1iiligifi-$'ii1i1;E. A§_Liv'Q¢:;£.t:e f}>'1*'~.,Rc_spuiiat§ent4. Si1l'i.'\/i.K.NL1l'LIi§-'L1I1;i'"S\'y"VEt'i]Ey',_ iiC.7ci_i_t:r;'.1§i' Ci'mI»c1'iiittc11t C0u1'1scE for i'<t'SD£)!1LiCI1{=i'5ii) i i V V . This Writ Pe~ti'tin.i": isiifiled under Al"EiL'iCS 226 and 227 of the Ct-_)v;.=i;»f--i_.itL;;ion of I'l:'I(ii&1,w§3i'21yiHg to deciaratimi to the t-':E'i'ect that the t1l1&'i'ii'HiS'~.D 0l'Lit3I' of 1998 fmmeci under Se<:tion 3 of the A'<;'.V§.s"'e«:1ti;;2vE,4 'C(_')'ntiI1'.-£y=)(ii[i€S Act E954 by the Respuii(ici'at~l and the "'z1i2titf}<.<:1'i'iig~.disicvipfiiic gtiidcliiies t'1':--zi'm3ti by the respondents (3ii"i':t3Li'i[i\'C t"i'(.>é.h7ii2.4.2(.)0i are unconstitutional, iiicgai arid mill and vain} and etc W~i3..Ij" t!>E;TiT1(i>N No. inst E or-' 2003 ('GM-RES ; Gtimswaniy.
Agcci ztbmut 36 Ycar.~;._ Son of Shiva i.3:is'.a:g)z1.
Pmp1'i<2.t0r.
M./s:..l;tg;aL1z111'1l3z1 Sc1'\:i<:c: Stuiixm. Ku\.~'c:'11pu Nug;1t'.
Mwmv ~~-.¢ ?Efifl0Nmi (By Shri.Ash0k Haranahalli, Senior Ch._L_1nF:_¢i for I?_e§§i'ti»t3nei'};_ " ' AND:
E. Union ofindiu, _ _ _ _ ., Represented by its 'Secr<:t'a:_1fyf';;_. } _ _ M i11i:.~';i:'y 0 E' Perm le L}_E]]. z-.31.! V asitu rifl. ., G()ve3:*:1:11t3i':1E'0!'II1€flAia. '.: bL ' " I Shastry§3h' f"V" 3:
New ;'{fi)Hc'*E}:«E. , w M"/§§;'_ l I"1d.Vi.:d l1 0 if "CjT(>i'"';;1§i1"ztt km 1 [ji m E ted. Rs: ;.";1._1:~:«j: 1"it{§aI" E E}: E" R: It'! E- M am gt: NoAfinx1¥Fkmn,"_.
L2.1Eb'agh R()7£u'_1, 4' x . -Bangz1'4i"0:j¢--:?6{') Of:-7.
MR Hh1L1L1s1a1:1 }5Ct1'()}cL:1n C()1'pm'aUm'I Limited. Repates-;.:;{r)i't:'d by its Senim Regional Meu1ger, "i_nd'%a1V:i F:xp~:*e;<:e Building', " ' Arxzbéicfikiii' Veedhi.
B.g1'n'gu}i)re-- I .
__ B'hu1'uE§1 Pcfimlcum ("'.01'{)m'u1i<m Limitcsd, Rep1'es'::n1<:d by its Senior Regional Muragctr. B11£1E.'E1Eh P€1'1'0[CLIl11 Cforporation Imnitczd, No. E7, Du Para T1'mit3-x l3amga1(>re-- 1. 3
5. l.B.P.Company Limited.
Represented by its Chief" [Divisional Manger. ll Floor, Ramka Chambers, Cunningham Road, Bzmgzilo1'el--E .
6. The Regional Director, Anti Adulteratioh Cell.
(Miiiistry of Petroleum z}»z'1d.__ Nz.1tLii'z1lGus, '-
Government of India.
Southern Region .l\lo,9.
Brakzttliaamtl S{l'C('3l"._-- _ 7
l\lur1gainbakkam. T _ 1 _
Cheiinai--6(ll'} * " RESPONDENTS
(By Slhji.\/._l{.Néii.2t3{;ita2'i Swa«.ny, ~Cei1ti'al Government Counsel for R€Sp()E"i(l€11l;'N().'l ii . 9' Sllfl.8.K.S'1'l,di1Ltl', Q?'-itli/oe"z.i.te_il'm' Respondent.N0.2 and 3, Shi'i.A.R..G<._)pa-:1.' Krisl~1:i'ai. Atlfiocate for Respondeht.No.5 2,-ind 6) ._ _ .1'Fhii's;t_VV'ilv'tPetition is filed Lmcler Articles 226 and 2'27 0:" the C o_nStittttionloli indie. pr:iyii'1g to declaration to the effect. that the ;im.--i HSD order of I998 fr;-imenl under Section 3 of the essei1t"i:.1li'1~C'om:mxlities Act W54 by the R6-3S].")()E1L'lE3l1l-l and the :'11aitl<etii1g cliseipline guidelines frairiecl by the respondents " ._et'fe<;i'i\='e from l2.4.2(')(_)l are LIUCOEISEl[LlE'l()11£il. illegal and null and told and ete, |\.) WRIT PETWION NO. 21565 OF 2003 (G.?\/LRES) BETWEEN:
M/s.G.E\!.I\/I:-lhuie, A p:,11'tm::'ship firm registered under .. PI.-1l'tI1€I'Ship ACE, 1 _; _
l)ea1<31's of Hindustan Petroieum C<s:'p('>ra'H*i_mfi L.i1*n*ir_._éd,_ _ Main Road, Ank0Ea--58l 3:4, " -
Utta1'a Kannada, K:.11'n:.1t2.1ka.
Rxpresentcd by its Munaigizig.Wa:ft:'§r31j Sri.N.G.M21haie. " 1 So 11 01' G . . M :1 h':,-fit:
Agcd 48 Y'ca1"1»'s,*-- 5;_ x V ._ R 65 id i fit' C}.Ma{!§é1'}:3_ 'i7-'~.**,_{1"4)E<:.' LI1'fi"B Li nk. A11k(_)Ia*.,_ Nm'LhVC"::na,zf:§1'~f)isV£.19i'C--!:..' % PETITIONER (By smi;v.P KLI'EkVzi1':1;i.;./Xd..y3i)c:*{Ie fo1'Pe{iEiom-2:") I. ;'U:}i():1Oi"-.EAn{i'i2i.
" R;<::p1'<:_sented' SC<:re£;11'y I\/iii1isi1'€;5_L)1'"PcI1'o!eumand N&1I.Ll§"ai Gas, " T _CJ"\')_V'.€:3;iV'iI}.3VE3"1'1.I of'I'11di2'1. _« SVl'1zif§'i.1_'y van.
N;:«.-':_>;;:Tr:i.
§\'i';{$.H4iI1dL1SE&11'l Pe%i'0Et'.u1I1 C01'p01';1ti<m L.imiu:<.E. A "R.a:;51fese11ted by its Senior Regi<>11aE Manages', A Hindu..s{ztn P'et:'0!é=L:m C7o:"p01":,-1{i<m Lixniied, Se1mbI'1a:1jE Road, Rani C'.ha1m:,11zm1;1 N;1;_za1*.
Z iv.)
6. Be1gau1n--59(.) (){)().
M/s.I11dia11 Oii C(_:n'porati(>:1 Limited. Represenied by ifiss Genera! Nlamager.
§\'o,4(w/I), I" Fioor, La1%h:'1gEa Road. B;i11ga1ie)re--56() U27.
_Bl1arath Petrolemn C0rp()mtion Lmsited. A' . . Represented by its Senior Regi.n)»m1.I._Man;1ge$F;"ef' Bhalmth Petroieum C(:)rpor:1ti<>}j1 Limiievdg '' ' No.17, Du Pare Trinity, b A' >' Ba-1ng:,1E¢.)1'e~5()(_) ()0 E .
i.B.P.Company Linuted, V V' Represented by it5s'"C__hief}D'i'vE'5:;e.i(}z1a"§e~.13/iamlger'. 11 Floor. Ralnka Ch'a.11'EbCI']~T. 1 . V CL111i1i'13Uj'[1z1 m 'I%'.tV'):1{i .j. ' . 5:' '. . .
