Tuesday, 12, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

Hareshbhai Nathabhai Patel vs Hindustan Petroleum Corporation ...
2021 Latest Caselaw 10561 Guj

Citation : 2021 Latest Caselaw 10561 Guj
Judgement Date : 4 August, 2021

Gujarat High Court
Hareshbhai Nathabhai Patel vs Hindustan Petroleum Corporation ... on 4 August, 2021
Bench: J.B.Pardiwala, Vaibhavi D. Nanavati
     C/LPA/272/2018                             JUDGMENT DATED: 04/08/2021




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                 R/LETTERS PATENT APPEAL NO. 272 of 2018

              In R/SPECIAL CIVIL APPLICATION NO. 214 of 2013

                                  With
                R/LETTERS PATENT APPEAL NO. 1034 of 2018
                                    In
                SPECIAL CIVIL APPLICATION NO. 214 of 2013

FOR APPROVAL AND SIGNATURE:


HONOURABLE MR. JUSTICE J.B.PARDIWALA

and
HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI

==========================================================

1    Whether Reporters of Local Papers may be allowed
     to see the judgment ?

2    To be referred to the Reporter or not ?

3    Whether their Lordships wish to see the fair copy
     of the judgment ?

4    Whether this case involves a substantial question
     of law as to the interpretation of the Constitution
     of India or any order made thereunder ?

==========================================================
              HARESHBHAI NATHABHAI PATEL
                        Versus
HINDUSTAN PETROLEUM CORPORATION LTD THRO CHIEF REGIONAL
                    MANA & 2 other(s)
==========================================================
Appearance:
MR DHARMESH R PATEL(5592) for the Appellant(s) No. 1
MS MINOO A SHAH(774) for the Respondent(s) No. 1
NOTICE SERVED(4) for the Respondent(s) No. 2,3
==========================================================

    CORAM:HONOURABLE MR. JUSTICE J.B.PARDIWALA
          and
          HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI




                                 Page 1 of 24

                                                      Downloaded on : Fri Sep 10 12:06:38 IST 2021
       C/LPA/272/2018                          JUDGMENT DATED: 04/08/2021



                          Date : 04/08/2021

                      ORAL JUDGMENT

(PER : HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI)

1. Both the captioned appeals are directed against the judgment dated 26.12.2017 passed by learned Single Judge of this Court in the Special Civil Application No.214 of 2013 and other connected writ-applications. The writ-applicant of Special Civil Application No.214 of 2013 has filed Letters Patent Appeal 272 of 2018 and the Letters Patent Appeal No.1034 of 2018 is at the instance of the original respondent - Hindustan Petroleum Corporation Ltd., - (for short 'HPCL').

2. Since the challenge involved in both the appeals is to the self same judgement passed by the learned Single Judge, the appeals are taken up for hearing analogously and are being disposed off by this common order. The parties are referred to as per the array of parties in special civil application no. 214 of 2013.

2.1 The appellant of Letters Patent Appeal No. 272 of 2018- original writ-applicant challenged the decision taken by the HPCL dated 27.12.2012 whereby the authority had called writ- applicant for the re-interview with regard to grant of retail out-let distributorship relating to the location within two kilometers from Sikka Chokdi on S.H.59, Dist.Sabarkantha. The issue involved in the present appeal is with regards to grant of dealership for HPCL retail-outlet and the process undertaken

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

for the same.

2.2 The Special Civil Application No.214 of 2013 was filed by the original writ-applicant seeking the following reliefs :-

"(A) Admit this petition;

(B) Allow this Petition by issuing an appropriate writ, order or direction by quashing and setting aside the decision of Re- interview dated 27 / 12/12 issued by the respondent No.1;

(C) Pending, Admission and till final disposal of the present petition, be pleased to restrain the respondent no. 1 from further proceeding with regard to the decision of Re-interview dated 27/12/12 issued by the respondent no. 1 in the interest of justice;

D) Grant such other and further relief (s) as deemed fit in the interest of the justice."

