Supreme Court Upholds LPG Distributorship Allotment in West Bengal

The Supreme Court of India has ruled in favor of Mrinmoy Maity in a long-standing dispute over an LPG distributorship in West Bengal. The case, Mrinmoy Maity vs. Chhanda Koley & Others, addressed allegations of improper land selection and retrospective application of amended guidelines in the selection process for an LPG distributor in Jamalpur, District Burdwan.

Background of the Case

The dispute arose when an advertisement was issued on September 9, 2012, for granting an LPG distributorship under the GP Category in Jamalpur, West Bengal. Both Mrinmoy Maity (appellant) and Chhanda Koley (respondent) applied for the distributorship and were found eligible.

Following a draw of lots on May 11, 2013, Mrinmoy Maity was selected for the distributorship. The Letter of Intent (LOI) was issued to him on February 24, 2014, and final approval was granted on June 3, 2014. However, after a delay of four years, in 2017, Chhanda Koley filed a writ petition challenging the allotment, arguing that the land originally offered by Maity was Barga land and, therefore, not eligible.

Legal Issues Considered

The Supreme Court examined the following key legal issues:

Whether the writ petition was barred by delay and laches, given that the allotment occurred in 2014 and was challenged only in 2017.
Whether the alternate land offered by Mrinmoy Maity in 2017 was valid under the LPG distributor selection guidelines.
Whether the Division Bench of the High Court erred in setting aside the allotment, despite the modifications to the guidelines allowing for flexibility in land selection.

Arguments by the Appellant (Mrinmoy Maity)

The High Court erred in entertaining the writ petition after a four-year delay, despite the respondent’s full knowledge of the allotment.
As per the Oil Marketing Companies’ (OMCs) revised guidelines of April 30, 2015, candidates were allowed to offer alternate land if the initially offered land did not meet eligibility requirements.
The alternate land he offered met all specifications and was approved by the Bharat Petroleum Corporation Limited (BPCL).
The High Court ignored material facts and dismissed the judgment of the Single Judge, who had upheld the allotment.

Arguments by the Respondent (Chhanda Koley)

The appellant’s original land was Barga land, making him ineligible for selection.
The BPCL’s acceptance of alternate land was arbitrary and against the 2012 selection guidelines.
The revised guidelines allowing for flexibility in land selection should not have been applied retrospectively to the 2012 selection process.
The allotment was in violation of Clause 7.1(vi) and (vii) of the original selection guidelines.

Supreme Court’s Judgment

The Supreme Court ruled in favor of Mrinmoy Maity, overturning the High Court’s decision and reinstating the Single Judge’s order, which had upheld the allotment.

1. Delay and Laches

The Court held that the writ petition should have been dismissed outright due to delay.
Chhanda Koley participated in the selection process, was aware of Maity’s selection since 2014, and failed to challenge the allotment within a reasonable time.
“A litigant who sleeps over their rights for years cannot be granted extraordinary relief by the court.”

2. Validity of Alternate Land Selection

The Supreme Court found that the alternate land offered by Maity met all eligibility criteria.
BPCL’s approval was based on updated guidelines allowing flexibility, and there was no evidence of favoritism.
The High Court wrongly substituted its view for that of BPCL’s expert evaluation.

3. Non-Retrospective Application of Guidelines

The Court held that the 2015 modification of guidelines allowing candidates to offer alternate land was valid for pending cases.
Since the BPCL decision was made after the new guidelines came into effect, applying them was not retrospective.

4. Final Orders

The Supreme Court set aside the High Court’s decision and restored the Single Judge’s ruling.
The writ petition filed by Chhanda Koley was dismissed.
BPCL’s approval of the alternate land remained valid.
Mrinmoy Maity’s LPG distributorship was upheld, and he was allowed to continue operations.

Legal Implications of the Judgment

This ruling has significant implications for business allotments and tendering processes:

Timely Legal Challenges: Delayed challenges to government allotments may not be entertained.
Flexibility in Land Selection: The judgment affirms that procedural modifications can be applied to ongoing cases.
Judicial Deference to Expert Decisions: Courts should not interfere in technical decisions made by expert bodies like BPCL.

Conclusion

The Supreme Court’s ruling in Mrinmoy Maity vs. Chhanda Koley & Others reaffirms the importance of timeliness in legal challenges and respects expert evaluations in government selection processes. By dismissing the writ petition, the Court has ensured that procedural delays do not disrupt business operations and administrative decisions.

Petitioner Name: Mrinmoy Maity.
Respondent Name: Chhanda Koley & Others.
Judgment By: Justice Pamidighantam Sri Narasimha, Justice Aravind Kumar.
Place Of Incident: Jamalpur, District Burdwan, West Bengal, India.
Judgment Date: 18-04-2024.

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