82111 5111 I :'11'e'%f3'('z(') ' (elf) E"; ' .. ' 5 . I.) .u'C7.lJ;A111r,,i K L1'z:ni1 HPC M<'>b}E'e~{..;1h"-€j)f'ficer.
' (fifjéizfe of {fies !1..eg.iv<>11;1i Mange.:", it-I'1L1:;1[j.l'.l'S.{;_.:.lI-1 Peémleum Corporation, _ Complex.
V. KafE_p;1E33;-KL:{E1e{!1z1t, EVE z_-111;ga1V§:">:re .
' ..Regi(_511a1l Dire_cE.0:', (3e;..)i-'€rnmen{ of India, Miniszry of Petroleum and ?\§;'-1tur:1l (£215, " Anti AQLEEII";-1Ii<)11 Ceii.
Soukhern RL':g.in;1. §\50.').
Bra1n!<aEI1211n§w;1l S{1'e'eE., NL11'1gz1:11bz1k§xznm Chen nz1i--66() ()3s'i. R E,SF'()N iIJIr.iNTS % I5 {By Shri.V.K.Na:'z'1yuna Swamy. Central (3cwet'1'11néI1t C(5a:L.fis;{E""f7<)i; Resp0nc1ent.N0.1 zmd 7. __ ._ Shri.B.K.SricEh:;1r. Adv(')cu1.e fht' Resp( *;11"Ciei2I,NQ.Z._3{md S§'u"t.P.i.).Vis|1wan;uh. Anlvoczlte for R;spozujcl:nt;N(.).,5') ' V WRIT PETITEON No.3597() OE' .»-"2.().(}3 BETwEr_;_:_:\_3_; % X M N.Sampath Kumar.
Aged about 55 Yezms, Son of Na111_jL:11duppz1_, Proprietor. " _ ' lVl."'*;.S:;1I},{;l__SCi'-\'ai'C't)fS,§L1§i0_fl;' " V D1'.Rafliu1Tniii'=RQ;uE. :fV "
' Ba:%ag;1toreg5é(%) (i)2_rg . PE.T¥"1"I()§\%ER (By Sh:*a.Ashok».Ha'a":11mhs.1}li, Senior Counsel f0rP<:tiIio11c:') "; . VA U :'°1'i(.)n _0"f7_l'21Liia, ~ - _Re.;)'i*c_S'"e(i{e{i by its Sc:cI'e£;1:'y. ._ V.Mi:iis,1r),'.T'§)'E".Petroleum and Natum} Gas. ' V G<}\jé'1"firiVént of India, SE'i;1st'I§? Bliaiva :1, §\u;~;a= Delhi' ' Rf ..5§'v'lfs.Hindustan Pcimiculn Ca)1'p01'2:2iiu1'1 Eftmituzai. Rep:'<:se11£ed by its Senior Regicmal J\/3Lit'1L1§._i<:t". Indian EXp1'€.$S BL:jE(iE.n;_;, A1nb<:dkz.1:' V*'.;'.ti£§§"1i., ?> lb B;1ngz1§0r€w E. 3 'T.Rama1na Babu.
Senior Regimwl I\/Ianug,e1'«Re1ui}.
Cfcmstituted Atiomey. ._ ._ :\.'I,-'s.i--iinlalusum P'CtI'UECLlIT1 Co1'pm';1£i<'sn Li::':imL lH._ V' Rcp1'c%.~;cmcd by its Senior Rcg_iona! Mzmgc:'..--§V__ V Im!i;.m EXpI'6SS Buiiding.
Ambedkar Vcedhi, _ _-
Bz'1ngz110re.--i.
(By Shri.V.K..Narayana1 Sw:.1m_\/r. _C'ent:":-11 C}r_)\-':é1":3I°.--i<:»r)fV (_7<)Li3t1si2~l "R51? R<:spon(iem.N<_). I, Shri.C.M.Desai, Advocate for Re'§'p{')Vn;iTcnt.N(:._ 2x:1'1i:(i 3'}; 'é'.fl1is--.W1ii't' i9e5i.ét'1jort"ies i"i_*!::(} undcr Arficlsss 2736 and 22'? of tin? (i7()I1.<;§i1m«i(.>1'1* of i11L.i'izi,L;V' V§)'r'2i~}{_i i':g~'[n» L'lecl;n':1té<m £0 me cifbci aha: me MS amt HSi).mii::1"7Uf'w..l".9'38 f'ra1ncd under Sisclion 3 mi' 9;:
cs;sea3ii--a'l_ CR>1'i':mQLi'it'icx /5\Ci E954 by the Resp<m;'Eer1E--t and the 111;1_:"K'~r-3ti:a3g &isci}j'iin.::____'guictctines E'r;:1m-xi by the :'t:a'p0m§c11t$ V ":;.€.T1"éL'%;'i_\/"C :"i':'o'r;1_E2.4.2()(}i are iJnCt)f}SEiELI{ii}I1Ltl, ikiargal and mm and L "mjgi V2.;1'tt§. »e'1'e: V * Pl::LTi"E"i()N No,5323E§ OF '2('}(')3 (GM-RE-S') » _ i\§ifS..§c1i Bht.'f;',E"I]E1 Er1t:3.r";31'ises, '' ~.}n_di;1n Uit (7m'p<)r;1tion DcL1§c1's.
.?\"o.(33,'2--é\. C'h:1n<.h";ipLn';1 _ A11c§<L1l~5f>2 106. $9 18 MS and H81) order of 1998 framed under Section 3 of the essential} Commodities Act 1954 by the R6.\'])(31'ldf3i1I~i and the mzlrketing discipline guidekines framed by the respondazms cfE'ec1.iv{: from 12.4.2('){)3 are iiaicomtiiuiionzil, illegaié and null and void and cut, WRIT PETE'FI.ON N0.43033 OF 2()(.}4 (GMMRES) §3_ETW EEN:
M/s.S.P.Ageiicies'.
IndiaiiOi1 Dealer', Bzinnerghattz-'1, B2mga10re.»'36{) 083.
A PI'(\}')I'i_C"i_vL'!I'§'-"*CUEfC;f3vl'I'l. 3 R C D! c: s;§:'at'et1"'r;>gy:{5 U . Vi 'u?)i"'zi»i_i1'zi my 2:, V' V P1"(')])Fi'L"4L£)I'.'.' P§3'I'ETl(.)NE;R (By S1'11"i.S'.<.SL1hh£15h 'A€'<_i'1<__'..Kuniai' and Kumair. Advocate for Pt'.iiEi\)i')f:'*,_1':) 2 i ii' i\/Iv/_'S'..'§'.§:}':(V.iii:;:11"1 Oil C0:'p0i_'ati<_)n, §_,2m§%¢&, R'epr€:éented by its I)e;"Jmy General Manager Aafsd State Lever} C<H):'dinat0r, ' No.46/D, 1* Floor, Luibziggh R<"):icL J .7' [.3;:z:§g;.11(')i"€~56() (237.
i Si'E.SL1I'{]S£)I] Chzi<;E<od.
Chief I)ivis,ionai Retail Saiics Meziiage1', EV]/S.II1diE£F1 Oi} Corp0:'at.ion Limited, §\i().4(>/E"). I" Flmii', I,z11bag,_h Road. '3.
Bamgalme-56() 0.737.
3. S1'1.P.R.Srinivas, Retail Sales Matager, NE/S.1Hd'E&'ll1 Oi} C'.0rp<)1';-ttion Liznitcei.
No.40/I"). 1" Floor, L,;.1Ebagh Roaed.
B'angz11(')1"e--56>(_} 027.
