Decision to cancel LPG distributorship challenged

Indian Oil Corporation’s decision to cancel and withdraw LPG distributorship at Jalandhar on the ground that land offered did not fall in the advertised location has come under judicial scanner with the allottee challenging the action. Among other things, the petitioner has alleged the violation of principles of natural justice.

Taking up the petition filed against Indian Oil Corporation Limited and another respondent by Alka Ahir through counsel RS Bajaj, the Punjab and Haryana High Court has ordered that distributorship in question would not be allotted to a third party.

The direction by Justice GS Sandhawalia came after Bajaj submitted that the LPG distributorship at Jalandhar’s Avtar Nagar was issued vide letter dated November 3, 2016. But the same was cancelled and withdrawn vide the impugned order dated August 29, last year.

Bajaj contended that the dealership was cancelled on the ground that land offered did not fall in the advertised location. Bajaj added that the land at an initial point of time was offered in Jalandhar’s Khurla village, after getting the requisite certificate dated September 22, 2016, from the Municipal Corporation concerned.

It was also verified by the respondent corporation. Thereafter, another chunk of land, which was better located in the same locality as per Municipal Corporation certificate dated was also offered.

Taking note of the submissions, Justice Sandhawalia asserted: “It is, accordingly, contended that while passing the impugned order neither any show cause notice has been issued on the complaints received, nor the petitioner was associated and, therefore, the principles of natural justice have been violated”.

Tribune India
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