Devi Gas Service & Ors vs Union Of India & Ors
2025 Latest Caselaw 4267 Jhar

Jharkhand High Court

Devi Gas Service & Ors vs Union Of India & Ors on 25 June, 2025

Author: Gautam Kumar Choudhary

Bench: Gautam Kumar Choudhary

                 IN THE HIGH COURT OF JHARKHAND AT RANCHI
                           W.P.(C) No.2265 of 2025

         Devi Gas Service & Ors.                           .....   Petitioners
                                     Versus
         Union of India & Ors.                             ....      Respondents

   CORAM:        HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY

         For the Petitioners         :       Mr. Rupesh Singh, Advocate
                                             Mr. Sudhansu Singh, Advocate
          For the Respondents        :       Mr. Anil Kumar, ASGI
                                             Mr. Rahul Kr. Gupta, Advocate
                                             Mr. Rahul Lamba, Advocate
                                        -----

4/25.06.2025 Petitioners are agencies engaged by Indian Oil Corporation and Hindustan Petroleum Respondent Nos., 2,3, 4, 5, 6, 7 for distributorship of LPG gas, to the consumers.

2. Petitioners are aggrieved by the "policy on Customer Transfer - Market Restructuring" dated 21.02.2025 under which the consumers enrolled with these petitioners' agencies are being transferred to non-performing LPG distributors agencies, which are unviable.

3. Heard the learned Counsel appearing on behalf of the petitioners in IA No. 7680 of 2025 which has been filed for interim order to stay the aforesaid policy under challenge, by which the consumers are being transferred from their dealership.

4. It is submitted by the learned counsel appearing on behalf of the petitioners that this very policy came for judicial scrutiny before the Division Bench of the Hon'ble Bombay High Court and was stayed by the decision rendered in 2018 SCC Online Bombay 13882.

5. The main contention of the petitioners is that they are being penalized for their performance by which they were not able to solicit fairly good number of consumers by their excellent services rendered to them. It was for this reason; the operation of this policy was stayed by the Bombay High Court in 2018 SCC OnLine Bom 13882. It is contended that this will apply in the present case as well in view of the ratio laid down in by the Apex Court in (2004) 6 SCC 254, wherein in para 22, it has been held that an order passed questioning the constitutionality of Parliamentary Act, will have effect throughout the territory of India subject to applicability of the Act.

6. The learned counsel on behalf of the respondent company submits that in the Division Bench of the High Court of Kerala in WA No. 1785 of

2019 has upheld the policy whereby the consumers were transferred from one agency to another.

7. It has further submitted that the beneficiaries LPG agencies having not been impleaded, thus there is violation of principles of natural justice for passing an order affecting their interest without hearing is not viable.

8. Having considered the submissions advanced on behalf of both sides, as well the judgment of the Division Bench of the Bombay High Court, under the impugned policy the customers of the petitioners could not have been transferred without hearing the Petitioners, and therefore the interlocutory application for stay to the policy is allowed.

9. Petitioners are directed to implead the gas agencies where the gas connection of the Petitioners customers has been transferred, and to serve notice on them.

10. In the meantime, the operation of the policies stayed.

11. Let this case to be listed on 29th July 2025.

11. In the meantime, the respondents to file counter affidavit.

(Gautam Kumar Choudhary, J.) R.Kumar