4. Smt.M.N.Veena, -
Assiszant Mana1ger(Saies) V» b T _ M/sjndian Oil Cmporation {;:1fiiLe d.. A No.46/D. E" Floor, La1ba:gh___R()ad',A.V_ B:-mg:1Io1'e~560 027. A A {By Sh:'i.B.K.Sridha1'. A.dv~r._)flc:=m_-7:'Vf;L$r"{§¢:;%§L:1);ie:1t;Ni). H0 4)
- "I'§'1'i§ Writ'Peifi{}t:11V'i~:;_ fi}f':'d Ltndex' A-.1'{'1»=.'1t::»' Z26 an-;§ 237' of aha':
(_Tm1s'titL1tim:--,_ of lu_diza_," v«p.:';1yi11g :0 qtlasll the <_>:'d':::' dated:
E8 Ef;)'.20_()4 is's'.;.1<;d"ti'§,* Resp0nden§.2 vidc: A11r1e.xu;'eT--T. cmlv in st) '"~.__f';1:'..':_:i'i;; gf..i.:>E'a:i__itioné" '}~_......2"£;iY1("} 3 are c('mce':1'n<:d and hold that tht' V[J:'«ijV.i{i;)I}t°:E." i_S'..,=_10I 1"::sponsi'o1_c in any EJIJ.-£E}11€l' §¥;n'* the uikzged ' _ v':,2.171';1':i<>' Ia. _ 1 1'1 ..:*'c>1.j and etc .. wtm H;;Tij"i§>N M37327 0;: 2004 {(§L\/1-RES} ' *?_V\§'f'fl'.»'--.A"S.P.Agenn:ies. Indian Oil l_)c;1Ic:'_ V' '8;2s':ne1"g_h:1§ia.
B;t1'?:g_:1Em'{:--5(30 083.
A P1'(.>pi"ie13:'y Concem, Represented by in U.V.Subramanya, PI'()pI'iC{()I'. j T (By Sh:'i.S.Subhash for Kumar and KUIIH-IE", ,..4\~.c14'm.<_.'.i1icV"'for PETiTI()NE'R_ Petitions E') A N D:
Union oflndia-1.
Repifesented by its Seci'ei:$1ry;_, Minisary of Petroieum 2,1I1L'i""NV€t'EUI'?.!i G'e--asi ('mvc3r1i11'1en1 of II'.(_iid, V * ii ShasEi"y Bhavan, V New Delhi.
;i'i-/1r'\\'.Ii'i1i{'i'i.i$iiI_1 :C=:1Ff:s)ii';1t ion VIE} mired. R: pre sciifiiecifiiyi its "i)_é'[j»--2ity "Ge E16 ml Miiilvliigel' aiigi ' g.i':;1.*.ci ' i" Coword inaazor. ;?\i<.).«'ié/_V[i?l.vv 1 "' !fIOo_:'ii, ' i;..?,-1ibé1gi1':_ V' ' rm gm re ¥5(1{;}..f..}T.l7.
14» i 4 " ' 1 S';:i_.S;1i i'ii1s::~;V<>":ri Chackoo. Cj'ifii-:.ET_D.i.;Vi'$ional Retaii Sales Ivlanager. M 1' si.il'i1i.¢§'iiia111 Oil COI'pOI'El{iOI1 Li mired, :\§o.4't_'>"/I). 1" Floor.
iL{c_1i"E)L1 gh .
i 'T I3e1nga11(.>:'cw5(3() 027.
SI.'i.P.R.SI'iI1i'v'£lS.
I?.e£a:E1 Sales ;\»"iz.1z1ugr;'.1'.
%'v'I/ss.lm'ii:;ii1 Oil Cc.:a1'p<>i';1iioii Limi1c.:,§.. §'\'%<'a,«1(1.="3. I" F100;'.
1,-;.:ii12: gh . é id}
6.
E3z111g'.:§()I't:«56() 027.
Smt.M'.N.Ve€nag Assistant Manager (Sales) V M/tsylndiam Oil C'uI.'p0I'a1:i011 [,in}itc.sj,~ 5 No.46/3. 1" Floor. ' E.'.11bagh , Bang;-fic>1'e-56() 027.
MI 3 . H E rad L1 s In :1 Pet t__'0"}~r: u if C (:);3"<>.1j2.=.tiLt';--:1 Li m iték Re.*p1"ese.nied by its Se:1i('n*Rc%I'g}()na§V E»/1Va'n:_1g,e1", Indian Express BLkiEV('_iV'1_V1].g--_V " "
A:11E)ec1k;11t--\{bc_dhi;,; V ' _ _ _. ..
f3V!€¢i'i'::'t £1 .:li»?e1z*()"§:;:"L'1 rfi :O';'p<':1'zi_'t i'0ri L': m ited, I?{cpI:csc11Vt€:i"'b»y' 'it_S ' :'":--ig)r Regiomzi Managm'. B3111-u': h Pet;;'i)'Eé_j:11'i1'Cmi13o1':1ti(_):1 Limited. 2'\Eo. VI"T7'.__.' Du P'z:_:'c:V"T1*'i21¢i i_y. , --B:mga1E"u1t_c« i .
i"; B.P'ICo1np21:1y [,émi_ted, jls';z:, p'rcis=t:::"1'£z9.'d by its Chief E)iv'ésé:w11al Manage:'. __ AAll»I?"i;c,)i)1f'R2i11ka Chambe1_':<, ' CL;11i1i:i_:_gfiurn .
Bv~:ing;:'E1')1"e« I .
RESWJNDENTS ("B~3s..4Sl1ri';V.K.Na1'ayana Swamy. CTenL:';'1} Ci0vc1'11mer'1£ Cfuumel f()1' " _RVe,$p<;,«11cien£.N0. ! , .S§ht.'i.E3.K.S:"idhza1x Advocattr f'o1' Re:~;pe'__>1'1den1.N<).'2, 3 and 6. u .._S5111'i.K.SLm'1am. Aclxsocatc fur R«:sp<'m<Ec11§.?\§o.7. Sl1:':.R.Gnp21l Krish11a._ Admca1§.c for Res}_)0z'1dc:"1t.§\Tu 8. Resp(>1'1cE::m..§'~?o.4 and 5 are sc':1'\~'ed} Z
7.?
This Writ Petition is' filed under Atticies 22'5"!_itI'l?.i'--.;:f:7"'(}f_!'i'hé' Curistitutimi of India, piflying to qtizisiiihe 0i'dn&'r"'cE--;itcgii'=.l 8'--.8.2V()(.iz3-. siispendmg the sates Vida /»\1mcxure{C e1nL'iqu«2i:~;hgth_c%«s;_i1o\x,=~'cau.se 7 E}O{iC€ dated: 3().8.2004 vide Annexui'6&-lifaisttii etL:._, _ ' . fs7_\/m[3I'l' PETITION Nn.7--'l22 OF.?JJ_(i)'7 (GM-"RES)tVf?. . A ' _I§_ETWEEN:
Smt.K.\/idya, Aged about 44 Years, Wife 0fSri.A.R:1ghu, R%.'.Sidil1g at Nt>.2{i,' i ._ _ 2'" Main, VzlszihtfifitmlgttIii-EaligELxi 'V }'i't)p:"ic:tir.":«1jof _ V' M/;_s S l"2i's3<-: _E"1i ra ngc r; V I . S ttltio :1. Nu, E;f3'?*. Sl"igtillfiL§(i'ti"'Kttt'£iHE. !§\/iE?_."_&§I:;<%.LIi:_I_\./iL!.V1fl'} . 'A V it ;,z;,;;i'g1:;;s;:%fe» SW) 09 i . . .. P'?.i"i'1'I'l(')i\t £3.12.
),-
:"'{.B:';'."'.SVi'127[EfS_.S%,.ii3'i'iE1Sh for Kumzu" and Kuniai'. A.dvoc:.ete fbr P€t_§ti011eif)i ' ~ * AND;
ii 1"... _fU1'ii(m of Imiitt, Ministry <>'fPt:t,1'nieL1m and N:.-itumi Gas. R<:pres::nt:€:cl by its Sec1'et:.-u'y. Nrrvv Delhi-1 if} ()0 E. Z I\.) '4.) L}; I.
- Z3 M;'s.Indizin Oil C(.)£'p0I'£1Ei0l1 Limited. A cmnpziny registe.rc.d undei" the CTompanie.~; Act E of 1956. having its Registeied Office at Indii.-In Oil Bh2.:V:.in.
C3-C3 Aii Yawar Jung Nil-\1'f_;_Z, Bandrzi East, §\/Iumbz'1i--él()() (')5 E, R'L'p1'i'3St.'-I']LL'(i by HS Chaiirmzm. The Regional Office, Indian Oil C0i'p0i'ation Lilfiitfitiii No.29. P.K8i.i1"1gz11'L10 Road, '' Bang;iiore~56(i) U27 , _ --A --
Represemed by its Genei';:--i_M.;iiizagéi'.__ V The DiViSi011ili ()ff7ir:_e.
1 iiéiiaiii {iii C(.).i;igi(1i';ii'i»(§i'1 Li 11i1_Hii[ié'3(f.
