Disputed Land and Retail Dealership: Supreme Court’s Verdict on Indian Oil Corporation Allotment
The case between Sanjay Kumar Jha and Prakash Chandra Chaudhary revolves around the allotment of a retail outlet dealership by the Indian Oil Corporation. The dispute originated from an advertisement issued by the corporation in 2011 inviting applications for Kisan Seva Kendra dealerships, which led to legal contentions regarding eligibility and land suitability.
Background of the Case
In 2011, Indian Oil Corporation published an advertisement seeking applications for retail dealership locations, including one at Giriyama in Bihar. Both Sanjay Kumar Jha and Prakash Chandra Chaudhary applied for the dealership, and an evaluation panel awarded higher marks to Jha, leading to his selection.
Chaudhary, however, contested the decision in the Patna High Court, arguing that the evaluation process was flawed and his land was wrongly considered unsuitable. The Single Judge of the High Court ruled in his favor, directing the Indian Oil Corporation to grant him the dealership.
Arguments Presented
Petitioner’s Argument (Sanjay Kumar Jha)
- The selection panel had lawfully awarded him the highest marks.
- Chaudhary’s land was located outside the Giriyama region and hence ineligible.
- The High Court’s interference in factual determinations was beyond its jurisdiction.
Respondent’s Argument (Prakash Chandra Chaudhary)
- The evaluation process was biased, as he was unfairly awarded zero for fixed and movable assets.
- His land was within the eligible area, and official reports stating otherwise were erroneous.
- He should have been declared the highest-scoring candidate based on fair calculations.
Supreme Court’s Observations
The Supreme Court criticized the High Court’s handling of the matter, particularly its reliance on disputed factual determinations. The Court noted:
- “It is well settled that in proceedings under Article 226 of the Constitution of India, the High Court does not adjudicate, upon affidavits, disputed questions of fact.”
- The High Court erred by dismissing reports from revenue authorities confirming that Chaudhary’s land was outside Giriyama.
- Even if the marking process was flawed, the High Court should have remitted the case for reconsideration rather than making a direct ruling.
Final Verdict
The Supreme Court overturned the High Court’s decision, restoring the original selection of Sanjay Kumar Jha. It ruled that administrative findings should not be interfered with unless there is a fundamental violation of justice. The appeal was allowed, and the dealership allotment to Jha was reinstated.
Petitioner Name: Sanjay Kumar Jha.Respondent Name: Prakash Chandra Chaudhary.Judgment By: Justice Indira Banerjee, Justice R. Banumathi.Place Of Incident: Giriyama, Katihar District, Bihar.Judgment Date: 05-12-2018.
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