POONAM KUMARIversusJAI PRAKASH PANDEY & ORS.
- Citation
- 2008 INSC 503
- Decided
- 21 April 2008
- Disposal
- Disposed off
- Bench
- ARIJIT PASAYAT
Holding
The Supreme Court declined to interfere with the High Court's order and directed that the matter be considered by a Selection Committee nominated by the General Manager, IOC, Bihar State Office, due to procedural lapses and the DSB's non‑existence.
Summary
The appellant, Poonam Kumari, was selected as a dealer for an Indian Oil Corporation (IOC) petrol pump and began operations after receiving a Letter of Intent. A writ petition filed by another applicant challenged the Dealer Selection Board's (DSB) selection, and the High Court quashed the DSB's decision without giving notice to the appellant. The appellant filed a Letters Patent Appeal (LPA) seeking relief, but the High Court division bench remitted the matter to the DSB for fresh consideration, holding there was no illegality. The Supreme Court observed that the DSB had ceased to exist and that procedural irregularities warranted fresh consideration, but declined to interfere with the High Court's order. Instead, it directed that the matter be dealt with by a Selection Committee nominated by the General Manager of IOC, Bihar State Office, to decide expeditiously, without expressing any view on the merits. The appeal was disposed of with no costs.
Issues considered
- Whether the selection made by the Dealer Selection Board can be set aside due to lack of notice and procedural irregularities.
- Whether the High Court's order remitting the matter to the DSB for fresh consideration is valid given the DSB no longer exists.
- Whether the matter should be considered by a selection committee nominated by the General Manager of IOC in lieu of the DSB.
Legislation cited
- Constitution of Indias. Article 136
Subjects
Judgment
[2008] 6 S.C.R. 740
A POONAM KUMARI
v.
JAi PRAKASH PANDEY & ORS.
(Civil Appeal No: 2871 of 2008)
APRIL 21, 2008
B
[DR. ARIJIT PASAYAT AND P. SATHASIVAM, JJ.) •
Constitution of India, 1950 -Article 136 - Dealership in
respect of retail outlets of petrol pump - Selection of appellant
c by Dealer Selection Board (DSB) - Challenged in writ petition
by respondent-Appellant not served with notice- Writ petition
allowed and selection made by DSB quashed - LPA -
Disposed of, with observation that appellant be granted liberty
to file application for consideration of her case - Application
by appellant - Single Judge of High Court held that though
D
she was not afforded opportunity of hearing before allowing
writ petition, there was no necessity for changing the ultimate '
.
decision - Division Bench of Hfgh Court held that since matter
was remitted to DSB for fresh consideration, there was no
illegality in the order - Challenge to - Held: Matter to be
E considered by high officials of IOC - No interference called
for-As procedural irregularities were noticed by Single Judge,
consideration be made by Selection Committee nominated
by GM, IOC.
F Appellant was selected on the basis of interview for
appointment of dealer in respect of certain retail outlets I •
of petrol pumps and was issued Letter of intent on
8.11.2001. According to appellant, she had made
substantial investment in making retail outlet operational.
The entire infrastructure was put up by IOC including the
G
arrangement of the land, the oil tanks were installed and
certain persons were employed as members of staff and
with effect from 12.11.2001, appellant started operating the
Retail Outlet. "'
H 740
POONAM KUMAR! v. JAi PRAKASH PANDEY & ORS. 741
.,. Respondent no.1, who was also one of the A
applicants and whose name did not figure in the select
list, filed a writ petition in the High Court challenging the
selection made by the Dealer Selection Board (DSB). The
main allegation of Respondent no.1was that even though
his father had made the land available to IOC, he was not B
given a preference in the matter of allotment and
appointment as a dealer. In the Writ petition appellant was
also impleaded as a party. However, no notice was served
on her. The Writ Petition was allowed on 15.1.2004 and
the selection made by the DSB was quashed. Since c
J appellant claimed that no notice was served on her and
she was not in a position to place her case before Sirigle
Judge who heard and allowed the Writ Petition,"'she ·filed
LPA. After hearing the parties, the Division Bench
disposed of the LPA observing that in the interest of
D
justice, the appellant should be granted liberty to file
. '> application for consideration of her case so that the Court
could pass such orders as it may deem fit and just on her
application and if an application is filed for consideration
of the writ court within a week, this matter would be placed
as a fresh case. Pursuant to the said order, an application E
was filed praying that the order dated 15.1.2004 in the Writ
Petition be recalled.