Ni). 3?'. E"1_i_£{!_£"«.il'tv)__Rflilii Bizngiiiore;5V6=iiiiijii2'7'--.
RC pi:€«.~_;.éi1iV€di '0. y 'i*_s" Clinic-:'i' I) i V i 5 innai ; ' 1-hjgiiiiiiiE».M'a1'iige1"!' C DRM ).
¢ ;§'i"i.S;i1iii_s()1i C ha:ch0._ T _ 'f':!1i:;{_i'?)ijvi--uiona:l Regiiiiizii Mnngci', " . V« iii'di.'2_i.ii_(iii'Cn1"poi"2iti0n Limited, NQ I5. .K.E1ii1"EgL1]'£l0 Road, B"211jgi£-:"}()rew56() 027 SriiS.M;1daii:;ig0pa-i1, = M2-man-1gei"--Retaii.1 S21i€;'S. Indian Oil C(..)i'p0rz='1tio:i LiE"I1iiCCi. N029. P.KL1ii]1gE11'2l(.) .
Bzn'1g2'iE<'n'€~56(} (7.37.
3 R f{SP{.}i\i£)i3,i\.%"!'S (By Shri.V.K.Na:'aya:1a Swamy Central Guvcrmnent C0.1.:i'ns'c:]V for Resp0nden{.N0.l, Sh.ri.B.K.S:"idha1', Advocate for Resp:.mdent.N(>.2 ta} Responde:-:nt.N0.6 Served) Twas vvrn Pehtkn1is flied underxartkfies 2£6'and_22? 0fthé> C()IiS{itii'[i(')I1 of lr1dia., pr;1yi11g'a,{(':. dec.1ar.e_: Fthkz itfdéi." dated:
11.8.2006 issued by the__ rr?,sp()nder?i~._<;0I;1p:a11y" «~,zi_c_i-.3 Ain1aexurc%~B, BI, 82 dated: 1.1.8.2066"=susp'é.11di:n'g...zhéxsales and s11;_)p1i_e$ of petrol and petmleum p1'()dL:c~':-3loft-the'i;)c:1i.I:i0'ne1"s mtail ('artist is iliegai and void and set--z1sjd_é' {he S__'c1IT1€ _peti1;:" ins _ 4i*2;;1\£-gt/_a:jg l§e:e:rj" "nc*:1':"d and :'esen*w:<i on l(a.€.J9.'.'.(J()9 ::an(ib_c,=0i'11'i'i3_g ¢'_)'g1:J.,.€.'g.:'1*. pr"<_>m:gu:2VcL::I1ent of' c'arde,r.< this day' 111:' Cmiefi."d&:'iiAv§£reLi file 1"<ii~1gS'\A.ri:3 Uffikmgfi Ti1'c'~_sc: petitions ar-3 heard and disposed of to-gcather having 'r;:ga..rd --,_t('>.'t.hég_c0mm0n issues that arise for c<>nside1'atiun aot\§vith.<1'anvkfifing some variance on facts in each of the <:.ase.~'..
"2, The facts of each of the cases are ba"iefiy I1&I'E'2iE€d 1, ,, V. hem d':1dez'. g 25 WP 3"7E75/1999: The petitioners are tetaii nuttet t,1ez1le1's of petmletnn pa'oduct:»z The said product.<; are sold at their Filling and Service St21ti()ns.
Rt'.'.H'p()l1L§CI}[S 2 to 5 dit'. C(')mpd11t'L'S :'egiS.i'e--:'eclAA«Vt:~iid--et"--the, Cotnpunies; Act, E956 and are all G(we1*na1¢1en_t CV(')'af't{p';t:'tfe.5_fwithin' . the meaning of Section 617 of the Cg)1t:;pz}.nies",4'te't.., objectives of the said 1'esp('wnd.t-tints is t<_1 see1_"1'_=2ié§cEVVVVdist1"ibute petmieutn products th1{)u~gh tfetaiih~~<jL:tE'et.s suetfashx that of the pe1iti0:viers.1n{5.st _eit5es. I§]CWS£liLi respondents themseives dL,'V€I0p":'tj1d_pi'0vy'id£3'IIhe-.__ .I1€C.esS£1:')f tI1i"I'£lSI'i'LIL'1UI'€ at the retz-til <..u1t1e;tS:
Tite .pet.i1i<a1tea's had entered into independent -zieailent,-hip 'a:.gfe_e'anVe1:t§'$v».__w'~i"tEi i"(':Sp()11Li€E'1[ no.'.?.. They are St:11'.d;1rd Forth C<'wttir:_z1e"tsjV. The petit.i0nea's have no say as 1*eg;z-3111.: the terms and eon't£.itions oi' the said <:ont.:'2-tets. The Union 01' India. actixtg under Section 3 of the Essential} Commodities Act, E955. has é.s>st.1et§ an /\ Urde:'c:.1Eiect the I\/10101' Spirit and Higlt Speed I_')ies-el I'l?:eg;a:iz11i(w1t of S11}>I5l)' and l_)irst1'i§>etin1t Prex-'enti«;m 01"?»-f1z11;>z':1et%ees:} ()rde1"._ pr(')d:..zc£s are <:0nce:rned, the same are czompietely g<..averne.<_ji by the Petroieum Act and Rules and the Weigghis and §\/i€£i.é:i3¥'.e"S..V'.£L\C1. Hence, the MS & HSD (_)rd€:r 2005 frzmued LIl1(l'i?':I":"the,:Eg$iChf§»:.l1'1 Chbmmmiities; Act was ultra \-Fires and:{:hCO'1:si¢_i{';..;iiaynafi V V' To add to this 1'<~::~;ponde:ms 2 [L1 Srhave f1_'1L'lAI'I"'ii?(]" \:v:hi'1-t.Aém.~; known as Marketing Discipline uCnuide.1ineS" .({h'eh:f€it1a7§tt:1" referred to as ' MDG' for b1'evi£;Aa);"~.. U1.1Vde:j:1F;e*..V1\KiiDG pre§c1:ibe elzlborat-;~: pr0;:edL:1'21l f()r:naiAi_ties t()'.b*l'<.:.f_'(3.11(.)'W€@1 ;d::'b:11e1's in Ehe cm,1rse oi' SLl§)}i3~.}xy_ (TiifiiI;ib'LH«i,L.)'1'i~.. iizznaéi-E.é_n;g_ fs1r.':a'a1g_€ and 8211:: of the pmducts. The said MDG Vhzivc hm?) :;I:z:it;11'():'),:' basis zmcl are u1'biu'a:'i1_y impose;-;i on «the: 1"cti:§(')nc"r--:-:hundv 0:11:-3r deaflcrs. The s:1:'11t': pmvide for 'p£:.t1';:.1tio$V$uL«h"us_ suspenskm of sale, fines and u::"mimttic_m of the d€:>11'(:Trship'iviselhfl The petitioners seek L0 challenge: me': gL1édt:1ine.s <._us t)cir:gg k:i()lz11iv'e of Article $4 and i9( E Kg) uf {he C::'a1'1sti'u.:1ion of _i ::;;1az;1{.« WP 4{)4()§jj_9j~}_E2: The pmitioncr is :1 dc*.u1cr(.)f'pc12":)Ee.%.:u1 pr<)duc£s, vcrnclmg the same ti11'oL1gE'13 zeiaiii outkzt »-- LEl}i.h','I 3 a_§<:;-1}<-rrship 28 '-.1U:'eeme.nt with M"/:~'; EBP company Limited (the first I'€S]3()i"1d6Ul) since the year 1987.
