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M/S.Gothandapani Agencies(Ad ... vs The Senior Regional Manager
2023 Latest Caselaw 12487 Mad

Citation : 2023 Latest Caselaw 12487 Mad
Judgement Date : 14 September, 2023

Madras High Court
M/S.Gothandapani Agencies(Ad ... vs The Senior Regional Manager on 14 September, 2023
    2023/MHC/4304



                                                         1

                                  BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                                DATED: 14.09.2023

                                                       CORAM:

                             THE HONOURABLE MR.JUSTICE S.S.SUNDAR
                                            AND
                      THE HONOURABLE MR.JUSTICE D.BHARATHA CHAKRVARTHY

                                W.A(MD)NOs.1546 to 1556 OF 2023
                                               and
                                          C.M.P(MD)Nos.
                      12079,12084,12096,12069,12072,12076,12065,12066,1207
                                    8,12081 and 12082 of 2023


                     M/s.Gothandapani Agencies(Ad hoc),
                     Dealer, Hindustan Petroleum Corporation Limited,
                     Trichy Region,Operated by Land Owner Mr.V.Prakash,
                     represented by Power Agent Mrs.P.Mahalakshmi,
                     No.367/1, Aladukkumulai Village,
                     Pattukkottai-Thanjavur Main Road,
                     Pattukkottai,
                     Thanjavur.                         :Appellant/Writ Petitioner
                                                         in W.A(MD)No.1546 of 2023

                                                .vs.

                     The Senior Regional Manager,
                     Hindustan Petroleum Corporation Limited,
                     Trichy Retail Regional Office,
                     No.90, II Floor, MSDR Enclave,
                     Bharathidasan Road,
                     Cantonment,
                     Trichy – 629 001.                 : Respondent/Respondent in
                                                         W.A(MD)No.1546 of 2023


                     PRAYER in W.A(MD)No.1546 of 2023 Writ Appeal filed under
                     Clause 15 of the Letters Patent praying this Court to set aside the
                     order passed by this Court in W.P(MD)No.15412of 2014, dated
                     06.07.2023.
https://www.mhc.tn.gov.in/judis
                                                             2

                                       For Appellant             :Mr.Issac Mohanlal
                                       in all W.As’               for M/s.Issac Chambers

                                       For Respondent            :Mr.M.Sridhar

                                                    COMMON JUDGMENT
                                                    ****************

[Judgment of the Court was made by S.S.SUNDAR,J.]

The Petitioners in a batch of Writ Petitions in W.P(MD)Nos.

15412 to 15416 of 2014 etc batch are before this Court challenging

the order of the learned Single Judge dismissing the Writ Petitions

filed by them for issuance of a Writ of Certiorarified Mandamus to

quash the impugned orders and forbear the respondents therein

from in any manner interfering with the operation of the retail

outlets by the respective dealers in the place where they were

permitted earlier on temporary basis.

2.The brief facts that are necessary for the disposal of the

Writ Appeals are as follows:

The change of policy of the Government of India is to regulate

the retail sales of petroleum and petroleum products under the

Essential Commodities Act, 1955, bypermitting the Oil Companies to

deal with the same. There were further periodical developments,

which ultimately lead to the creation of concept of Company Owned https://www.mhc.tn.gov.in/judis

Company Operated (COCO)Outlets so as to enable the National Oil

Companies to run and operate their own outlets, which were known

as ‘’Modern Retail Outlets’’. For the said purposes, lease agreements

were entered into with various land owners and impending further

change of policy, these land owners as well as in some cases, the

dealers of adjacent retail outlets were temporarily permitted to run

these outlets. When further change of policy decision was taken,

these land owners/temporarily permitted persons challenged the

same and ultimately, the matter reached the portals of the

Honourable Supreme Court of India and by a judgment in a batch of

cases in Mohammed Jamal .vs. Union of India reported in

(2014) 1 SCC 201, the Honourable Supreme Court of India

ultimately decided against the land owners/other temporary

contract holders that the doctrine of promissory estoppel or

legitimate expectation cannot be made applicable to these cases.

