Bombay High Court Allows Petition Challenging Cancellation of Selection for Retail Outlet Dealership Due to Violation of Natural Justice. Cancellation of Selection Without Show Cause Notice Set Aside, Matter Remitted for Fresh Consideration After Hearing.

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

The petitioner, Mrs. Seema Raju Pol, filed a writ petition before the Bombay High Court, Aurangabad Bench, challenging the cancellation of her selection for an MS/HSD retail outlet dealership by Bharat Petroleum Corporation Ltd. The respondent corporation had issued an advertisement on 13th March 2012 inviting applications for a retail outlet at Lasur Station to Sultanabad new Mumbai Highway, reserved for the 'Open category for Woman'. The petitioner applied, and after document verification, spot verification of the proposed site, and an interview on 26th October 2012, she was found suitable. However, by an order dated 6th July 2013, the respondents cancelled her selection without any show cause notice or opportunity of hearing. The petitioner contended that the cancellation was arbitrary and violative of principles of natural justice. The respondents argued that the cancellation was based on some discrepancies but did not provide details. The court, after hearing both sides, observed that the impugned action was taken without affording any opportunity of hearing to the petitioner, which is a clear violation of the principles of natural justice. The court set aside the cancellation order and directed the respondents to consider the petitioner's case afresh after giving her a reasonable opportunity of hearing, including the right to file a reply and be heard. The petition was allowed with no order as to costs.

Headnote

A) Administrative Law - Natural Justice - Audi Alteram Partem - Cancellation of Selection Without Notice - The respondent corporation cancelled the petitioner's selection for retail outlet dealership without any show cause notice or opportunity of hearing, despite the petitioner having been found suitable after interview and site verification. The court held that such cancellation without affording an opportunity of hearing is violative of principles of natural justice and cannot be sustained. (Paras 1-6)

B) Petroleum Laws - Retail Outlet Dealership - Selection Process - Cancellation - The petitioner was selected for MS/HSD retail outlet dealership after advertisement, application, site verification, and interview. The cancellation letter dated 6th July 2013 did not disclose any reason. The court held that the impugned action is arbitrary and set aside the cancellation, directing the respondents to consider the petitioner's case afresh after giving an opportunity of hearing. (Paras 2-6)

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Issue of Consideration

Whether the cancellation of the petitioner's selection for MS/HSD retail outlet dealership without issuing a show cause notice or providing an opportunity of hearing is sustainable in law.

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Final Decision

The petition is allowed. The impugned order dated 6th July 2013 is quashed and set aside. The respondents are directed to consider the petitioner's case afresh after giving her a reasonable opportunity of hearing, including the right to file a reply and be heard. Rule made absolute accordingly. No order as to costs.

Law Points

  • Natural Justice
  • Audi Alteram Partem
  • Cancellation of Selection Without Notice
  • Administrative Action
  • Reasoned Order
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Case Details

2016 LawText (BOM) (03) 14

WRIT PETITION NO.6744 OF 2013

2016-03-09

S.S. Shinde, V.L. Achliya

Mr. Shedge Ranjit A. (for Petitioner), Mr. Sanket S. Kulkarni (for Respondents)

Mrs. Seema Raju Pol

Bharat Petroleum Corporation Ltd. & Anr.

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Nature of Litigation

Writ petition challenging cancellation of selection for retail outlet dealership.

Remedy Sought

Petitioner sought quashing of cancellation order dated 6th July 2013 and direction to restore her selection.

Filing Reason

Cancellation of petitioner's selection without any show cause notice or opportunity of hearing.

Issues

Whether the cancellation of selection without show cause notice is violative of natural justice.

Submissions/Arguments

Petitioner argued that cancellation was arbitrary and without notice. Respondents contended that cancellation was based on discrepancies but did not provide details.

Ratio Decidendi

Any administrative action that cancels a selection without affording an opportunity of hearing to the affected party is violative of the principles of natural justice and cannot be sustained.

Judgment Excerpts

This petition has been filed being aggrieved by the impugned action of the respondents dated 6th July, 2013 of cancellation of the selection of the petitioner for MS/HSD retail outlet dealership. The impugned action of the respondents in cancelling the selection of the petitioner without issuing any show cause notice or without affording any opportunity of hearing to the petitioner is violative of principles of natural justice.

Procedural History

The petitioner applied for retail outlet dealership pursuant to advertisement dated 13th March 2012. After verification and interview, she was selected. On 6th July 2013, the respondents cancelled her selection without notice. The petitioner filed the present writ petition challenging the cancellation.

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