It is stated that on '3l.').l'%)99, the petitioner W'£1St$'LIppll6d with 8()()(.} kilo litres of petrol from the depot respondent. On 23.9.1999. '.111 inspection .<;quatl ti-lii:t'l'ie.tfeS;por1{ie1it;4 oil companies visited the outlet of tl1e'pet'iti.oii'er z1hdi'took 's:tinip'les i T of the etrol in stora Te as well sum'<>le;~:_t)f the ;-'ie't1*ol de.lli'v.ei"'ed by tzmkers; W at the time of deliveihiy »~ wliic.hi"2t:'ei 1*e'qL1iii;ed to be pi'esei'\etl e~--ii11=l1i'Cl_ ('unitheiiztllegtatioiiwthat the samples of petrol in storage did not Coiil'oif'm to§peei'l'ication in respect of a distillatitm test we-12.: _sei'vetl.w'i'tl"i :1 notice. dated l l. ll). W99. calling upon him Vito.sliowi~--ea;t1Se.__us to why action t)LIf;l'1l not to he tclkcll 111 terms. of it~l_1é; ..,;'»i§3élii€ill_S.l1_l[):;."ilf.;1'€E3lTl€I1l. The notice was reeeived by the petiliiopneitjiotiil23. l.(). 1999 and the petitioner replied on 25.30.1999
i)1'lllgl_Ilg to the attention of the respondents that the samples of .§1,lppll{:(l and storetl were the same anti that was no 'scope for aduheration at the outlet. The fiiir.-t respondent liowevei'. ordered for SLIS§.}t'31lSl()I1 of S£'1le'..~,~ El' 45 (hiya E.-Ii the pe.t§tio1te1".~, outlet, purportedly in terms of ciause--l2 of the deztletship..';1g1je'e.jmen«t.
The petitioner, the.ref0:"e geeks to cltalienge the.pt'"'t)3jriety._ u+"t"he suspension and the validity of the H'_SDf1'O1¢gie1?.'ti':; kI€5:'_{i1€ MDG.
yv~_13___4Q733/199_9; The"'~peti.t£tme;*';':.._§§,i"'at,ciealet: in petroieum p:":t)d1.1ets eng21ged_by left)z"pt.>a'2-ttiun Limiteti {the "first 21 ztgreemem The pe1.iti(>rte_:f§.'g been inspected by the 13e;'xt);:h.;:fE at on E 1.1().l99i) with an industry Mobile Litt'e.Qh1"a.tL):4y._ €i!'}d'«4fi]C)' had taken S£1t'I}}3Ei':S oi' petrol.
"=._SL:1'§§'e(,;;f1.etatiy, cm"'}vt3....E.(}.19')9. the petitioner was served with 2-1 sh<)_\ivi1(_)_tVice caiiirtg upon the petitioner to sh()w--cuLase as to w5h._.\,j' ;1etit.w:1t'j'.:sht)taiti not be taken age-ainst. the petitioner as the s§ampies1._.t21ke fr01"n his outiet did not et_)nt'0rm to s;_3ecifiez;.tion.s 3{} The pet'itione1", in turn, had denied that he had emnmitted an}; z1dulte:.'a::im1 w it was hro2.1ght to the 1'es:po11dem'.~. ::t1emion shat he had no way of iesting the product. The i't?f~'.p0i"l{i{if}{ having thereafter' passed am order of suspea'1sien of the sales u1'1d'._~{i;:pp1ies; of all products at the pe.titione.r's unit for a periL)d_;(_ii"4{S_~ the pcE.iE.iU1'1€1' has. chuiienged the m'cie1' 11I']d»VIht' <;m'I:<':i-I-fitiohui '\»ja1iEVgii1;'y. of mums and HSD O1'dera1s Wei! asghe fg'/E.D:A.'3.é' WP 37 i_5_6/20()() 'i7_he --_peEiVti(.'§::.eV-xj 'cie..éivE--e1"11:1dea* M,/5 fBP Compzm},e Limited. {he i.'i11~:t feajphtrhcient 11uvi11g been a1ppoir:te.d E_.:11df::! an " u e_ ;i§;;1f_{'5<5l:11'1¢_:'iI' 1) i' the y'e--;':.1T...1'3L}5- ", :;'l;.iVi:=1'1ed sham o['§"i::é;1Ir»' of the 1'e..<;p;;>11cE:-ms'; comgaaazy viL~;,i__ted thr3 peV_:ifi(_nr1e1's outlet and drew samples for Easting and was later .5"c:v:'yaed with it notice to Show cause as to why action ought ' --,.r1(:»t. to be take.n for Vi()l£11i()1"'1 of' me deale1':shi;_3 a.g1'eea11.eni' since the " '' ~i~;}.tlhpI€§ ailegediy did not meet the spe<:i1'ied B[Era.I](§«l1.!A(.«i\$x lnspite of am appmpriate reply by the peiitioner «- the respondent eo1'npa1r1§,-I 3 Ki in1p0s~;ed L1 penalty of :~;1.1sp:':1'1$i().n of sales fat' 45 oiays; w _it is Ehis which is under chz1l]ehge.
_\f\M/if 19166/2()()0: The petitioner is 21 L16-11161' of petr@}1c14.h:1:' '_ of M/S Bharath Petmietlln C():'p;()éiiti(>11«'_LimitAed._ mg: 1"'i--Vt¢f§;tbj' respondent in this petition and was a1pp()ih!¢d as :\'_L}Ch'{(fi* :11:41i1:.'1g£':*.;1 retaii outlet under a cleztlership ;1g;"i"e¢'1ha1e11t dé1'i::d""l?€3-:41.17997. it is the case of "pctfstffoa1:et' 'ah_;;I.i611 23.5.2{j)()€) petrol was n;a1;mlicj'«;[i 'f"{'()'1h2A1..:t111t: sfiif:«i;:agé~:,1't':££ (>'£'_"ti1€:' rs$p<amEeni. The. cI«:n_~';§t_\,-F Ti"?-SE cztrried (salt S'!1(>Wijv(11."':f:'1l1i¥i'4;HCt;1«Wiih the 1'eqL1i1"eL'§ :;pccifica-xtiora. It t1':1:1:~;;_3i--re;s' that .011' {he next.' day. an official visited the outlet and V"I2;"1;1x"t:.1k'e:h _ii'*«3z1:'11p1c of the same ;:)ct:'(>I without fhii('>\rvi:1g_ the p1T(_f§p'¢.f'V{):ii}3C,€(itiVi'E§V"LlEd had is.<;uecl 3. showwcause notice .E0 the efftzct thaf"£e:;h'i-VA':'e'p{5:"ts; 1*:-maaled that the motor spirit 521111913 fai1c:d- to meet.' {he Specification with regard to final b0i1mg_ point and was fglace-d under threat c;)fcanct:]Iati0n of the ag1"e.e:11enI. And without ;1ff'0rdi1'zg :1 further 0p;J<'>ri'm1it§,-* to the p<':titi0ner of ;1ff()rding :1 cicf¥.~:n<':e zmd even witimu: any ::]l£tg;1i,§ur1 that the §;c:titi<_:r1c?r was in @ .,.a DJ WP 21565/2()(')3 The petitioner is a dealer of the Hin.<l.u§r*e1.rr'»I?etro3eurnV Corporation the S€C{)I](l respondent he=reiit-s.-:i11€:e'theyear at f On 23.12.2002, a Mobile C'heeE<i11g sc;r.;;1tm;=' me rieéptwndeht » company visited the ;r_eta_il otrtleito"o._f_tl1e pe.titioner and drew samples of the mot<_)1' ith"t.lie'i~:pje._t-'rttoner and a report was said sample to the effect the prescribed standard and therefore .' C)n a request by the petitioner, 21 second testiiasaid to l1a.\'e'.!:§een conducted and a report was said to J"«._Al1a1\.s'e*l3e_ei1 sent triiC1ez.i..er)v'e1' of a letter dated 25.2.2(')()3 by the d__SL'v£}_ii()t7iT{egi(5'r1;il"~"lVlLtr1age1' of the re.~;porrdent - company. to the S£-1i1"t1€- effect}, but with a greater variartee with the prescribed sjtarrdard; 1' Consequently, the second resporrd.ent company - had ,, .,,;rfl'poi§;ed a penalty of Rs.2{.).{)00/- and passed an order suspending V' "';§ales at the retail outlet for a period of 30 darys ~»~ which is eliallenged in the present petition.
