Madras High Court
M/S.C.S.Jayaraman & Co vs M/S.Bharat Petroleum Corporation Ltd on 30 April, 2014
Author: C.S.Karnan
Bench: C.S.Karnan
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 30/ 04 /2014
CORAM
THE HONOURABLE MR.JUSTICE C.S.KARNAN
W.P.No.17860 of 2004 &
W.P.M.P.No.21236 of 2004
M/s.C.S.Jayaraman & Co.,
Rep. by its Managing Partner,
Mr.M.Fazlur Rehman,
93-A, Cutchery Street, Sathy Road,
Gobichettipalayam Post,
Erode District. ... Petitioner
Vs.
1.M/s.Bharat Petroleum Corporation Ltd.,
Rep. by its General Manager,
1, Ranganathans Garden, Off 11th Main Road,
Anna Nagar, Post Box No.1212 & 1213,
Chennai - 600 040.
2.Territory Manager, (Retail Sales),
M/s.Bharat Petroleum Corporation Limited,
Irugur TCP Installation,
Ravathur Post, Via Irugur,
Coimbatore - 641 103.
3.M/s.Hindustan Petroleum Corporation Limited,
Rep. by its General Manager,
IV Floor, Thalamuthu Natarajan Building,
Gandhi Irwin Road, Egmore, Chennai.
4.The Chief Regional Manager,
M/s.Hindustan Petroleum Corporation Limited,
III Floor, A.P.Aracade (Singapore Plaza),
333, Cross Cut Road, Gandhipuram,
Coimbatore - 641 012.
5.IBP Co Limited,
By its Senior Divisional Manager,
10, Mayor V.R.Ramanathan Road,
Chetpet, Chennai - 600 031.
6.National Highways Authority of India,
(Ministry of Road Transport & Highways),
G 5 & 6 Sector, 10,
Diwarka, New Delhi 110 045. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India for a Writ of Mandamus, or any other appropriate Writ or order or direction in the nature of writ forbearing the respondents from starting the outlets or issuing dealership to any person at Gobichettipalayam by violating the rules and regulations framed by the Government of India such as failing to identify the location after preparation of feasibility study, Volume Distance Norms between the outlets and also NHAI, Circular dated 04.11.2003.
For Petitioner : Mr.M.Muthappan
For Respondents : Mr.K.Ethiraj for R-1 and R-2
R-3 and R-6 (served)
Mr.K.Ravi Ananthapadmanabhan for R-4
Mr.R.Ravi for R-5
- - -
O R D E R
The petitioner has filed the above writ petition, seeking a writ of mandamus or any other appropriate writ or order or direction in the nature of writ forbearing the respondent]s from starting the outlets or issuing dealership to any person at Gobichettipalayam.
2. The short facts of the case are as follows:-
The petitioner submits that he is the Managing Partner of M/s.C.S.Jayaraman & Co., Indian Oil Petrol Pump, Gobichettipalayam which is situated on 93-A, Cutchery Road, Erode to Sathy Main Road, Gobichettipalayam and that the pump was established on 10.05.1977, to cater to the fuel needs of the public in and around Gobichettipalayam. It was submitted that the Indian Oil Corporation Limited, classified his outlet as "B" Site. The petitioner further submits that he has been carrying on the business with valid necessary licences such as explosive department licence, storage licence, and dealership agreement with Indian Oil Corporation Limited. It was submitted that as per the pre-conditions imposed in the dealership agreement, the dealer was to undertake to further the sales of the products supplied by the Corporation and to uplift and pay for the minimum quantity of the products supplied by the Corporation per year as specified in the respective agreement and that the Corporation shall have the absolute right to revise the sale targets from time to time. As per the agreement, it was specifically agreed that in the event of the dealer not achieving the minimum turnover prescribed in the agreement at any time during two consecutive years during the currency of the agreement, the Corporation shall be entitled, not withstanding any acquiescence or waiver of this condition and not withstanding any other provisions herein contained, to terminate the agreement by giving three months notice to the dealers.
3. The petitioner further submits that he had invested a huge amount for his retail outlet such as purchase of lands, construction of building, development of lands and other equipment i.e., Generator and Air-compressor etc., and that the average sale in the outlet is 71 KL and that the sale has been reducing considerably from the year 1999-2000 as there was no growth. It was submitted that the petitioner had introduced attractive schemes for customers to achieve the targets fixed by Indian Oil Corporation Ltd.
4. The petitioner submits that new outlets were started by Indian Oil Corporation Limited in January 2004 under 'A' Site category at Modachur Road, Gobichettipalayam and by HPCL in Kunnathur on March 2004, which is 20 kilometer from their outlet. HPCL had also opened another retail outlet at Nambiyur on May 2004, which is 18 km from their outlet. In addition to this, BPCL had also started a retail outlet at Cheyur on March 2004, which is situated at Gobi to Coimbatore route and all these new outlets had affected the business of the petitioner.
