Supreme Court Dismisses Challenge to LPG Distributorship Allotment — Land Offered by Successful Applicant Was Separate Parcel, No Disqualification Under Guidelines. The Court upheld the allotment to the 4th respondent, finding that the land leased to her was distinct from that offered by another applicant, and that acceptance of alternate land was permissible under the guidelines.

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Case Note & Summary

The appellant, Jagwant Kaur, challenged the allotment of an LPG distributorship at Balachaur by the Indian Oil Corporation (IOC) to the 4th respondent. The allotment process began with an advertisement dated 19.01.2013, and the 4th respondent was selected by draw of lots on 18.12.2014. The appellant contended that the 4th respondent's land was also offered by another applicant, inviting disqualification, and that the 4th respondent later offered alternate land not possessed at the time of application. The High Court dismissed the writ petition and appeal. The Supreme Court examined the facts and found that the lessor owned a larger extent of land (52 kanals 4 marlas), out of which two separate parcels of equal extent (1 kanal 17 marlas each) were leased to the 4th respondent and another applicant. Revenue records confirmed distinct parcels and separate mutation entries. The Court held that no co-owner consent was required as the 4th respondent was the sole lessee of land solely owned by the lessor. The alternate land was offered only due to the lessor's contradictory affidavits, and its acceptance was permissible under the guidelines as interpreted in Mrinmoy Maity v. Chhanda Koley. The Court found no merit in the appeal and dismissed it with no order as to costs.

Headnote

A) Petroleum Laws - LPG Distributorship Allotment - Land Eligibility - Lease Deed - The appellant challenged the allotment of LPG distributorship to the 4th respondent on the ground that the same land was offered by another applicant. The Supreme Court held that the two lease deeds were for separate parcels of land owned by the same lessor, as confirmed by revenue records, and thus no disqualification arose. (Paras 2-11)

B) Petroleum Laws - LPG Distributorship Allotment - Co-owner Consent - No Objection Certificate - The Court held that consent from co-owners is required only when the land is jointly owned or jointly leased. Since the 4th respondent was the sole lessee of a land owned solely by the lessor, no NOC was necessary. (Paras 6-9)

C) Petroleum Laws - LPG Distributorship Allotment - Alternate Land - Guidelines - The Court relied on Mrinmoy Maity v. Chhanda Koley to hold that offering alternate land is permissible under guidelines dated 15.04.2015 when the initially offered land is found deficient or unsuitable. The alternate land offered by the 4th respondent met all specifications and was accepted due to the lessor's shifting stance. (Para 12)

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Issue of Consideration

Whether the 4th respondent was disqualified from LPG distributorship allotment because the land offered was also offered by another applicant, and whether acceptance of alternate land after application was permissible.

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Final Decision

Civil Appeal dismissed. No order as to costs. Pending applications disposed of.

Law Points

  • LPG distributorship allotment
  • land eligibility
  • lease deed
  • co-owner consent
  • alternate land
  • field verification
  • guidelines interpretation
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Case Details

2025 LawText (SC) (1) 270

Civil Appeal No. ________ of 2025 (@ S.L.P. (C) No. ________ of 2025) (@ Diary No. 45994/2024)

2025-01-27

Sudhanshu Dhulia, K. Vinod Chandran

2025 INSC 112

V. Giri (Senior Counsel for appellant), Mrinal Kanwar R (for 4th respondent), Priya Puri (for respondent-Corporation)

Jagwant Kaur

Union of India & Ors.

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Nature of Litigation

Civil appeal against rejection of writ petition challenging allotment of LPG distributorship.

Remedy Sought

Appellant sought to set aside the allotment of LPG distributorship to the 4th respondent.

Filing Reason

Appellant alleged that the 4th respondent's land was also offered by another applicant, and that alternate land was accepted after application, violating guidelines.

Previous Decisions

Writ Petition dismissed by Single Judge; appeal dismissed by Division Bench of High Court.

Issues

Whether the 4th respondent was disqualified because the same land was offered by another applicant. Whether acceptance of alternate land after the application date was permissible under the guidelines.

Submissions/Arguments

Appellant: The 4th respondent's land was also offered by another applicant, inviting disqualification; alternate land not possessed at application time cannot be accepted. 4th Respondent: The two lease deeds were for separate parcels; alternate land was offered due to lessor's shifting stance and was permissible under guidelines. Corporation: Inquiries confirmed separate parcels; alternate land accepted as per guidelines.

Ratio Decidendi

The land offered by the 4th respondent was a separate parcel from that offered by another applicant, as confirmed by revenue records. No co-owner consent was required as the 4th respondent was sole lessee of land solely owned by the lessor. Acceptance of alternate land was permissible under the guidelines as interpreted in Mrinmoy Maity v. Chhanda Koley.

Judgment Excerpts

We find absolutely no reason to place any credence on the affidavit of the lessor dated 11.01.2018, which was quite contrary to the earlier affidavit of the lessor himself. Consent, as we discern, would be required only if the land offered in the application is one with either joint ownership or joint lease.

Procedural History

Advertisement dated 19.01.2013 for LPG distributorship; draw of lots on 18.12.2014 selected 4th respondent; selection cancelled and revived by Ministry guidelines; writ petition filed in High Court dismissed by Single Judge; appeal dismissed by Division Bench; Special Leave Petition filed in Supreme Court; leave granted on 27.01.2025.

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