3. Facts giving rise to these appeals are summarized as under :-

3.1 The respondent No.1 - HPCL issued an advertisement dated 30.6.2010 in the daily newspapers Times of India and Sandesh in the State of Gujarat for appointment of retail outlet dealer at location No.90 within two kilometers from Sikka Chokdi on S.H.59, Dist.Sabarkantha under open category in the Gujarat. The writ-applicant applied for the same as per the said advertisement and was called for interview along with

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

other candidates on 7.10.2010.

3.2 The writ-applicant appeared for the interview. According to the writ-applicant the writ-applicant was the most eligible candidate but his name did not reflect in the select list published on 17.12.2010. According to the writ-applicant, he was at Sr.No.1 or 2 but his name altogether was excluded from the list.

3.3 Being aggrieved by the said select list the writ-applicant preferred a representation to respondent No.1-HPCL which was not considered by the respondent No.1-HPCL and hence Special Civil Application No.10253 of 2011 was preferred by the writ- applicant. It is also relevant to quote the prayers as preferred in the said Special Civil Application which reads thus:-

8(B) Allow this petition by issuing an appropriate writ, order or direction quashing and setting aside the selection list dated 7.12.2010 issued by the respondent No.1 and thereby, be pleased to direct the respondent No.1 to grant the retail outlet dealership within 2 kms. from Sika Chowkdi on SH 59 to the present petitioner.

3.4 In the Special Civil Application No.10253 of 2011 the respondent No.1-HPCL took a stance that the writ-applicant did appear in the select list but in view of the allegations raised by various other candidates and after investigation it was decided to cancel the select list which was impugned in Special Civil Application No.10253 of 2011. In view of the said stance of the respondent No.1-HPCL the writ-application came

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

to be disposed off vide order dated 20.6.2012 by making the following observations :-

"3. From the record of the petition and from the submission made by the learned advocate for the petitioner and respondent company it has emerged that the respondent company has treated the merit list as "cancelled".

Therefore, the relief prayed for by the petitioner in paragraph No.8(B) to the effect that the selection list dated 7.12.2010 issued by the respondent No.1 be set aside, would not survive / stands satisfied in view of the decision taken by the respondent company.

4. It is not in dispute that the petitioner's name was in the list prepared by the respondent. The said list i.e. the list containing petitioner's name is treated as cancelled. Actually in the petition the petitioner himself claimed that the list may be cancelled. Thus, when the list is treated as "cancelled" by the respondent company, the petitioner cannot claim that dealership of retail outlet may be granted to him. When the list is cancelled then the names of all persons / candidates who were in the list would stand cancelled and that therefore in view of the first part of relief prayed for by the petitioner himself, the second part of the relief would not survive. In view of the fact that the respondent company has treated the list as "cancelled", the relief prayed for in petition would not survive. The petition, therefore, is disposed of accordingly.

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

5. At this stage, it is necessary to mention that in view of the aforesaid decision of the respondent company, one the candidates whose names was included in the merit list has preferred petition being Special Civil Application No.793 of 2012 and challenged the decision / action of the respondent company. The said petition is pending. It is also necessary to mention that present petitioner is one of the respondents in the said petition therefore so far as present petitioner's grievance with regard to other candidates would be considered in the said petition and therefore also present petition does not survive and the same is disposed of accordingly."

