Case: Senior Law Manager, Indian Oil Corporation Ltd. and Anr Vs. Guru Shakti Singh and Anr

The appellants (Indian Oil Corporation Ltd.), issued an advertisement inviting applications for grant of LPG distributorship for Sohawal, District Faizabad, Uttar Pradesh. The Dealer Selection Committee constituted by the appellants interviewed the eligible candidates and declared a panel of three candidates, on 30.3.2005, in the following order of merit : (1) Guru Shakti Singh (first respondent); (2) Sardar Mahinder Singh; and (3) Lal Rajendra Nath Singh. As per the said selection first respondent had to be granted the LPG distributorship.3. The second candidate in the list (Sardar Mahinder Singh) filed a complaint with the appellants, alleging illegalities and irregularities in awarding marks by the Selection Committee, resulting in the first respondent being placed as the first in the merit panel. Shortly thereafter, the said Sardar Mahinder Singh filed a writ petition challenging the selection process and the panel of candidates. The said writ petition filed on 4.5.2005, was withdrawn on 18.5.2005. Sometime thereafter the said Sardar Mahinder Singh died.4. The appellants thereafter cancelled the entire selection process on 27.10.2005, and took a decision for re-interview the candidates. The first respondent filed a writ petition for quashing the said order dated 27.10.2005 and seeking a direction to the appellant to issue him the letter of intent for Distributorship as he was the first in the merit panel. The said writ petition was allowed by the impugned order dated 6.2.2007 holding that there should be no re-interviews and the appellant should proceed with the selection as already conducted in accordance with law. The effect of the order was that the first respondent should be granted the distributorship. The said order is challenged in this appeal by special leave.

Reasoning:
The High Court appears to have proceeded on the basis that even though the selection process was illegal, as the complainant (Sardar Mahinder Singh), who had alleged the irregularities had died, the irregularities were no longer relevant and would no longer exist and the merit panel should be accepted. Unfortunately, the High Court failed to deal with the larger issue as to whether the Selection Committee had acted fairly and properly in awarding the marks and preparing the merit panel. If the finding was that the marks were wrongly assigned to the complainant and consequently, first respondent had benefited, it does not follow that when the complainant dies, the irregularity in assigning marks could be brushed aside or ignored. In such selections, any illegality or material irregularity in assigning marks in regard to any person with the intention of favouring some one or excluding some one, vitiates the entire selection process. Such a selection process cannot be saved by holding that the person in regard to whom lesser marks were given had died or failed to pursue his remedy. Once the appellants took cognizance of the illegality in the selection process, the withdrawal of writ petition on death of the aggrieved complainant lost significance. The issue, as already noticed, is whether the selection process was fair and proper and whether the appellant acted arbitrarily or unreasonably in taking a decision to scrap the selection process and re-interview the candidates.10. Assigning of lesser marks to Sardar Mahinder Singh not only denied him the first place in the panel, but also unjustly and undeservedly gave the first respondent, the first place in the panel. The manner of assigning marks showed a clear intention to favour the first respondent at the cost of the other applicants. It is this finding that persuaded the General Manager of IOC to scrap the selection. The High Court having recorded a finding that the appellant was satisfied about the illegality committed by the selection committee, ought to have rejected the writ petition, as the decision of the appellants to scrap the selection was reasonable and not arbitrary.