High Court at Bombay Allows Writ Petition Challenging Rejection of Retail Outlet Dealership Application — Holds That Rejection Based on Non-Submission of Documents Without Prior Opportunity of Hearing Violates Principles of Natural Justice. The court quashed the rejection letters and directed the respondent to consider the application afresh after affording an opportunity of hearing.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Sandip Gorakh Naik, filed a writ petition challenging the communications dated 6th October 2021 and 25th October 2021 issued by respondent No. 3, the Head of the Regional Office (Retail), Hindustan Petroleum Corporation Ltd., Nashik, rejecting his application for allotment of a retail outlet dealership. The respondent had advertised for dealers of retail outlets on 25th November 2018, and the petitioner applied on 21st December 2018 from Group-2, offering land bearing Survey No. 19/2/B of village Dharajgaon. The respondent sent an e-mail on 9th January 2020 directing the petitioner to submit documents, which he did on 27th January 2020 and 24th March 2021. However, by communication dated 7th May 2021, the respondent informed the petitioner that the documents of land supplied were insufficient. Subsequently, without any further opportunity, the respondent rejected the application by the impugned communications. The court considered whether the rejection without giving an opportunity of hearing was sustainable. The court held that the rejection violated principles of natural justice as the petitioner was not given a chance to explain or comply with the requirements. The court allowed the petition, quashed the impugned communications, and directed the respondent to consider the petitioner's application afresh after giving him an opportunity of hearing.

Headnote

A) Administrative Law - Principles of Natural Justice - Opportunity of Hearing - Rejection of Application - The rejection of the petitioner's application for retail outlet dealership by the respondent without affording an opportunity of hearing is violative of principles of natural justice. The court held that before rejecting an application on the ground of non-submission of documents, the applicant must be given a chance to explain or comply. (Paras 1-10)

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Issue of Consideration

Whether the rejection of the petitioner's application for allotment of retail outlet dealership by the respondent without giving an opportunity of hearing is sustainable in law.

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Final Decision

The court allowed the writ petition, quashed the impugned communications dated 6th October 2021 and 25th October 2021, and directed the respondent to consider the petitioner's application afresh after giving him an opportunity of hearing.

Law Points

  • Principles of natural justice
  • opportunity of hearing
  • rejection of application without prior notice
  • violation of natural justice
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Case Details

2022 LawText (BOM) (08) 61

Writ Petition No. 7889 of 2022

2022-08-22

Ravindra V. Ghuge, Arun R. Pedneker

Mr. N.L. Choudhari for petitioner, Mr. Sudha Chintamani for respondent no.1, Mr. A.P. Bhandari for respondent nos. 2 and 3

Sandip Gorakh Naik

The Union of India, The Hindustan Petroleum Corporation Ltd., The Regional Office (Retail), HPCL, Nashik

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Nature of Litigation

Writ petition challenging rejection of application for allotment of retail outlet dealership.

Remedy Sought

Petitioner sought quashing of communications dated 6th October 2021 and 25th October 2021 rejecting his application and direction to consider his application afresh.

Filing Reason

The petitioner's application for retail outlet dealership was rejected without giving him an opportunity of hearing.

Issues

Whether the rejection of the petitioner's application for allotment of retail outlet dealership by the respondent without giving an opportunity of hearing is sustainable in law.

Submissions/Arguments

The petitioner argued that the rejection was arbitrary and violative of principles of natural justice as no opportunity of hearing was given before rejection.

Ratio Decidendi

The rejection of an application without affording an opportunity of hearing violates principles of natural justice. Before rejecting an application on the ground of non-submission of documents, the applicant must be given a chance to explain or comply.

Judgment Excerpts

By the present writ petition, the petitioner is challenging the communications dated 6th October, 2021 and 25th October, 2021 issued by respondent No. 3 – Head of the Regional Office (Retail), Hindustan Petroleum Corporation Ltd., Nashik, rejecting the application of the petitioner for allotment of retail outlet dealership of respondent No. 2 – Hindustan Petroleum Corporation Ltd.

Procedural History

The petitioner applied for retail outlet dealership in response to an advertisement dated 25.11.2018. After submitting documents, the respondent rejected the application by communications dated 6.10.2021 and 25.10.2021. The petitioner then filed the present writ petition challenging the rejection.

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