3.5 It is also required to mentioned about the Special Civil Application No.793 of 2012 was filed by Mr. Virendrakumar Prajapati challenging the decision of cancellation of select list and constitution of new select panel. In the said writ- application the interim order came to be passed on 21.09.2012 which reads thus:-

"11. So far as the interim relief is concerned, the Court is not inclined to restrain the respondent corporation from conducting fresh interviews at this stage, more particularly because said Rule 19 on which the petitioner has placed reliance contemplates that fresh interviews of the same candidates can be conducted. Even according to the communication dated 8.9.2011, the respondent corporation has informed the petitioner that the respondent corporation is

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

going to conduct fresh interview of only those candidates who was enlisted on earlier occasion. Therefore, the Court is not inclined to stay the process of fresh interviews of the very same candidates as contemplated by the respondent corporation under communication dated 8.9.2011. It is, however, clarified, in view of the stipulation made by the learned advocate for the petitioner, that the change made in the marks as per the details mentioned in paragraph No.16 of the affidavit in SCA No.10253/2011, shall not be taken into account by the committee when fresh interview of the same candidates are conducted and appropriate decision will be taken independently and only on the basis of the interviews which may be held by the committee in pursuance of the communication dated 8.9.2011 and the marks which the candidates may secure. It is further clarified that the final decision and subsequent actions by the respondent corporation of allotting outlet will be subject to final decision of the present petition. If any candidate other than the petitioner is selected after the fresh interviews, then in the letter of intent / letter of allotment, the respondent corporation shall subsequently clarify that the said decision will be subject to the final order in the present petition."

3.6 The interim order dated 21.09.2012 passed in Special Civil Application No.793 of 2012 was challenged by Mr Virenddrakumar Prajapati by way of filing Letters Patent Appeal No.1333 of 2012 which came to be dismissed summarily vide order dated 22.10.2012.

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

3.7 The present writ-applicant of Special Civil Application No.214 of 2013 - Hareshkumar Patel then came before this Court filing the writ-application challenging the decision of the respondent authorities to call the parties for re-interview vide communication dated 27.12.2012.

3.8 The writ-applicant being aggrieved by the said decision of respondent no.1 of conducting re-interview the writ-applicant challenged the said decision being contrary to the guidelines of the company as well as contrary in nature and therefore the said decision was required to be quashed and set aside.

3.9 It is the case of the writ-applicant that the said decision of respondent HPCL mainly to support a favourable person and select by way of re-interviews. It was further submitted that there was a strong apprehension that respondent no.1 tried to correct the mistakes of prior interview and award of marks during prior interview and therefore respondent no was making effort to award more marks to respondent no.2.

3.10 The writ-applicant further alleged favouritism it was mainly submitted that the decision making process of respondent.1 was not in consonance with guidelines of retail outlet dealership.

3.11 The learned single judge vide common judgement and order dated 26.12.2017 disposed off the Special Civil

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

Application nos. 793/2012, 214/ 2013 and 7521/2014 by considering the rival contentions of the parties and observed as this in paragraphs 18 to 20:-

"18. As the impugned selection is ordered to be quashed and set aside, the entire exercise or the procedure of selection is ordered to be conducted afresh as per the guidelines qua the petitioners who are the original applicants. The procedure for selection may be conducted after providing an opportunity to all the petitioners including the petitioner in SCA 793/2012 and also keeping in mind the interim orders, where, in SCA 7451 of 2014, it has been clarified by the interim order that FDR may not be furnished and the petitioner may disclose his financial position while appearing for the purpose of fresh interview. At the same time, it will be open for the Respondent Corporation to take the decision as per their norms or the policy where the person is having a dealership of another Company like the Petitioner in SCA 214/2013. Therefore, it will be open for the Respondent Corporation to consider this aspect of eligibility for the purpose of another dealership when he is already having one dealership. The entire exercise shall be completed within a period of six weeks.

19. The present group of petitions accordingly stands allowed. The impugned communication/order or the selection procedure shall stand quashed and set aside subject to the direction as stated herein above.

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

20. The present petitions accordingly stands allowed partly to the aforesaid extent. Rule is made absolute."

3.12 It is against this decision as rendered by the Learned Single Judge in Special Civil Application No.213 of 2014 the present appeals are preferred. The grievance as principally raised in the LPA no. 272 of 2018 preferred by the original writ-applicant is on the ground that calling for re-interview is merely an eyewash to overcome the illegalities committed by respondent HPCL, whereas the LPA no. 1034 of 2018 preferred by the original respondent HPCL has raised the grievance and is aggrieved by the order passed by the learned Single Judge directing the respondent No.1-HPCL to follow due procedure and conduct re-interview which according to the respondent No.1-HPCL is wholly unjustified and erroneous in view of the prevailing policy of the respondent No.1- HPCL.

