MOGA PERIPHERY PUMP ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner through instant petition under Article 226 of the Constitution of India is seeking setting aside of advertisement dtd. 28/6/2023 (Annexure P-7) whereby respondents have invited applications for 60 additional petrol pumps in the District Moga.

(2.) The petitioner is an Association of petrol pump dealers. The members of the Association are having petrol pumps within District Moga. The respondents by impugned advertisement have invited applications for setting up 60 additional petrol pumps in the District Moga. The grievance of the petitioner is that no additional petrol pump should be set up within jurisdiction of Moga because existing petrol pumps are sufficient to cater need of the consumers.

(3.) Mr. Chetan Mittal, Sr. Advocate submits that as per contract executed between Oil Companies and existing petrol pump dealers, a dealer is required to achieve minimum turn over of 350 KL of Motor Spirit and High Speed Diesel (for short 'MS and HSD'). There are 141 petrol pumps in District Moga and average turn over of these petrol pumps is 92 KL per month which is much lower than minimum prescribed limit. If 60 new petrol pumps are set up within District Moga, the turn over of every dealer would substantially reduce and no petrol pump would be financially viable. It would lead to malpractices and unethical competition. The respondents have advertised sites which are in the close proximity of existing petrol pumps. The setting up of these petrol pumps would be in violation of guidelines of Ministry of Road Transportation and Highways (for short 'MORTH') and further guidelines laid down by Central Pollution Control Board (for short 'CPCB'). Different High Courts have already held that guidelines issued by CPCB are binding in nature and no petrol pump can be set up in violation of these guidelines. The Oil Companies since 2017 have not revised commission payable to dealers, thus, if turn over reduces, the average income of every petrol pump would abysmally reduce and their financial condition would turn dilapidated. As per report of Oil Companies, the minimum expected turn over of every petrol pump is 170 KL whereas petitioners are unable to achieve even 100 KL. The act of respondents amounts to violation of Articles 14 and 19 (1) (g) of the Constitution of India.