§ WP 35970/2003 The petitioner is :1 dealer under M/s Hil1d_1.1';%-i{1I1_ ii P4.4.?_-:Ei"-«ti_)i'i'€:~-'i1i'lr?.b Corporation Limited. the second restpenrjent.' i1e1v'VeinL '7.'1I1'i("iv.'_\V?tf,i't-l.Si"'..VS('ii-. appointed under 21 dealership ag1'eeme'n.t tinted 7.2 _l.9~9Vt.$., " A' It is alleged that on l'~).5.?i(}t3'3,: at:1_<)i"'i'itE'eiHoI' the} respondent company inspected the petiti<.>ne1" st,'if-etfii-is:"(1Eiii--t3E. and drew samples efthe petroi in St{:}Cl<t'.al}d:'it' said officer that on the S£1I';i€ beAiir1;.§g.st:b'§ic:eteédvtt) 1ab.0rat0i'y tests - it was aliegediy found 1"1()i'EVQ"ee in Vr,:_<.>V:i.f't'.>I'i*r'i=§t_t_y'with prescribed stand;-irds_ g"}7he eix;,.lAz1i'ta'tit)i1i' of the pet'ititme.r ciisowning any 'i'esjpV{):1sibiiit_y"«iitst)f't11" as the sample not mtttching the specified 'sttt'r'i.r'_j_;t.i"<£s."wittsirejiected and the petititmer was imposed £1 penaity of and sales were suspended 'ibr a period of 30 days. ist-this which is under challenge.
3 WP 53238/2003 The petition is dismissed as withcirziwn vide mefifio dated i3d7l2(,)()6l WP 43033/2()()4 The i3etiti0ne1" is retaii_ Corporation having been eipptiiiiiteitiiiiituihdefttgreemetit dt1tedl3.H.i984. V i i The 15etiiiiQneiiifs :iet'a.i_l outiet was subjected to an inspection on I8.8~__2(}()4'andunits..w'z1si"t7t')i1g3L1 that there was a discrepancy in entering the devnsiiy m6't»(.)1' spirit in the registei' 1'naintained for this j.1ui'p()se by-the' petitionei" . Hence, samples were dmvvn by the i'=..0_t'i'iee1'i,.ei' the 1'espi)'n'deht ~ company and sent for Ei1'1EliySi.'~S. The ' 1?es'pr:)ndeht tf(3mpa11y thereafter proceeded to order suspension of ._d£1:§,ksiian(i imposed :1 fine of Rs.20,0O()/A. Though this action .Wé1s.«--suceessfui1y challenged in proeeedingggs before this e(.)u1't,".the same punishment was imposed on the basis of 2-1 8 36 subsequent he.a1ring zif_E'(.)ifded to the petitioner. it is this _..yvi1ich is under ohziilenge.
WP 37827/2004 The petitioner is at clealer L:iit}ei*":«h_e?,se.c:)nd«_respoiideiit T Indian Oil Corporation. It is aplieged "th:it'--._the i'e>tv:;1;i}iou3:ie.tsi'ofthe petitioner was inspected by att*t»..V«o'ft'icer of $12.: fespcindent M company on 18.4.2004 ..;1'i:«r;l Si§1H1§)iC.S'<.._V:£¢'I'€' drawn of the motor J spirit in stock to be s1i.bir:c'ted --.to._ Lia'boi'€i~tIo-t'y tests and it was theiezifter 'oe.ia:teidviiy-».ijepoi"te_d'--that the sample did not conform to prescribed'is_;téintiai'd_s.A'._ii/kttd inspite of the best et'i'(.>i't._x' of the 'V.-_pettIii'onei* to estiibh--._-'-h"his innocence -- punishment of 21 penalty Ei}'i(fi_ii');.1,,I:iS'p§3f1'5ii'('),}1i'Di: sales was imposed which is sought to be qttesti()i.1et'1 herein.
3 7 WP 7422/2{)07 The petitioner is 21 retail dealer of the producis of Oil Corporation, the second respondent herein.
The petitionet's retail outlet is mid to i'1éi"ve*---heefi-iiiswpected.L on 1 1.8.2006 by officers of the It is claimed that the totaEi?,er ztfbfi m_easLn'ed with by an un:<iethoii.iiseti.iiperS:a)n ziccoinpaiiiying one of the officers and in orcier gtoi inadveztance, the petitioii__er ._\r'v';i-S V '{:ir,_m_1}i3'ei»le't:i_:to_submit an untrue statement offe.i.'i.ng an explz-tnzttion foe? the h1i*oke'iii xez-11 though there was no fault on her ptirt. Though 'pi"o"ce.e(iii1gs were initiate-d agaiiist the peti_ti:on;e_r +5» thei"'s»:ime were terminated after accepting the _ pet_itione«r's».expiavnzititin. However, the respondent - corhpzmy has imposed of Rs.5(_'},000/-- which is without basis. it is this which izsiieciugiit to be chaiienged.
Z 38 in the above l".-zets, in each of these cases, the contentions on which the petitions are brought are identical. The petitioners in one capacity or the other, are dealers appointed under 2|g,'-7'j3ClTl€nES to run retail outlets. The contract is at stzmdard :lf't)tjhi-e('mltt<£tet in every single case.
The respondent W oil compel1tie.§iihax~<e«_ jt)in.t«lyVlfr2tmed«' what 7 are called "Marketing Discipline Guide.lir':£-38"'. Tldeise "gLii--delinesp lay citiivvn various pi'0C€dLll"Eil l'()rn1éilities to._hee*follogwed in the course 'of '--s'tzppl'y,f'dpisu'ih--titien', "handling, st<')i"ztge and sale of 6[1'()l(:'LEE"{1ll".1'(l)t_l.l.lC[S- etitioners seek to uestiori the l~, V ._ V 'l 'V.__e():1_$_t'rtL1§i_oitatlity oer7----M.SHSD Order and the MDG as being ' _ v io lia'ti_ve:--v.ol" i' "ftmdatmerital rights. V 3. 'Ravi Va-trma Kumar. Senior Advocate. appearing Wfor the iCQ'lfiS€l for the petitioners contends as foll<)w;~;:
The '£'ielt'l pertt:i11ing__ to the supply, di..st1'ihut.i<)n and imtintetiatrtee of qteality t1I'}Cl qttzmtity of petroleum procluets..; are 3 39 governed by the provisions of the Petroleum Act, 1934 and the Rules made thereunder. the Stzuidurd of Weights and Measures Act, 1976 and the Rules made tliereuntler, th.e"..iEsseiitiul Commodities Act, E955 and the Motor Spirit .and Diesel (Regulation of Supply and D-tstri"ui_Istio€n undid 'l3"1'e.\iie£ait.ioiii.. of ; i Evlalpractiees) Order 2005 M vft'arned.__ under S'e_..eti'oi1«. 3~,i'ofii't.he Essential Commodities Act. l'tgis.p<)intetl_ outsthiapt the above statutes cover the entii'e_ifield_'iipei'ttt'iri_ii.i}g~.tti maiiiteinartce of the tiuttlitygi sLiip"riAE..y} _disti§ffii[au_tiimj' and _thesale of petroleum products in the face' o'i"p w'li.ieii._._:'V.tli'e._A_i'several public sector oil marketing C()i13p'£i'Z?l_A€S huv.e 'to§;§etht3t' framed what are termed Marketing C'u,_i_deliiies to be 2tdhere.d to by the retail outlets, such as H t._h'('}.g¢ i't't:i"'_'e.__\,( th;e"petitioners. These guidelines seek to supplement elzthortiite the procedural l'ormal.ities to be followed in the eouiise of supply. distribution, haiidling, storage and sale of petroleum products. it is contentted that the guidelines provide for imposition of penalties, which include suspension of sales, fines and even termination of dealership. The same are uniltiteral and Z 40 are issued without authority of law. None of the afoi'es:iid statutes contemplate or ;iuiho1'ise the ti":i-imiiig of' such giiidelines aiiici L"11"C therefore unconstitutioiiai as being in violation of Artii-z:le~s_ 14, 1_9( i )(g), 19(6) and 2 i of the Constitution of [ndi'._1_.* if The onerous and imitional Ci'lE1_F3.£:i._€_1f ofjthieiiV4Ei.[)G"'isi_'sougliii ~ _ to be highlighted by reference to 21 fe'-iv ofiitiie of which the oil companies haive--.gii"x<.en urito._ theymsrely:eii§"'the power to penalise the peti1ioneif:~;".~.__ The'-dispeiiisimj1,iii'it§.""e1t'the retail outlets are owned and I1"iEli11{&tiH€di"5;\_yi the oil £fg)"in;ijanies. The same. are cailiberated and :1i"e._':zi'i=iiiEe_il with sie'2il:s.._.i.iis'taiiled by ziuthorities under the SWM Act. i..i"HSifi23ll]C€ of short supply can be dealt with under the i}§::':i:\ri(ied under the SWIVI Act. Hence, the guidelines i'~».presci'i'i),i_p3g heiwy penalties on the dealers on aileged e.ri'e.tie i'--.dei.i\-:ei.i'y by the dispeiisiiig units, which are ihcideiitaily duly '-«certified by the oil companies. is z1_rbitra1ry and illegal as the possible malfunctioning of the dispensing units owiiig to various ~11 .1.-1et()i's such as, climatic conditions, emttic power supply_._and the oil eomptihies own wuiit of tguality maiintem-ince in eci'lt'i'i7}:fp'ii3;égvvthe units is completely discounted and overlooked. 2 There are gtiidelines which p1':'esei':i'be 'ilpeit:i1lt~ies f'o::l""t:il.lleged discourteous behaviour by Si-ll€S.%pl€{S(')]], hothprov-isi'o.h'"et7 first--aid and toilet facilities. As the retail-c>Li,t'l'ets"~:i;-e estlailcilish.-ed by the oil companies, the continued iexe_i'ste't-we ofthef'_'iihf'i':tstt'ueture is really the respoiisihility'oiftlie oil eo.h'ip2i.hi"esj,"-..Tlitfiugh the employees at the i*etz1i':l_ outiets é-1l;'¢«':ft.(jmpziithté-tin:2 'minimum level of courtesy W the power E(')llti.Frtpt'.)SL3l . pen"alt_i.e.s on alleged misbehaviour and '_ disti_otti"te.sy is £l.l'lZ)ll'l"'c'127.'.\,.£...-';3.«3'lLl tit t.he will ofthe. oil companies. 'ill'C.§l'&lbllgiliilillg the retail outlet, the design and layout of the
-- st()i'2tge t--:1iil<°s. the dispensing units and other inf'i"z':sti'ueture is i.ftlee'ided by the oil compamies and stattitory permission is obtained ' uhdet' the ixplosives Act, l884, the dealers have no say in this aspect of the matter. l.~}owever, the MDG now provides that if any '.lC{l(')I} is taken} by the 2tLl[ll()!'l{l€§S under the Explosives Act. l884 Z3 for any discrepzmcy, the oii companies can terrninaite the d€LiiC1'Sh§p on that §_}.I'0LII'1d.
