Indian Oil Corporation Ltd.. vs Shashi Prabha Shukla .

1. The Indian Oil Corporation Limited (hereafter to be referred to as the “IOC/Corporation”) and its functionaries, in this appeal seek to overturn the judgment and order dated 04.10.2004 rendered by the High Court of Judicature at Allahabad in Civil Misc. Petition No. 34886 of 1998, thereby directing the Corporation to convert the dealership of a petrol pump initially allotted in favour of the respondent No.1 (hereafter to be referred to as the “respondent”) under the discretionary quota of the Departmental Minister 2 concerned to one under its (appellant) circular No.67-2/2K4 dated 12.02.2004 and restraining it as well from interfering with the possession of the respondent of the installation premises. As the sequence of events would unfold, the attendant facts do project a distressing state of affairs in the matter of distribution of State largesse, seemingly motivated by irrelevant considerations, deliberate defaults and casual disregard to binding judicial adjudications of a Constitutional Court.

3. First the skeletal facts, to facilitate the desired grip of the issues to be addressed. The respondent herein, claiming to be an unemployed graduate but actively involved in activities pertaining to rural development and welfare of women, but without any regular source 3 of livelihood, applied to the then Minister of Petroleum, Government of India, New Delhi for being sanctioned a petrol pump under his Special Discretionary Quota on the National Highway, Phutahia Chauraha, Tehsil and District Basti, U.P. The application was considered for allotment of a retail outlet dealership on compassionate ground and was forwarded for necessary follow-up action to the Direction (Marketing), Indian Oil Corporation, Bombay on 08.08.1985. In deference to the said communication, the Corporation issued a Letter Of Intent (LOI) on 04.10.1995 for a retail outlet dealership in motor spirit and high speed diesel oil on the National Highway at Phutahia Chauraha, District Basti under “A” category. Thereafter a lease deed was executed on 16.09.1996 between the respondent and the appellant/Corporation for a period of 30 years at a monthly rent of Rs.1650/- payable to the former by the latter w.e.f. 01.03.1996 and was made renewable at the option of the parties. It was inter alia agreed 4 that the appellant/Corporation would develop the retail outlet and provide the same to the respondent with certain facilities, such as, a suitable plot of land duly developed as an outlet with office building, storage, tank and pump, air facility etc.

4. The pleaded stand of the respondent in this regard however is that though the dealership was declared to be under “A” category, for which as per the norms, the appellant/Corporation was required to provide the infrastructure including land, in her case on its persuasion and insistences, she had to purchase the necessary land and make further investments to make it fit for the installation by expending more than Rs.14 lakhs, against which she was to receive a nominal monthly lease rent of Rs.1650/-. She also expressed her grievances with regard to the allotments of the supplies made to her from time to time, resulting in heavy financial loss to her in business.

8. The Corporation accordingly on 13.10.1997, issued a notice to the respondent intimating her that the dealership agreement between the parties at the close of the business hours on 30.11.1997 would be treated 11 as terminated and that she would not be entitled to operate the outlet on and from 01.12.1997. It was also conveyed that w.e.f. 01.12.1997, neither she nor her agents/employees and/or representatives would be entitled to enter the retail outlet premises. It was clarified that all these would be without prejudice to any other claim the Corporation might have against her under the terms of the dealership agreement and in law.

9. Meanwhile, the respondent had on 23.09.1997 intimated the Ministry of Petroleum, Government of India, New Delhi that she was not interested to sell or part with the land on which the petrol pump distributorship was underway. She also filed SLP (C) No. 19872 of 1997 before this Court challenging the judgment and order dated 29.08.1997, which was disposed of on 20.10.1997 leaving her at liberty, as prayed for, to seek a review before the High Court. Incidentally, the review petition filed by her was dismissed on 07.11.1997, whereupon she 12 unsuccessfully assailed the same in a fresh special leave petition before this Court, which too was dismissed on 28.11.1997. Thus, the judgment and order dated 29.08.1997 of the Delhi High Court attained finality and eventually the retail outlet was closed and the facilities were taken over by the Corporation w.e.f 01.12.1997.

10. The respondent No.1 however in response to the notice dated 13.10.1997, did call upon the Corporation to return the land in the same condition as it had been given to it within 15 days, stating further that failing which, it would be required to pay rent @ Rs. 50,000/- per month for use and occupation of the premises and also damages from 23.02.1996.

35. In the singular facts and circumstances, we are greatly anguished and appalled by the manner in which the Corporation and its functionaries have acted in the face of the judgment and order dated 29.08.1997 of the Delhi High Court. We have no hesitation to record that we are left with the impression that the failures on their part may not be wholly bona fide. In this view of the matter, we direct the Corporation to cause an in-house inquiry to be made to fix the liability of the errant officials on the issue and decide appropriate action(s) against them in accordance with law within a period of two months herefrom. The Corporation after completing this exercise would submit a report before this Court for further orders, if necessary. We make it clear that any breach or non-compliance of this direction would be per se construed to be a contempt of this Court with penal consequences as contemplated in law. The appeal is allowed. No costs.

DECEMBER 15, 2017.