4. We have heard Mr. Dharmesh R. Patel, the learned counsel appearing for the writ-applicant and Ms. Minoo A. Shah, the learned counsel appearing for the respondent - HPCL.

Submissions on behalf of the appellant (original writ- applicant) of LPA No.272 of 2018 :-

5. Mr. Dharmesh R. Patel, the learned counsel appearing for the appellant submitted that the appellant was more meritorious and figured at Sr. No.1 in the merit-list and that

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

he was awarded the highest marks by the earlier select panel.

5.1 He submitted that the process of re-interview directed by the learned Single Judge was merely an eyewash. He further submitted that the entire merit-list was scrapped by the respondent - HPCL because of the fact that one other participant challenged the decision of change of marks in select list and cancelling the merit-list by filing the Special Civil Application No.793 of 2012. Pending the said writ-application the respondent - HPCL decided to conduct re-interview which gave rise to the Special Civil Application No.214 of 2013 whereby the learned Single Judge directed the respondent No.1-HPCL to conduct re-interview by following due procedure for selection after providing an opportunity to all the writ- applicants including the writ-applicant in the Special Civil Application No.793 of 2012 and keeping in mind the interim orders, where in the Special Civil Application No.7451 of 2014, it was clarified by the interim order that the FDR may not be furnished and the writ-applicant may disclose his financial position while appearing for the purpose of fresh interview. At the same time, it was kept open for the respondent- Corporation to take decision as per their norms or policy where the person is having dealership of another Company like the writ-applicant of the Special Civil Application No.214 of 2013. It was kept open for the respondent-Corporation to consider the aspect of eligibility for the purpose of another dealership when he was already having one dealership. The

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

entire exercise was directed to be completed within a period of six weeks. He has vehemently submitted that though the learned single judge had partly allowed the writ-application and directed the respondent No.1-HPCL to conduct re-interview the said exercise was against the guidelines and prevailing policy of the HPCL.

5.2 He submitted that the said guidelines provide for selection of retail outlet dealership produced at Annexure-A to the writ-application. He relied on Rules 12, 15, 19 and guidelines of 2010.

Rule 12 provides for;

"Preference for offering suitable land."

Rule 15 provides for;

"In case for any reason the interview carried out for a specific location has been nullified and re-interview has to be held then all the candidates who have appeared for the original interview only will be called for the re-interview."

Rule 19 provides for;

"grievance / complaint redressal system."

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

Guidelines for 2010

5.2 Mr. Patel submitted that though the appellant was more meritorious, the respondent No.2 was arbitrarily awarded more marks by the respondent-HPCL. The appellant is aggrieved by the decision making the process of the respondent - Corporation. Lastly he submitted that the decision of re- interview by the respondent No.1-HPCL which has been in fact conducted was erroneously directed by the learned Single Judge to be re-conducted by way of re-interview and, therefore, the order passed by the learned Single Judge was required to be quashed.

Submissions on behalf of the respondent - HPCL :-

6. Per contra, Ms. Minoo A. Shah, learned counsel appearing for the respondent HPCL submitted that the learned Single Judge committed an error in partly allowing the Special Civil Application. She submitted that the opponent No.1 i.e. original writ-applicant having appeared in the selection process was bound by the subject, selection guidelines and could not have questioned the disqualification which was the decision taken by the appellant in accordance with the guidelines of March, 2010. Clause 19(b) referred to in the impugned order of March, 2010 is not a part of March, 2010 Guideline and actually pertains to the guidelines of September, 2011.

