Lok Sabha Question No. 2759 (UNSTARRED), answered on 2018-03-12
Subject: Legal Cases of Oil Companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: PONGULETI SRINIVASA REDDY

## LOK SABHA UNSTARRED QUESTION NO. 2759 TO BE ANSWERED ON 12 th  MARCH, 2018

## LEGAL CASES OF OIL COMPANIES

2759. SHRI PONGULETI SRINIVASA REDDY :

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether  the  Oil  Marketing  Companies  such  as  HPCL,  BPCL  and  IOCL  are fighting legal cases in various courts across the country and if so, the details thereof;
- (b)  whether  it  is  true  that  a  major  share  of  their  revenue  is  being  spent  on  legal battling or on arbitration;
- (c) if so, the details thereof along with the cases pending in various courts across the country  and  particularly  IOCL  cases,  which  are  pending  in  Andhra  PradeshTelangana High Court including arbitration cases;
- (d)  the  details  of  number  of  disputes  relating  to  the  marketing  division  of  IOCL  in respect  of  Retail  Outlets  in  various  courts  across  the  country  and  legal  expenses being  borne  by  IOCL  during  the  last  three  years  particularly  court  cases  pending from Telangana and Andhra Pradesh;
- (e)  the  company-wise details of legal-expenses relating to marketing issues during each of the last three years; and
- (f) the detailed measures taken/ proposed to be taken by the Government  to reduce legal burden on companies and settle the disputes amicably out of the courts?

## ANSWER

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्री (श्री धमेन्द्र प्रधान)

## MINISTER OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) to (c)  -  At present, HPCL, BPCL and IOCL are engaged in 4613, 3785 & 8999 number  of  legal  cases  respectively  in  various  courts  across  the  Country.  Oil Marketing Companies (OMCs) pay professional fee to advocates engaged by them on case to case basis.
- (d) - Number of disputes relating to Retail Outlets of IOCL in various courts across the country along with legal expenses during the last three years are as under:

| Year                    |   Number of disputes respect of Retail Outlets |   Amount spent on legal expenses (Rs. In crores) |
|-------------------------|------------------------------------------------|--------------------------------------------------|
| 2015-16                 |                                           2122 |                                             2.8  |
| 2016-17                 |                                           2047 |                                             2.63 |
| 2017-18(FY-till Jan'18) |                                           1988 |                                             1.84 |

Information in respect of Retail Outlets from Telangana & Andhra Pradesh during the last three years are as follows:

| Year                     |   Number of Litigations |   Number of Arbitration cases |   Amount spent on legal expenses (Rs. In crores) |
|--------------------------|-------------------------|-------------------------------|--------------------------------------------------|
| 2015-16                  |                      12 |                             0 |                                             0.13 |
| 2016-17                  |                      16 |                             3 |                                             0.37 |
| 2017- 18(FY-till Jan'18) |                      20 |                             0 |                                             0.34 |

(e) -  OMC-wise legal expenses relating to Marketing issues during last three years are as under:

| Year                        | Amount spent on legal expenses (Rs. In crores)   | Amount spent on legal expenses (Rs. In crores)   | Amount spent on legal expenses (Rs. In crores)   |
|-----------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
|                             | HPCL                                             | BPCL                                             | IOCL                                             |
| 2014-15                     | 9.25                                             | 6.29                                             | -                                                |
| 2015-16                     | 9.59                                             | 5.30                                             | 11.80                                            |
| 2016-17                     | 11.47                                            | 7.00                                             | 11.29                                            |
| 2017-18 (Till January, 2018 | -                                                | -                                                | 11.70                                            |

(f) - IOCL has informed that a conciliation policy to settle disputes amicably out of the court  has  been  formulated.  Litigation  is  resorted  to  only  as  a  last  resort  in  case negotiation/discussion fails to deliver desired settlement.

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