Case Note & Summary
The petitioner, Prashant S/o Gulabrao Kamble, was a LPG distributor of Indian Oil Corporation Limited. His distributorship was terminated by the respondent corporation. The petitioner challenged the termination order by filing a writ petition under Article 226 of the Constitution of India before the Bombay High Court, Aurangabad Bench. The petitioner contended that no show cause notice was served upon him prior to the termination, and thus the order was passed in gross violation of principles of natural justice. The respondent corporation argued that the show cause notice was sent by registered post and was returned unserved, and therefore the petitioner was deemed to have notice. The court examined the facts and found that the notice was not actually served on the petitioner. The court held that the principles of natural justice require that a person must be given an opportunity of hearing before any adverse order is passed. Since the show cause notice was not served, the termination order was quashed and set aside. The court directed the respondent to restore the distributorship and allow the petitioner to continue. The judgment was pronounced on 08.01.2019 by a division bench comprising Justice S.S. Shinde and Justice K.K. Sonawane.
Headnote
A) Administrative Law - Principles of Natural Justice - Show Cause Notice - Termination of Distributorship - The termination of LPG distributorship by Indian Oil Corporation Limited was set aside as the show cause notice was not served on the petitioner, violating principles of natural justice - Held that any order passed without giving an opportunity of hearing is unsustainable (Paras 5-8).
Issue of Consideration
Whether the termination of the petitioner's LPG distributorship by Indian Oil Corporation Limited without proper service of show cause notice and without affording an opportunity of hearing is violative of principles of natural justice.
Final Decision
The court allowed the writ petition, quashed the termination order, and directed the respondent to restore the petitioner's LPG distributorship.
Law Points
- Principles of Natural Justice
- Show Cause Notice
- Termination of Distributorship
- Writ of Certiorari
- Article 14
- Article 226
