Non-Disclosure Leads to Cancellation of Petrol Pump Candidature: P&H HC

In a recent judgment delivered on November 21, 2023, the Punjab and Haryana High Court has upheld the rules governing the allotment of petrol pump stations in a case where the candidature of an applicant was canceled due to the non-disclosure of a 1 marla land abutting the road. The court’s decision highlights the importance of transparency and compliance with terms and conditions in such allotment processes.

The petitioner, Mr. Satish Kumar, had applied for the allotment of a petrol pump station and was initially selected in a draw of lots. However, a complaint lodged by another candidate, Praveen Kumar, alleged that Mr. Kumar had misdeclared particulars of the offered land. The respondent, Indian Oil Corporation Limited, conducted an inquiry and discovered that there was 1 marla land between Mr. Kumar’s land and the public road, which he had not disclosed in his application.

The court noted that the respondent was bound by the terms and conditions outlined in the brochure for the selection of dealers. Clause 21 of the brochure explicitly stated that the candidature of an applicant could be rejected if any statement made in the application or related documents was found to be incorrect.

In its observation, the court stated, “The respondent is bound by terms and conditions of the brochure. This Court cannot ask the respondent to allot petrol pump to petitioner when there are disputed questions of facts and there is no allegation of manifest arbitrariness and mala fide intention on the part of respondent.”

The judgment further emphasized the need for applicants to provide accurate and complete information in their applications for such allotments. The court found that Mr. Kumar had not disclosed the existence of the 1 marla land, which was crucial in determining the eligibility for the petrol pump allotment.

Ultimately, the court dismissed Mr. Kumar’s petition seeking to set aside the cancellation of his candidature, upholding the respondent’s rejection due to the non-disclosure of the 1 marla land. The judgment serves as a reminder of the importance of adhering to the terms and conditions set forth in such allotment processes.

Date of Decision: 21.11.2023

SATISH KUMAR  VS INDIAN OIL CORPORATION LIMITED AND ANOTHER