Case Note & Summary
The petitioners, Suresh Pralhad Pawar and Balasaheb Mahadeo Kshirsagar, filed writ petitions challenging the advertisement dated 27th July 2011 issued by the respondent oil companies for selection of LPG distributors, and also sought quashing of the April 2011 Guidelines. The petitioners argued that the guidelines and advertisement were arbitrary and contrary to settled principles governing distribution of public largesse. The respondents, including the Union of India, Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited, and Bharat Petroleum Corporation Limited, defended the guidelines as being based on objective criteria. The court, after hearing arguments, held that the guidelines provided for selection based on criteria such as land ownership and financial capacity, which have a clear nexus to the object of the grant. The court found no arbitrariness and dismissed both writ petitions, upholding the validity of the guidelines and the advertisement.
Headnote
A) Public Law - Distribution of Public Largesse - Selection Criteria - The court considered whether the April 2011 Guidelines and the advertisement dated 27th July 2011 for selection of LPG distributors were arbitrary. Held that the guidelines provided for objective criteria including land ownership and financial capacity, which have nexus to the object of the grant, and the challenge was without merit (Paras 1-2).
Issue of Consideration
Whether the April 2011 Guidelines and the advertisement dated 27th July 2011 for selection of LPG distributors are arbitrary and liable to be quashed.
Final Decision
Both writ petitions are dismissed. The challenge to the April 2011 Guidelines and the advertisement dated 27th July 2011 fails.
Law Points
- Public largesse distribution must be based on criteria having nexus to the object of the grant
- transparent procedure
- guidelines not arbitrary if based on objective criteria
- no vested right to be considered under superseded guidelines