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

6.1 She submitted that since the advertisement for the location under dispute was issued on 30.6.2010 and the interview was conducted on 7.12.2010, the case of the original writ-applicant was required to be considered as per the March, 2010 guidelines. She therefore submitted that the writ- applicant in accordance with the guideline of March, 2010 was not eligible for the second dealership.

6.2 She submitted that the writ-applicant was already holding and operating the dealership of another public sector oil company and, therefore, the writ-applicant was disqualified under the multiple dealership norms. She substantiated the said submission by stating that the writ-applicant was a signatory to a dealership of another oil company and could not now be considered for selection of subject location in view of disqualification applicable as per Clause (6) of March, 2010 guidelines. Clause (6) of the Guidelines of March, 2010 reads thus;

"6. Multiple dealership norms (relationship clause) : For Individuals including Partnerships "Persons desirous of applying should not he having either letter of Intent (LOI) or Dealership/Distributorship of any Oil Company in his/her own name or in the name family members in his/her family unit."

6.3 To substantiate the said submission she referred to the

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

guidelines of selection which are forming part of the record of Special Civil Application at Annexure-I. She relied on clause (6) of the March, 2010 guidelines and further submitted that it was incorrect to raise a grievance on the applicability of guidelines of September 2011 which is applicable to MS/HSD diesel advertisement from September 2011 whereas the guidelines applicable to the case of writ-applicant are of March 2010 for advertisement issued from march 2010 and therefore there is no breach of any procedures or guidelines. She further submitted that there is no violation of fundamental right of the writ-applicant in any manner.

6.4 She further submitted that there is no procedural impropriety in complying clause 19 and other clauses in respect of investigation of the complaints as per the guidelines of march 2010. She submitted that the co-ordinate bench had considered the clause 19 and other clauses applicable to the case of writ-applicant and submitted there was no scope to restrain the respondent no.1 from conducting the re-interview. It was further submitted that the writ-applicant did not have any inherent right to claim the dealership and dictate the selection process which is otherwise required to be conducted in accordance with the guidelines of the company.

6.5 She submitted that the learned Single Judge ought to have dismissed the writ-application filed by the original writ- applicant on the ground that the original writ-applicant had

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

violated the multiple dealership norms as stated in the guidelines and, therefore, the decision of appellant - HPCL disqualifying the opponent No.1 or the original writ-applicant in the selection process was just and proper. She further submitted that the direction of the learned Single Judge for allowing the opponent No.1 to participate in re-interview amounted relaxation of guidelines and such special treatment to the original writ-applicant would amount breach of guidelines of the appellant - HPCL. She submitted that the appellant had acted in accordance with the law and guidelines of March, 2010.

6.6 In view of the above submissions, she submitted that the order passed by the learned Single Judge was erroneous and, therefore, the same is required to be quashed and set aside. Since the Learned Single judge has committed an error in overlooking the policy of 2010 which governed the case of the writ-applicant.

7. We have heard Mr. Dharmesh R. Patel, the learned counsel appearing for the appellant and Ms. Minoo A. Shah, the learned counsel appearing for the respondent No.1-HPCL.

Analysis :-

8. Before adverting to rival contentions of the parties on facts of the case, in our view it is apposite to narrate the legal position on such claims in case of contractual disputes and the

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

tenability of interference in the same under writ jurisdiction.

8.1 The law may not require much narration on the question as to permissibility of invoking the writ jurisdiction in such contractual matters as the same is well settled by now. The interference in the process needs to be minimal and when the same is governed by public interest and after following due process of law, the interference is permissible to a very limited extent.

The Honorable Apex Court in the case of Raunaq International Ltd vs IVR Construction LTd reported in 1999 (1) SCC 492 was pleased to observe as under :-

"9. The award of a contract, whether it is by a private party or by a public body or the State, is essentially a commercial transaction. In arriving at a commercial decision, considerations which are of paramount importance are commercial considerations. These would be:

(1) the price at which the other side is willing to do the work;

(2) whether the goods or services offered are of the requisite specifications;

(3) whether the person tendering has the ability to deliver the goods or services as per specifications. When large works

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

contracts involving engagement of substantial manpower or requiring specific skills are to be offered, the financial ability of the tenderer to fulfil the requirements of the job is also important;

(4) the ability of the tenderer to deliver goods or services or to do the work of the requisite standard and quality;

(5) past experience of the tenderer and whether he has successfully completed similar work earlier;

(6) time which will be taken to deliver the goods or services; and often.

