Supreme Court Allows Appeal in LPG Distributorship Case Due to Delay and Laches — Writ Petition Filed After Four Years Dismissed. Division Bench's Reversal of Single Judge's Dismissal on Locus Standi Set Aside as Writ Petitioner Failed to Explain Inordinate Delay.

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Case Note & Summary

The case pertains to a challenge to the grant of LPG distributorship at Jamalpur, District Burdwan, under the GP Category. An advertisement was issued on 09.09.2012, and applications were invited. The appellant, Mrinmoy Maity, and the respondent No.1, Chhanda Koley, were among the eligible candidates. A draw of lots was held on 11.05.2013, and the appellant was selected. A letter of intent was issued on 24.02.2014, and approval was granted by BPCL on 03.06.2014. After four years, the respondent No.1 filed a complaint alleging that the land offered by the appellant was Barga land. The appellant offered alternate land, which was accepted by BPCL. The respondent No.1, being an unsuccessful candidate, filed a writ petition on 10.04.2017 challenging the approval. The Single Judge dismissed the writ petition on the ground of lack of locus standi, as the petitioner had participated in the selection process. The Division Bench reversed this decision, setting aside the allotment on the grounds that the land offered was in contravention of guidelines and that subsequent amendments could not be applied retrospectively. The Supreme Court allowed the appeal, holding that the writ petition ought to have been dismissed on the ground of delay and laches. The Court emphasized that delay defeats equity and that the writ petitioner had slept over her rights for four years, allowing the appellant to construct godown and showroom. The Court set aside the Division Bench's order and restored the Single Judge's dismissal, but did not rule on the merits of the guidelines violation.

Headnote

A) Constitutional Law - Writ Jurisdiction - Delay and Laches - Article 226 of the Constitution of India - The writ petition was filed after four years of the selection process and after the appellant had already been granted approval and had constructed godown and showroom on alternate land. The Supreme Court held that the High Court ought to have dismissed the writ petition on the ground of delay and laches alone, as the writ petitioner slept over her rights and allowed the cause of action to drift away. (Paras 9-12)

B) Administrative Law - Selection Process - Change of Rules - Guidelines for Selection of Regular LPG Distributors - Clause 7.1(vi) and (vii) - The Division Bench had set aside the allotment on the ground that the appellant's land was in contravention of guidelines and that subsequent amendment could not be applied retrospectively. However, the Supreme Court did not decide this issue as the writ petition was dismissed on delay and laches. (Paras 6, 9)

C) Constitutional Law - Locus Standi - Article 226 of the Constitution of India - The Single Judge had dismissed the writ petition on the ground that the writ petitioner had no locus standi as she participated in the selection process. The Supreme Court did not rule on this but noted that the Division Bench had reversed it. (Paras 6, 9)

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Issue of Consideration

Whether the writ court was justified in entertaining the writ petition filed by the respondent No.1 challenging the approval dated 03.06.2014 granted in favour of the appellant for starting LPG distributorship at Jamalpur, District Burdwan?

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Final Decision

Appeal allowed. Impugned order of Division Bench set aside. Writ petition dismissed on ground of delay and laches. No order as to costs.

Law Points

  • Delay defeats equity
  • Laches in writ jurisdiction
  • Discretionary power under Article 226
  • Change of rules after commencement of selection process
  • Retrospective application of guidelines
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Case Details

2024 LawText (SC) (04) 521

Civil Appeal No. 5027 of 2024 (@ SLP (C) No. 30152 of 2018)

2024-04-29

Aravind Kumar, J.

2024 INSC 314

Pijush K. Roy (Senior Counsel for appellant), Zoheb Hossain (for respondent No.1), Shekhar Naphade (Senior Counsel for Corporation)

Mrinmoy Maity

Chhanda Koley and Others

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Nature of Litigation

Civil appeal against Division Bench order setting aside allotment of LPG distributorship.

Remedy Sought

Appellant sought setting aside of Division Bench order and restoration of Single Judge's dismissal of writ petition.

Filing Reason

Respondent No.1, an unsuccessful candidate, challenged the approval of LPG distributorship granted to appellant after four years.

Previous Decisions

Single Judge dismissed writ petition on ground of lack of locus standi; Division Bench reversed and set aside allotment.

Issues

Whether the writ court was justified in entertaining the writ petition filed after four years challenging the approval of LPG distributorship? Whether the Division Bench erred in ignoring the delay and laches on the part of the writ petitioner?

Submissions/Arguments

Appellant argued that writ petition was barred by delay and laches, and Single Judge rightly dismissed it on locus standi. Respondent No.1 argued that violation of guidelines went to root of matter and delay should be ignored. Corporation submitted that appellant had been successful in draw of lots and alternate land was accepted as per subsequent notification.

Ratio Decidendi

Delay and laches is a valid ground for dismissing a writ petition under Article 226 of the Constitution of India. A writ petitioner who sleeps over his rights for a considerable period and allows the cause of action to drift away cannot be granted extraordinary relief. The High Court must consider delay and laches even if fundamental rights are involved.

Judgment Excerpts

Delay defeats equity. If it is found that the writ petitioner is guilty of delay and laches, the High Court ought to dismiss the petition on that sole ground itself. The writ courts are not to indulge in permitting such indolent litigant to take advantage of his own wrong.

Procedural History

Advertisement issued on 09.09.2012. Draw of lots on 11.05.2013. Letter of intent on 24.02.2014. Approval on 03.06.2014. Complaint by respondent No.1 in 2017. Writ petition filed on 10.04.2017. Single Judge dismissed on 18.01.2018. Division Bench allowed appeal on 30.01.2018. Supreme Court granted leave and allowed appeal on 29.04.2024.

Acts & Sections

  • Constitution of India: Article 226, Article 32, Article 227, Article 136
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