5. It was submitted that at this stage, the respondent herein is planning to set up a new 4 outlet within the limits of Gobichettipalayam, within 3 km radius from the outlet of the petitioner which is violative of the distance norms. It was submitted that HPCl appointed a dealer, who will start his retail outlet at Sathy Road, Gobichettiplayam, which is 50 meters from the retail outlet of the petitioner. It was submitted that the respondent had not followed the above guidelines for the retail outlet which was recently started in Cheyur, Kunnathur and Nambiyur and had violated the guidelines on 'System Improvement of Installation of Petrol, HSD retail outlets as well as access to private properties along national highways" enacted by the Ministry through its Circular No.RW/NH-33023/19/99-DO-III, dated 17.10.2003. It was submitted that Government Oil Companies, without assessing the economic factors, viz., (1) Total sale potential in the area (2) present sale and profitability of existing dealer (3) sale and profitability of the proposed and existing dealer after setting up the outlet (4) growth rate factors affecting the business in future such as alternate Fuel and Technology, pollution environment, are opening up new retail outlets. It was submitted that the Government Oil Companies are spending crores of rupees for setting up new retail outlets when the existing retail outlets such as the petitioner's firm is being run at only 12.5% of the installed capacity of the equipment such as electronic dispensing pump and storage of fuel.
6. The petitioner further submits that the respondents 2 to 5, with a view to increase their sales, advertised in 'The Hindu" newspaper and proposed to appoint new dealers in Gobichettipalayam. Hence, the petitioner has preferred the present writ petition.
7. The learned counsel for the writ petitioner, viz, M.Muthappan had submitted that the respondent oil companies, without taking any measures to protect the interest of the existing dealers are planning to float new outlets by appointing a new dealer. It was contended that if the oil companies maintain feasibility for identifying location and also take into account the volume and distance norms between the outlets, the existing dealers shall not be affected. It was contended that the action of the respondents to appoint new dealers is without any purpose as the petroleum business had already reached a saturation point. It was contended that if the respondent is allowed to appoint a new dealer, at Gobichettipalaym, the interest of the petitioner would be prejudiced and the petitioner would be put into hardship. Hence, the learned counsel has prayed for grant of an order of interim injunction restraining the respondents from appointing new dealers or starting a retail outlet in Gobi.
8. The very competent counsel, Mr.K.Ethiraj appearing for the first and second respondents submits that for appointing new dealers for opening new outlets for selling the petrol on retail basis, the petitioner's fundamental and personal rights would not be affected. Further, the respondents, only after survey of the area and flow of the vehicles have advertised for suitable dealers for opening retail outlet.
9. The highly competent counsel Mr.K.Ravi Ananthapadmanabhan appearing for the fourth respondent submits that only after observing all the formalities, the advertisement has been given. Further, the terms and conditions made in earlier agreement between the petitioner and the respondent will not be violated.
10. The very competent counsel, Mr.R.Ravi appearing for the fifth respondent submits that if a new dealer is appointed, the petitioner's right will not be affected in any manner.
11. On considering the facts and circumstances of the case and arguments advanced by the learned counsels on all sides and on perusing the affidavit of the petitioner and typed set of papers, this Court does not find any force in the contentions raised in the writ petition to allow it. This Court is of the further view that as per the policy of the Government, the respondent has to provide new retail outlets to increase revenue and to cater to the demands of the public. As such, this Court holds that the petitioner's rights has not been in any way affected and hence, the writ petition is dismissed. Consequently, connected miscellaneous petition is closed. Accordingly ordered.
30 / 04 / 2014
Index : Yes.
Internet : Yes.
r n s
To
1.M/s.Bharat Petroleum Corporation Ltd.,
Rep. by its General Manager,
1, Ranganathans Garden, Off 11th Main Road,
Anna Nagar, Post Box No.1212 & 1213,
Chennai - 600 040.
2.Territory Manager, (Retail Sales),
M/s.Bharat Petroleum Corporation Limited,
Irugur TCP Installation,
Ravathur Post, Via Irugur,
Coimbatore - 641 103.
3.M/s.Hindustan Petroleum Corporation Limited,
Rep. by its General Manager,
IV Floor, Thalamuthu Natarajan Building,
Gandhi Irwin Road, Egmore, Chennai.
4.The Chief Regional Manager,
M/s.Hindustan Petroleum Corporation Limited,
III Floor, A.P.Aracade (Singapore Plaza),
333, Cross Cut Road, Gandhipuram,
Coimbatore - 641 012.
5.IBP Co Limited,
By its Senior Divisional Manager,
10, Mayor V.R.Ramanathan Road,
Chetpet, Chennai - 600 031.
6.National Highways Authority of India,
(Ministry of Road Transport & Highways),
G 5 & 6 Sector, 10,
Diwarka, New Delhi 110 045.
C.S.KARNAN, J.
r n s
Pre Delivery Order made in
W.P.No.17860 of 2004 &
W.P.M.P.No.21236 of 2004
30 /04 /2014