Pursuant to the said decision of the Honourable Supreme Court of

India, the orders impugned in the Writ Petitions were passed

terminating the contracts of the Writ Petitioners. Aggrieved by the

order passed by the learned Single Judge, the present batch of Writ

Petitions are filed.

3.The learned Single Judge holding that the

https://www.mhc.tn.gov.in/judis

Petitioners/appellants have no vested right, held that they cannot

as a matter of right cannot enjoy the running of retail outlets who

were originally granted temporary license. It is admitted before this

Court that the appellants were enjoying interim orders to the effect

that the respondents will not interfere with their possession till such

time oil companies appoint fresh dealers in the areas. It is to be

noted that the retail outlets are functioning well as on date and the

respondents did not dispute the requirement of these retail outlets

in the areas in which they exist as on date.

4.The learned standing counsel appearing for the

respondent/Oil Corporation submitted before this Court that they

have no inclination to disturb the existing operation of the retail

outlets, till such time, the dealers regularly appointed by the Oil

Companies will commence their operation. It is also admitted

before this Court that each one the appellants have given an

undertaking before the learned Single Judge. The learned Standing

Counsel for the respondent/Oil Company has also submitted that a

fresh affidavit may also be directed to be submitted by the

appellants to the Oil Corporation. The affidavit of undertaking given

by the appellants before the learned Single Judge reads as follows:

https://www.mhc.tn.gov.in/judis

‘’4.I submit that no new steps have been taken for allotment of the retail outlet dealership in favour of any other person. As and when the Government of India, Ministry of Petroleum and Natural Gas Commission and the respondents herein come out with a new policy for grant of dealership in respect of the existing retail outlets and on appointment of a new dealer for the Retail Outlet on the basis of such appointment in respect of the Retail Outlet at Avanam Kaikatti, Pudukottai District, I undertake to vacate and hand over the retail outlet to the Respondent herein within a period of four weeks from the date of such appointment of retail outlet dealership.’’

The appellants, who have now operated the retail outlets is on the

basis of the temporary license granted by the oil companies.

5.Recording the statement of the learned Standing Counsel

appearing for the respondent and the affidavit of undertaking given

by each one of the appellants, this Court is inclined to dispose of

the above Writ Appeals in the following lines:

1.The order of the learned Single Judge in all the Writ

petitions are set aside.

https://www.mhc.tn.gov.in/judis

2.The respondent is directed to permit the appellants to

operate the retail outlets run by them on the basis of the temporary

license given to them till such time the respondent appoint regular

dealers under any scheme and till such time the regular dealers

commence their business.

3.Till issuance of letter of intent and till such time the regular

dealers were appointed by the respondent, pursuant to the

communication that will be issued by the respondent in each of the

case, the appellants may be permitted to run the retail outlets on

the basis of the temporary license.

4.Once the regular dealer is appointed on the communication

issued by the respondent, the appellants shall vacate the premises

within a period of four weeks from the date of such communication.

5.The appellants are also directed to give fresh affidavit of

undertaking before the respondents, as it was given earlier before

the learned Single Judge at the interlocutory stage within a period

of two weeks from the date of receipt of a copy of this judgment.

6.With the above directions, all these Writ Appeals are

https://www.mhc.tn.gov.in/judis

allowed. No costs. Consequently, connected Miscellaneous Petitions

are closed.

                                                         [S.S.S.R.,J.]      [D.B.C.,J.]
                                                                     14.09.2023


                     Index:Yes/No
                     Internet:Yes/No
                     NCC:Yes/No
                     vsn
                     To

                     The Senior Regional Manager,

Hindustan Petroleum Corporation Limited, Trichy Retail Regional Office, No.90, II Floor, MSDR Enclave, Bharathidasan Road, Cantonment, Trichy – 629 001.

https://www.mhc.tn.gov.in/judis

S.S.SUNDAR, J.

AND D.BHARATHA CHAKRAVARTHY, J.

vsn

COMMON JUDGMENT MADE IN W.A(MD)NOs.1546 to 1556 OF 2023 and C.M.P(MD)Nos.12079,12084, 12096,12069,12072, 12076,12065,12066,12078, 12081 and 12082 of 2023

14.09.2023

https://www.mhc.tn.gov.in/judis

 
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