(7) the ability of the tenderer to take follow-up action, rectify defects or to give post-contract services.

Even when the State or a public body enters into a commercial transaction, considerations which would prevail in its decision to award the contract to a given party would be the same. However, because the State or a public body or an agency of the State enters into such a contract, there could be, in a given case, an element of public law or public interest involved even in such a commercial transaction.

10. What are these elements of public interest? (1) Public money would be expended for the purposes of the contract. (2) The goods or services which are being commissioned

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

could be for a public purpose, such as, construction of roads, public buildings, power plants or other public utilities. (3) The public would be directly interested in the timely fulfilment of the contract so that the services become available to the public expeditiously. (4) The public would also be interested in the quality of the work undertaken or goods supplied by the tenderer. Poor quality of work or goods can lead to tremendous public hardship and substantial financial outlay either in correcting mistakes or in rectifying defects or even at times in redoing the entire work--thus involving larger outlays of public money and delaying the availability of services, facilities or goods, e.g., a delay in commissioning a power project, as in the present case, could lead to power shortages, retardation of industrial development, hardship to the general public and substantial cost escalation.

11. When a writ petition is filed in the High Court challenging the award of a contract by a public authority or the State, the court must be satisfied that there is some element of public interest involved in entertaining such a petition. If, for example, the dispute is purely between two tenderers, the court must be very careful to see if there is any element of public interest involved in the litigation. A mere difference in the prices offered by the two tenderers may or may not be decisive in deciding whether any public interest is involved in intervening in such a commercial transaction. It is important to bear in mind that by court

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

intervention, the proposed project may be considerably delayed thus escalating the cost far more than any saving which the court would ultimately effect in public money by deciding the dispute in favour of one tenderer or the other tenderer. Therefore, unless the court is satisfied that there is a substantial amount of public interest, or the transaction is entered into mala fide, the court should not intervene under Article 226 in disputes between two rival tenderers. "

The Honorable Apex Court in the case of Air India Ltd vs Cochin International Airport reported in 2000 (2) SCC 617 was pleased to further observe as under :-

"The award of a contract, whether it is by a private party or by a public body or the State, is essentially a commercial transaction. In arriving at a commercial decision considerations which are of paramount are commercial considerations. The State can choose its own method to arrive at a decision. It can fix its own terms of invitation to tender and that is not open to judicial scrutiny. It can enter into negotiations before finally deciding to accept one of the offers made to it. Price need not always be the sole criterion for awarding a contract. It is free to grant any relaxation, for bona fide reasons, if the tender conditions permit such a relaxation. It may not accept the offer even though it happens to be the highest or the lowest. But the State, its corporations, instrumentalities and agencies are bound to adhere to the norms, standards and procedures laid down by them and cannot depart from them arbitrarily. Though that

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

decision is not amendable to judicial review, the Court can examine the decision making process and interfere if it is found vitiated by mala fides, unreasonableness and arbitrariness. The State, its corporations, instrumentalities and agencies have the public duty to be fair to all concerned. "

The Apex Court further observed in Air India (Supra)

"Even when some defect is found in the decision making process the Court must exercise its discretionary power under Article 226 with great caution and should exercise it only in furtherance of public interest and not merely on the making out of a legal point. The Court should always keep the larger public interest in mind in order to decide whether its intervention is called for or not. Only when it comes to a conclusion that overwhelming public interest requires interference, the Court should intervene"

The legal position has developed more towards the restraint that needs to be adopted by the Court while exercising powers under writ jurisdiction. The reliance can be placed on the decisions rendered by the Honorable Apex Court in the cases of Master Marine Services (P) Ltd. v. Metcalfe and Hodgkinson (P) Ltd. and Anr. 2005 (6) SCC 138; Tejas Constructions and Infrastructure Private Limited v. Municipal Council, Sendhwa and Anr. 2012 (6) SCC 464 and several other pronouncements. Hence in view of the said pronouncements we now proceed to deal with the facts on hand.

