Case: Sr. Divisional Retail Sales Manager, Indian Oil Corporation Ltd. through Poa Holder and Ors Vs. Ashok Shankarlal Gwalani

On 11th June, 2005, the Indian Oil Corporation Limited (hereinafter referred to as thepublished a proclamation in leading newspapers and invited applications for grant of petrol/diesel retail outlets (dealership) for various locations in the State of Maharashtra. The respondent on 14th July, 2005, amongst others applied for the same. Interviews were conducted on 9th-10th December, 2005. One Mr. Nilesh L. Kudalkar was placed at the top of the merit panel while the respondent was placed second and one Mr. K. Srinadha Rao was third. However, since the difference between the marks of the top three candidates was within 5%, the result of the interview was kept in abeyance in accordance with the policy of the company dated April 7, 2005. A Screening Committee was established which reviewed the markings and carried out another interview of the three candidates. The result was declared on 4th April, 2006 and Mr. Nilesh L. Kudalkar was first in the merit panel.4. Being aggrieved respondent and Mr. K. Srinadha Rao both made complaints on 10.4.2006 and 19.4.2006 respectively to the company alleging irregularities in the selection process. In accordance with the policy dated 1st September, 2005, an investigation was made by the Company into the allegations made by them. It was found, among other things, that the respondent and Mr. Srinadha Rao had not been marked correctly as regards their financial capability and that both had failed to provide the attested documents as had been specifically required under the advertisement. Since the allegations in the complaints were found to have merit, the selection was cancelled and all the candidates were to be called for re-interview. In the meantime, on 28th April, 2006, one Mr. Pritesh Chhajed, who was an M&H Contractor operating on the site filed Civil Suit No. 230/2006 before the Thane Sr. Division Court seeking an injunction against the company from terminating the contract and evicting him from the land. He was unsuccessful in the same and filed an appeal before the Bombay High Court which was dismissed by the High Court on 27th June, 2008 and he was asked to vacate the site by December 31, 2008.5. Re-interviews were conducted on 22nd and 24th December, 2008. The respondent was found to be the only candidate in the merit panel. However, complaints were received from Mr. Pritesh Chajjed (who had also appeared in the interviews) on 26th December, 2008 and from Mr. K. Srinadha Rao on 16.12.2008, 23.12.2008, 30.12.2008, 2.01.2009 and 10.02.2009. Again on 30.12.2008, a one man Inquiry Commission was appointed to investigate the allegations contained in the complaints. Also on 14.1.2009, Mr. Nilesh L. Kudalkar filed a Writ Petition vide no. 113 of 2009 against the company for cancelling the merit list and declaring him to be the no.1 candidate. The High Court of Bombay was pleased to dismiss the aforementioned writ petition in April, 2009.6. In the meantime, the inquiry instituted by the Company revealed that the complaints made by various persons had merit. 7. Therefore, on 6th August, 2009, the appellants sought approval from their management for re-advertisement of the location. On 18th August, 2009, the Company management advertised for re-interview of all the candidates including scrutiny of all documents from the initial stage in order to remove all errors from the selection process. Since the code of conduct for elections was in force, the re-interview was deferred till its withdrawal.In December, 2009, the L-1 Committee was appointed before which the applications along with other documents of all ten eligible candidates were placed. The Committee submitted its report. The candidature of the respondent was rejected on the ground that the ‘Relationshipwas not as per the format.n 3rd June, 2010, respondent was communicated about the rejection of his application.Being aggrieved respondent filed a writ petition being WP(C) No. 5032 of 2010 before the Bombay High Court on 17.6.2010 praying inter alia for issuing of an appropriate writ directing the appellants to allot the dealership at the site as per the advertisement dated 11.6.2005 and setting aside the letter dated 3.06.2010 to enforce the decision of the Selecting Committee dated 24.12.2008, which was allowed by the impugned order. According to the appellants, considering that all the former merit panels were vitiated on account of grave errors, including complaints received with regard to all the interviews, the Company is desirous of undertaking the selection process de novo by re-advertising the location.

Reasoning: is clear that the Interview Committee, Screening Committee and the Investigation Officer assessed the three candidates in three different groups due to which the position of the candidates changed in the merit list prepared by the Interview Committee, Screening Committee and the investigation Officer.16. In the present case, the High Court has not noticed and discussed the aforesaid facts and without discussing the further developments as taken place after 24.12.2008, directed the appellants to issue the Letter of Intent in favour of the respondent. Though the High Court noticed the stand taken by the appellants that the ‘relationshipsubmitted by the respondent was not as per format, it failed to discuss the effect of such an incomplete affidavit in the matter of selection.17. Generally, if an irregularity is detected in the matter of selection or preparation of a panel it is desirable to have a fresh selection instead of re-arranging the panel which is found to be vitiated. The Authority empowered to appoint, is the competent authority to decide as to whether the panel should be discarded and there should be a fresh selection in view of the facts narrated above. In such circumstances, the High Court under Article 226 of the Constitution of India ought to not have interfered with the decision of the competent authority in canceling the selection.18. For the reasons aforesaid, we have no other option but to set aside the order of the High Court.