An Advertisement Constitutes a Representation to the Public, the Issuing Authority Must Adhere to its Terms: Supreme Court Reinstates Candidature for HPCL LPG Distributorship

The Supreme Court of India, in a recent judgment, has set aside the High Court’s decision in the matter of Tapas Kumar Das versus Hindustan Petroleum Corporation Limited (HPCL), emphasizing the binding nature of advertisement terms on the issuing authority.

The apex court delved into the interpretation of 'location' in HPCL’s LPG distributorship advertisement, scrutinizing whether the land offered by Mr. Tapas Kumar Das in mouza Gopinagar fell within the specified 'location' under the Unified Guidelines for Selection of LPG Distributorships.

The controversy arose from the disqualification of Mr. Das’s candidature for an LPG distributorship in Haripal, Hooghly district, due to the location of the proposed showroom. The primary contention was whether the appellant's land, located in mouza Gopinagar within Haripal Block, met the eligibility criteria set out in the advertisement.

The Court meticulously analyzed the advertisement’s terms, especially focusing on 'location', 'block', and 'Rurban' market type. It emphasized the principle that “an advertisement constitutes a representation to the public, and the issuing authority must adhere to its terms,” underlining the significance of clear and unambiguous communication in public advertisements. The Court concluded that the land offered by the appellant was within the acceptable limits of the 'location' specified in the advertisement, thus complying with the Unified Guidelines.

Decision  Overturning the High Court's verdict, the Supreme Court restored the Single Judge's order, thereby reinstating Mr. Tapas Kumar Das's eligibility for the LPG distributorship under HPCL.

Date of Decision: 19th March 2024

Tapas Kumar Das Versus Hindustan Petroleum Corporation Limited & Ors