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

8.2 At the outset we may say that we are in complete agreement with the submission as canvassed by Ms. Minoo Shah on the aspect as to disqualification of the original writ- applicant. The learned counsel for the writ applicant is not in a position to dispute the same and nor is there any effort made to show that the said writ-applicant is not covered by the disqualification clause. Once the authority comes to a conclusion with regards to disqualification of a participant on the ground of prescribed disqualification under the guidelines for award of work and the same is not disputed on facts, then it is not open for this court to modify the suitability to accommodate such participant in the process. Such position leads to the sole conclusion as to disentitlement of any relief to the writ-applicant.

8.3 We are of the view that the original writ-applicant could not have been considered under the multiple dealership norms. Further the original writ-applicant appears to have misguided the Court by not disclosing the fact that he was already holding a letter of intent of another public undertaking viz. Bharat Petroleum and already operating the retail out-let in the name and style of Niyati Petroleum Service at Sikka crossing, Taluka : Dhansura, Dist. Sabarkantha. The original writ- applicant was holding the retail out-let since 2011-12. The action of the appellant - HPCL disqualifying the original writ- applicant (opponent No.1) from appearing in the re-interview

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

on 23.5.2014 was in accordance with the guidelines and the original writ-applicant being ineligible was not required to be called for re-interview for fresh selection process.

8.4 When the reliance is placed on Clause 6 of Multiple dealership clause, the same clearly disentitles the writ- applicant to hold second dealership.

8.5 Clearly the case of the writ-applicant falls for consideration under the guidelines of HPCL of March, 2010. Since the respondent No.1-HPCL issued the advertisement for retail dealership on 30.6.2010, the writ-applicant applied for the same and appeared for interview on 7.10.2010. The merit- list which was the subject matter of challenge was also published on 17.12.2010 and Clause (6) of March, 2010 guidelines disqualifies the writ-applicant since the writ- applicant is holding another retail dealership the Clause (6) of the multiple dealership disqualifies the writ-applicant for allotment of the retail outlet for respondent No.1-HPCL. In view of the same, the decision of disqualification of the original writ-applicant cannot be faulted for the process in question. The guidelines are clear and there is no scope of any interference by this Court on the decision of disqualification.

8.6 We would also like to add that once the tendering/employing authority follows the procedure and takes a decision then the interference under the writ jurisdiction can

C/LPA/272/2018 JUDGMENT DATED: 04/08/2021

be minimal and it may not be open for this Court in writ jurisdiction to strike a balance by passing directions which are against the guidelines governing the tender process. Once a decision has been arrived at taking into consideration all the relevant factors and also the fact that the decision making process does not suffer from any patent illegality this court may refrain from entertaining such appeal.

9. In view of above observations and discussion the order passed by the learned Single Judge to the extent of directing the appellant - HPCL to call the original writ-applicant (opponent No.1) for re-interview is quashed and set aside.

10. In the result, the Letters Patent Appeal No.272 of 2018 filed by the original writ-applicant fails. The Letters Patent Appeal No.1034 of 2018 filed by the HPCL is allowed. The judgement dated 27.12.2017 passed by the learned Single Judge is set aside to the aforesaid extent.

(J. B. PARDIWALA, J)

(VAIBHAVI D. NANAVATI,J) K.K. SAIYED

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IJJ

 

LatestLaws Partner Event : Smt. Nirmala Devi Bam Memorial International Moot Court Competition

 
 
Latestlaws Newsletter