Single Judge took up the matter and after noticing
the grievance of the appellant held that though she was F
not afforded the opportunity of hearing before allowing
" ' the writ petition, there was no necessity for changing the
ultimate decision. The Appellant filed the LPA questioning
the said order. By the impugned order the Division Bench
of the High Court held that since the matter has been
G
,. remitted to the DSB for fresh consideration, there was no
illegality in the order.
~ In appeal to this Court, appellant contended that in
view of the order passed by this Court in another case
and on account of the fact that the appellant has made H
742 SUPREME COURT REPORTS [2008] 6 S.C.R.
A huge investments and had made the retail outlet
operational and it was functioning, without any reason
the facility has been withdrawn and therefore, prayed that
pending disposal of the matter she should be permitted
to operate.
B Respondent contended that noticing that there were ·
several irregularities, the DSB was asked to reconsider
the matter.
Disposing of the appeal, the Court
C HELD: It appears from the order of the Single judge
that he found that there were certain procedural
irregularities committed by the DSB and therefore a fresh
consideration was warranted. The counsel of the IOC
informed that the DSB is not in existence since 9.5.2002
D and further pointed out that in another case, the Court
directed that the matter should be considered by high
officials of IOC in its zonal office. While declining to
interfere in the matter, because of the procedural lapses
noticed by Single Judge, it is directed that instead of DSB,
E which is no longer in existence, in the line of what has
been directed by this Court in another case, consideration
should be made by the Selection Committee nominated
by the General Manager, IOC, Bihar State Office, Patna,
who is stated to be the State Head. The Committee is
F directed to deal with the matter expeditiously. [Paras 8-
10] [745-G, H; 746-A, 8, C] ..
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
2871 of 2008.
G From the final Judgment and Order dated 07.04.2004 of
the High Court of Judicature at Patna in LP.A. No. 409 of 2004.
Himanshu Shekhar Jha and Rameshwar Prasad Goyal for
the Appellant.
Dr. R.G. Padia, Ranjan Mukherjee, S.C. Gho.sh, H.K. Puri,
H
POONAM KUMAR! v. JAi PRAKASH PANDEY & ORS. 743
[DR. ARIJIT PASAYAT, J.]
.Priya Puri, S.K. Puri, V.M. Chauhan. TufaliA. Khan, B.K. Prasad, A
M.P. Parmeshwaran and Shiv SagarTiwari for the Respondents.
"<rhe Judgment of the Court was delivered by
DR. ARIJIT PASAYAT, J. 1. Leave granted.
-.. . B
., Challenge in this appeal is to the order of a Division Bench
.,of the Patna High Court dismissing the Letters Patent appeal
filed by the appellant.
2. Background facts in a nutshell are as follows:
... c
On 1.9.2000, the Indian Oil Corporation Ltd. (in short the
'IOC') issued advertisement inviting applications for appointment
,of a dealer in respect of certain retail outlets (petrol pumps) in
. various places including one in. Brahampur in State of Bihar.
The appellant was one of the applicants. The applications were
verified by IOC and the applications of all the eligible candidates D
-~
were forWarded to the Dealer Selection Board (in short the
'DSB') for making selection. The DSB issued interview letters
to all those candidates who were found eligible. It considered
the materials placed before it by the applicants and produced
during interviews, and on the basis of the interview allegedly E
prepared a select list on merits in the following order:
