Case Note & Summary
The case involved a series of appeals challenging the Delhi High Court's judgment that cancelled discretionary allotments of petroleum dealerships made by the Minister of Petroleum. The litigation arose from a Public Interest Litigation filed by the Centre for Public Interest Litigation, which sought guidelines to regulate the minister's discretionary powers in allotting petroleum products. The Supreme Court had previously issued guidelines to ensure that such allotments were made in accordance with the rule of law and to minimize arbitrariness. The High Court found that numerous allotments were made to individuals with connections to the minister or other influential figures, indicating a pattern of favoritism. The Supreme Court reviewed the High Court's findings and upheld its decision, emphasizing that the allotments were made without proper verification and were influenced by extraneous factors. The Court directed that the High Court should expedite the hearing of the pending writ petitions challenging these allotments. The appeals were ultimately dismissed, affirming the High Court's cancellation of the allotments and the need for compliance with established guidelines to prevent arbitrary actions by public officials.
Headnote
A) Administrative Law - Discretionary Allotments - Cancellation of Allotments - Constitution of India, Article 32 - The Supreme Court upheld the Delhi High Court's cancellation of discretionary allotments made by the Minister, finding them arbitrary and motivated by extraneous considerations. The Court emphasized the need for adherence to guidelines established to prevent arbitrary exercise of discretion in public matters (Paras 1-5).
Issue of Consideration
Whether the Delhi High Court was justified in cancelling the discretionary allotments made by the Minister of Petroleum.
Final Decision
The Supreme Court upheld the Delhi High Court's cancellation of the discretionary allotments, affirming that they were made arbitrarily and without adherence to established guidelines. The Court emphasized the need for compliance with the rule of law in public allotments.
Law Points
- Discretionary allotment
- Public Interest Litigation
- Arbitrary action
- Guidelines for allotment
- Judicial review