Though the Indian Standard methods _<_:.'ft'.. petroieum and its products provides the manner' ih"'uivizieii.$zin"1pV1e§_ ' are to be collected. depending on the:'.pri:.(j/tiet, "
unbridled power to the offici2i1's.._o"t7tthe "oil to collect samples for purposes ('if iist;'e1't2i.i'iiiiiig;-oguatility or oth'er"paru1neti'es ~ exposing, the dealers to piin'is.h11i'e'n:T ut--i<'1er-i£}tei.1~M.DG on the basis of ui1iia31.i_r and iti:ic;:z:t':1te rergioifts on account of improper coilection of S2;1EI1piE:$'é)](Lp1T()dL1C'[SA. "
The. MDG 'Ci('::e--si:-«1t1t.)t provide for any remedy by way of an 2ippe'ai}i('31fV ireivisiizuiu on L1 decision takett by the (:)i'i'ieei"s of the oil c(nn_pz11iies_"j.--CtE1is is opposeci to law and has made the oil (;()I11pL1I1.i<§S totuliy z1uthoritai'iait2. 5 The MDG prm=Edes for penal me;1:~;t1:'es which are inconsistent with the stzttutory pE'()ViSi()1]S governing the~~-activity ofthe petitioners and is thus clearly iliegal and L}£.}(:OI'1.§>'_1'4it.ti'V[i'{'§'f1£ti;V Under Article 19(6) of the C"t)n:~;tituti0n ()f"i'E]:di'c!:?A."{}VV1"E:
guaranteed under 19(1):; can be 1'es:t1'ictet1' tm'r;_1e:'i"{wit.ge)Vn'dViti(5':as namely, the restnctionn; shottidrbe re21'st;')_nabIe _;1nd.Vea.n dnty be, brought about by EegisEa1tit)11. Inuthhe 2j1bsenee«_At)t':anyg legisiative 5:,-tnction to the M136 --'theV:)' _are_ Ii.':}bv1e"'tti'vvbe~struck down as being unct)nst'i.._tuti0nai." 2 .t The :3/IDG b'ei11"s:h ,h.ir~:'31t1ne,t.)t1s, 511055 souvht to be laced on _' c. A V . L,» u.. C the stgiattltery pr('i"v~iSVi()11s and the e(_)ntmetL1aI obligations binding the »;:>eti.ti_t):ters«.a;<eelearly tirttconian and are an abuse of Phwer by the 0 it , cet*np21 i} E_ej:-;.
Counsel for the petitioners supplemented C_'the;é£bt)ve contentions by taking this court through the indix-'ideal petiti(>ns'; to highlight and e:.11])ha%e the ..<;pecifie instances of the 44 application of the MDG by the oil companies IL:~«~~pe'i2i§ii-s'efind teri'0ri'/.e {he peiitionels.
5. The C'0L:nsei foifl the iiztespivindenigp riai:neiii§i,'~..viiShri B.K.Sh1"idh8.I" and Shri C.RaVifi'£'ii£1E1 while 'seekinig fie answer aliegatimis on faciual whuld c:Q_ntein--d. as folieivivsz Thai zespondents are governed dealership agreemenzs m it is pui'e.v.1ii}i/i purported disputes sought to be contracE and therefore is not ajmieiizible I-';.1_\/Width" ju1*'%sdicIi(m. s.Fi1,1*tE1eii..s_ii--ije Ci€i1i.t11"Si}ip agreement also provides for ;.i:*i1ii:'a1ti;.:11 between the panties vs the present disputes sought {(2 be AIA'£17iS€d. -we on disputed questions of fact and wouid iiecessariiy 'iiphzwen' to be refe:*red to z:rbi11'aii()11 under the pi'<wEsic):1s of the '*'Ai'bitrz3iti(')11a:1d Ceiicéléaiiani Act, E996. 5 Without prejudice to the above. it is C(_)ilI€-l.}€;i'3i(}'.._il'i'll§t'tl"Cll€ respondent -- oil companies are Government C()!11p_£lii.iVf:iSv.i.tiS _defi'u.r:.d under the Companies Act, 1956. Tlieyniie eiiujusted"with.the l responsibility of refining andv'iiri:atrketing; of peti*(1>E_cj:t1rr1 pi'odiua'.t§st» through retail outlets -~ run by de;1_l_er:~';V_suieh as.tiie_ petitioners. The dispensing Lllliifsli[l'1{)l;tgll:1ll}Ellll"i{£li1i€(l by !"6$'.p(')n(l€E"t[S are under the SLlpt3E'\iilS'l-{)1} pf Mete':--'g)lttg3g'« 'departiiie.i1t, but are however, ogbiere._ted""'biy_ that-l._/D'e21le17s"'.;1n.d their employees. The Dealeris i'esp<)n;l§i.i§'ieA'footii'nu'i'n.tainii1g the quality of the product. ; ' The i\/Il:1:=k_Aeting_ Discipline Guideiiiies are trained from time Vito_tiinei"hythe oil conipzinies in consultation and with the due ii 21p"p-i_'ovi;i'lii(i.§7_ t':.i;e"i.Mii1isti'y of Petroleum. These Guidelines are frained.i_n'oi'dei' to bring about Lz1iifoi'm_ity in conduct and tli§c«i.pliiie of maintenance of standaifds across dealers of the l':§1'c1l'l<etlI1g oil cmnptmies. The petitioners are bound by the SE-llT1€ by virtue of the Dealership agreement. This is a-tpart from the :3 46 power to take action available including the MS/l~lSl3JL7()ntrc)l Order 2005.
it is contended that the several Sl£1EUl€__Sl'g0V'-t§l"I1lIlgi'l<l1C * import. transport, storage, p1'oduetio[n, :jesir1j.irig en'd--._ble'n_din,gof i petroleum do not deal witl1.=qn_;1lityi"avnid qu:n1't'ity.imaspéictsl <'_)it"; petroleum products marketed in 1'e't:;1il.eby the «. petroleium dealers when the said c()ti11n()tl9J»§es 7.at'e{_';stiore'dp'by the dealers and dispensed to tlie._"ge1ie1'e;i'ii'pu'eli<:.i' provisions of the Pet1'()lett.rn Act.z1nd':'RAuleSi'Woulci not have relevance in the context of p1'eventi"on .0l'i.Eldti'léC1Tg1ill()Il and other nialp'raeiee.s being et)11f:ni~:ittEeti b__y errn1g....t.ieale1's. It is hence that the MS and l-ESD EiC'ont'rol"Qrde:i_was Eratrnecl in terms of power conferred under Seetioii titfiite Essential Coininotlit':es Act, W55. Simil/arly. the l1v::t_sl1'been introduced with the approval of the Ministry of Petr<'ileL1rn. The suit! guidelines provide for the procedure at each i " ~»v:s~t3ge, namely ht1ndliiig_ at retail outlets, sampling procedure and prescribes de.tails of penal action. The above are neee.ssz-try to 3 47 safegtiard the interest of the g€i1€i"di public to be assured of qtutlity products M hence the E1ll€gL1'[l011 as to the sttme being unconstitutionttl is baseless. The guidelines have been in vogue since the yeai" 1982. Dealers across the couritry h2tvitig,;thiide_d by the same . the petitioners are estopped from chalieitgzini A it -- they shine,» at this remote point of time. And hei.:ce,-the cotiiasiettfseeixi_that'1tlie' . petitions be dismissed.