1. Smt. Poonam Kumar-Appellant,
2. Sh/i Diriesh Kumar Singh; and
3. Shri Anil Kumar. F
" -I
On being placed at no.1 in the Select List, a letter of Intent
was issued on 8.11.2001 and the necessary order was handed
over to the appellant. She claims to have made substantial
investments in making the Retail Outlet operational. The entire
infrastructure was put up by IOC including the arrangement of G
the land, the oil.tanks were installed and certain persons were
employed as members of staff and with effect from 12.11.2001,
appellant started operating the Retail Outlet
. One J.P. Pandey (Respondent no.1 ), who was also one of
H
744 SUPREME COURT REPORTS (2008] 6 S.C.R.
A the applicants and whose name did not figure in the select list,
filed a writ petition in the High Court challenging the selection
made by the DSB. There the main allegation was that even
though his father had made the land available to IOC, he was
not given a preference in the matter of allotment and appointment
B as a dealer. In the Writ petition appellant was also impleaded
as a party. However, no notice was served on her. By a judgment
dated 15.1.2004 the Writ Petition was allowed and the selection
made by the DSB was quashed. Since appellant claimed that
no notice was served on her and she was not in a position to
C place her case before learned Single Judge who heard and
allowed the Writ Petition, she filed LPA No.93 of 2004. On
3.2.2004 after hearing the parties, the Division Bench disposed
of the LPA observing as follows:
"On record it is clear and apparent and some of the
D Respondents were not before the Writ Court to make a
submission for the simple reason that they were without
notice.
This Court is of the opinion that it would be expedient and
appropriate in the interest of justice that the appellant
E (respondent No. 6 in the Writ petition) is granted a liberty
to apply for having the matter considered upon her case
so that the Hon'ble Court may pass such orders 3S the
Court may deem fit and just on her application.
F Regard being had to the circumstances of this case if an
application is filed for consideration of the writ court within r •
a week, this matter will be placed as a fresh case."
Pursuant to the said order, an application (MJC No.256 of
2004) was filed praying that the order dated 15.1.2004 in the
G Writ Petition (C.W.J.C No. 14506 of 2001) be recalled.
3. Learned Single Judge took up the matter on 3.3.2004
and after noticing the grievance of the appellant held that though
she was not afforded the opportunity of hearing before the Writ
H Petition was allowed, there was no necessity for changing the
POONAM KUMARI v. JAi PRAKASH PANDEY & ORS. 745
[DR. ARIJIT PASAYAT, J.]
ultimate decision. The Appellant filed the LPA 401 of 2004 A
questioning the order passed. By the impugned order the
Division Bench of the Patna High Court held that since the matter.
has been remitted to the DSB for fresh consideration, there was
no illegality in the order.
4. Learned counsel for the appellant submitted that learned B
Single Judge accepted that the appellant had not got the
opportunity of being heard. The earlier reasoning could not have
been repeated to dismiss the application.
5. It is pointed out that the appellant was placed at serial c
No.1 of the select list and had been given permission to operate
retail outlet and had made huge investments and therefore her
selection could not have been nullified by learned Single Judge.
It is therefore submitted that the LPA should have been allowed.
6. Learned counsel for the appellant has further pointed D
~._ out that in view of the order passed by this Court, and on account
of the fact that the appellant has made huge investments and
had made the retail outlet operational and it was functioning,
without any reason the facility has been withdrawn. It was,
therefore, prayed that pending disposal of the matter she should E
be permitted to operate.
7. On the other hand, learned counsel for the respondents
submitted that noticing that there were several irregularities, the
DSB was asked to reconsider the matter.
F
8. It is pointed out that the writ petitioner had brought to the
notice, in the writ petition, that his father had given land to IOC
on lease for about thirty years with an option of further renewal
for thirty years. It was, therefore, pleaded that preference ought
to have been given to the writ-petitioner, but had not been really G
given. It appears from the order of the learned Single judge that
he found that there were certain procedural irregularities
committed by the DSB and therefore a fresh consideration was
warranted.
9. It is pointed out by learned counsel of the IOC that the H
746 SUPREME COURT REPORTS [2008] 6 S.C.R.
A DSB is not in existence since 9.5.2002. It is further pointed out
that in another case, the Court directed that the matter should
be considered by high officials of IOC in its zonal office .
. 10. While declining to interfere in the matter, because of
the procedural lapses noticed by learned Single Judge, we
B direct that instead of DSB, which is no longer in existence, in
the line of what has been directed by this Court in another case,
we direct that consideration shall be made by the Selection
Committee nominated by the General Manager, IOC, Bihar State
Office, Patna, who is stated to be the State Head. Let the
C Committee deal with the matter expeditiously. Since the matter
is pending long, we direct the Committee to consider the matter
in its proper perspective, by taking into account all the materials
already on record and to be placed by the parties. Let the
exercise be completed within a period of four months from today.
D We make it clear that we have not expressed any opinion on
the merits of the case.
11 .. Appeal is disposed of accordingly. No costs.
D.G. Appeal disposed of
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