NARAYAN MALLICK Vs. UNION OF INDIA

JUDGEMENT

(1.) BY means of this writ petition the petitioner has challenged the action of opposite party No.2, the Hindustan Petroleum Corporation Limited in opening a new retail outlet of petrol and high speed diesel at Somanathpur, Kakatpur on the ground that the retail outlet / filling station of Indian Oil Corporation Limited of the petitioner is functioning in the same village. Opposite party No. 2 had submitted an application before the Collector, Puri (opposite party No. 3) for grant of no - objection certificate for opening a new retail outlet at Somanathpur, Kakatpur. It is alleged that the proposal to open the retail outlet is against the policy, norms and guidelines for the opening of new outlets by the Oil Companies.

(2.) THE petitioner applied to the Indian Oil Corporation to appoint him as a dealer for opening of a retail outlet of petrol and high speed diesel at Astarang and vide letter dated 2-7-1981 he was allowed to open the retail outlet for H. S. D. in that location and was running the same in the name of M/s. Marine Filling Station which was given to him under the rehabilitation category but the same was not viable on that place and was resisted at Somanathpur, Kakatpur where opposite party No.2 decided to open the new retail outlet. According to the norms and policy of the Oil Companies, no retail outlet can be opened within ten kilometer radius of the 'E' Class Market like Somanathpur, Kakatpur.

(3.) IN the counter affidavit filed on behalf of opposite party No. 2, Hindustan Petroleum Corporation Limited, it has been mentioned that the Government of India has laid down a new policy on 8th of March, 2002 in supersession of the earlier policy laid down in 1997 in which the Union Government has done away with the volume distance restrictions for encouraging investments in the refining sector thereby giving them marketing rights for transportation rules, i.e. M. S., H. S. D. and A. T. F. It has been further stated therein that after taking into account the recommendations in the report "India Hydrocarbon Vision - 2025", the Government of India decided to grant authorization to market transportation fuels, namely, M. S., H. S. D. and ATF to the new entrants including the private sector by setting forth certain guidelines. In Clause XII of the guidelines, it has been mentioned that the company seeking authorization to market transportation fuels will be required to make an application in the specified form accompanied by such fees, as may be specified, giving details of the scheme of marketing for which authorization is sought. There shall be no limit to the quantum and size of the scheme and the number and location of retail outlets in the scheme provided that no encroachments on the existing retail outlets will be allowed. Therefore, the only restriction is that there should be no encroachment under the scheme of the Oil Companies on the existing retail outlets. It appears that the petitioner has misinterpreted the definition of 'Low service area', which means an area not covered by National Highway / State Highway, and not having any retail outlet within 10 Kms or as may be notified by the Central Government from time to time. It does not mean that there is restriction to open a retail outlet within an area of 10 Kms. 'Low service area' has been defined because of the reason of improvement of the area, meaning thereby that if there is any retail outlet within 10 Kms in an area not covered by National Highway / State Highway, it cannot come within the 'low service area'. Further there is restriction in sub-clause (b) that the eligible company shall not operate with this authorization through a dealer with whom another marketing company has entered into an agreement for marketing of transportation fuel (s) or from the existing retail outlet of another company, meaning thereby that if any other marketing company had already entered into an agreement with a person for marketing of transportation fuels, the other eligible company would not make a contract with him for the same purpose either by making separate allotment of retail outlet or from the existing retail outlet of another marketing company. It does not mean there is restriction authorizing any other person as a dealer to open a retail outlet within 10 Kms of the existing outlet.