By way ofreply, it is ptiiiitexjbiit that"instifh..=r ttsthe disputes being iiT,'€f€'-E'2'ili,7.l€iiii~til".,ljih€_id4:VElii'{%¥.I'Sillp agreement is incorrect. The disputes i'e'i;3_te to the .'it-:";','Eiil£}.t_ii.i"'t)'l"' the respondents by recourse to the has't1Q...«!5£tt1Cti()n of law nor is 1'efe.i'21ble to the _ d'c;tl'ci:s'ltEpl éligifcc-lllcllt. The petitioners are neither consulted in foi*.{n_iiigVthe."same not is it bilateral in chziraicter. The contention as regai*ds.the dealership agreement providing for arbitration undet' i Ai°bitratio1t and Concilitmon Act is therefore i1':*eie\»-'amt. In ttny i " ~-event, the respondents have not compiied with Sectioit 8 of that Act in seeking i"ei'ere:tce to AE'i)ltl't£)l1. Fttrthet tilt the Lltiillii-i"Sl1lp W41!
-'18 agreements do not contain Arbitration clauses ---- a list been provided in this regard. along with the brief note on conclusion of arguments.
insofar' as the. MDG being xivliiibliy i1ig:oi_isijstei_itiwi'thi'theij statutory provisions and conferring aneixeessive_~_ai*t3itrary 'power on officers of the oil companies,attentioryis'*di?a1W;} to a letter dated l.l.12.2006 f1'()I'llM"'{.il€ fii(.:Hii':1_'1ili.::vfii.._vCit§l1L1'()li6£;iiH()l: Explosives addressed to M/s._ Hindustaii-.Petrolei:ii1 C~t3j;p-oi'ati()n Limited as i'egards'<._' £1r}(3i11£1liiL?'§"..alt},_lll'1e.""NlDG vis--a--vis the provisions of Petrole.umii>Riules,i particularly. as regaards sampling pr()'eeda1je.s ,_t'(illow'ed....:=1.s' per MDG at retail. outlets and the same _ h'ein'g_ViolaIi'x=.ei of condition -1 of the licence issued under the Rules, raising potential risk to the public safety. The eorporation been asked to stop the existing P1-&E:tiC'eK Further i'~t_he-- «Corporation has been advised to approach the Central ' "Govermnent which is empowered to make appropriate Rules in this regard in terms of Section 143' the Petroleum Act, 1934. ii') Attention was also drawn to a letter dated ()2. 12. l99_8 issued by the Controller of Meteorology, Chennai, addressed .to to state that the officers of the oil. companies not being Ve.ittp.o'we_ii'ed'.< under the SWM Act to check dispensing'<pt1nrips,toi""ittceuracyirt i quantity delivered. They tsotilcldo llsoiottly th1ft)ttgh'* Controllers or Inspectors of the Dleptit*ti11.entlof_lVlctero1ogy.
6. In the above ba.el<gtt)1'ind,.it "be noticed that though in all these l't5etfiVtVi('inii§.<la .cll'tallei1g_ellisl made to the validity of the Motor St;i.V_1'i4t_and._lHiighi_4"S_fieted Diesel (Regulation of Supply, Distijbtitigitt ar1<;l__l Pte\re"1ti()i1 of Malpiactice) Order 2005, on .Vill'l(_)LiS_'gl'Qt]llt§S W the same is not urged with any force at the 'heat'-ingléél.t'h.e"eit1phasis was on the challenge to the l\/latketing Diseipliiie Guidelines in force.
V Further, though the &10{i.0!'1S of the respondents are chosen to be question as being arbitrary or in violation of principles of natural justice --»-- the same are not addressed as the question that is w't)1'thy of consideration. in the opinion of this C():.:rE;~--is_ft1iii'j,tj'as to the whether the Marketing Discipline Guideline.si_:"i?sfi;1iined._bf the respondent oil eompanies has 21 basis 'eithe-i'ri.ti litwic).rietirit'i'"tiet;.;it e f It is not in dispute that l982 revised in 1985 2l.l(ell$«2()()5 a'hré4i*Hv3(@'7 are not under is 21 joint initiative of the applicable to all retail Olillfil"tli€2l.l€l':§?-Sf"iitifid consultation with and the Et[Z)[3l"()\ii/tail ('iflltePWr£l1"til€Lln1. Government of lndia. The said Gnidel'i--r3esv for.
P1't')eeitiiiLii"e------t7a " liantlling oi' products at Retail outlets by kt) guidelines for sample collection and testing 3~-- 1' tier sampling system.
C) Handling of Motor Spirit, High-Speed Diesel and Kerosene oil at c()mpany's storage points and duties of oil companies.
3 56 As is plain l'ro1n the above, the officers of the~«~r*eisp.()i_r:il'c§iii.g company have given themselves extensive pow-e1's"".ol'*-punishiiigu the petitioners - while labelling the '::e.lat'it>nshii'p. as it con-it_r21etual 0116.
There is a unilateral."r'elegiationv"'oti power which is obviously vested with authorities t1nr..ler'--.the_ and the Petroleum Act, l934, r'e.sipec:fiiiile_ly, pointed l()tl'tl in letters referred to above, lo.y..;1uit'h.o'rilies_undieef_:tlie' Eitpltisives Act and the SWM Act. Except sple.adii1i-g-thiai.___tl'1e" guidelines have been approved by the Q(i)ve.r'ii1iie11t .airi(litha't the same are made in the best interest of .tl*ie_,consunrer','«there is admittedly no statutory delegation of power L;-noes: wih'ic"h__tl:e"said guiclelines are framed It».--i_s also to be noticed that the said guidelines being 'rel'at:ihle. to the respective dealership aig1'ee1iie1it oi' the petitioners i "also is not tenable as in many cases on hand, the dealership agreernents are executed much prior to N82 and the agreement § refers; to obligations arising under statutory prr~>~viS'it>i_is.'.j'The gtiideiines which are not framed under any i1l_.t{--i1.(i)_:1;'iI'Vyi l_aw ';="ir.e Ltnilatemily imposed by the resp0'r.1deiit~ f cQ1itpé1'i1ie'ei'*-..Qsi»a; the petitioners. The guidelines are _hQt ha1'Ai"1'-116533 irs?5trtictir)i1s..3tt) the dealers but are loaded with pen:-ti..§_;iiir3rjiz_isi<')i1s invoked by the officers of the the basis of reports and £1 there is no procedure prescribed inst1'uctit)ns by way of "Notes;"'. extir"'uc;t;:d i1ie':'e§sjra.b'('>v*e mewivagtte and iIt21ClCL]i12-HG. The breach of _:g:,tiic'te_1~ii1e.s being zidjudicated in terms of the "f\7i<)te.:'s§_'--.rtgttsgve i'€iii€""i'-B-it, the reference to the arbitration clause in tetrriisi Qf».t_heide:i1e1'ship at-1gre--emer:t a seh'lct.mtracti_0n on the part or respofisderat ~ companies.
_ However, if it is a matter of concern the 1'es;i>011dent ciompanies that there are iITciCiI';'.(§i!€1{6 sztfe-gtt;11'dS and lack of appropriate ineasutfes under the existiiig statutory" provisions which prompted the introduction of the guideiines to prevent 5 No order as to costs.
nv/J} &