LexCOMMON CAUSE,REGISTERED SOCIETY versus UNION OF INDIA AND OTHERS
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COMMON CAUSE, A REGISTERED SOCIETY v. UNION OF INDIA AND OTHERS SEPTEMBER 25, 1996 [KULDIP SINGH AND FAIZAN UDDIN, JJ.] Constitution of India-A1ticles 14, 32 and 298-Ministei~A/lotment of retail outlets for petroleum products (Petrol Pumps) under discretionary quota-All the allotments made in favour of persons related to politicians/members of Oil Selection Boards/Officials in the Minisll)~Allot ments made in a cloistered and stereotyped manner without any guidelines or critelia-Held, arbitra1y, disC1iminat01y, malafide and illegal-Exercise of dis- cretion must be transparent, just, fair and non-arbitrwy in accordance with A B c set no11113~ clitelia or guideline3~Minister holds position of a tntstee of public prope1ty in his charge and discretion-Arbitra1y allotments of such property D amount to breach of llust-Hence, liable to be set aside-Directions issued. Constitution of lndia-A1ticle 14-Allotments of petrol pumps by a Minister under his discretiona1y quota in an arbitrary mannel'--No guidelines fol/owed-Held, A1ticle 14 pennits a reasonable classification having a ration- al nexus to the object sought to be achieved-It does not pennit to pick and E choose arbitralily out of several persons failing in the categ01y. Public Servant-Discharge of ftmctions-Malafide acts-Personal liability of-Held, is in a position of a tmstce in respect of public prope1ty under his charge and discretion-Must distlibute ill a bonafide manner and in con[ ormity with law-Should be held personally responsible for his F malafide acts in the discharge of his ftmctions as Public Se1vant for he betrays the tntst reposed in him by the people under the Constitution. The then Minister of State for Petroleum and Natural Gas, while exercising the powers of the Central Government made the allotments of G retail outlets for petroleum products (petrol pumps) to fifteen persons under the discretionary quota. Two of the allottees were the sons of politicians and seven of the allottees were related to the members of Oil Selection Boards (OSBs) or the members themselves and remaining six allottees were the relatives of H 719 720 SUPREME COURT REPORTS (1996) SUPP. 6 S.C.R. A the officials in the Petroleum Ministry. All the fifteen allottees mentioned in their applications for the allotment th.e reasons for compassionate grounds for allotment, such as unemployment, poverty etc. among other grounds. There was no advertisement issued to invite the applications. The applications were not received officially by the Ministry. There was no B receipt entry on any of the applications. Nobody had the knowledge of number of petrol pumps available for allotment. l'!o criteria was fixed, no guidelines were kept in view. The applicants seemed to have approached the Minister directly. The petitioner had originally challenged the corruption in various C fields of public life in a public interest petition. During its pendency, when the petitioner brought to the notice of the court a news item appeared in a national daily regarding the allotments of retail outlets for petroleum products (petrol pumps) by the Minister of State for Petroleum and Natural Gas, exercising the powers of Central Government, the Court took D cognisance of it and a notice was issued on the petition. Disposing of the writ petition, this Court HELD : 1.1. The orders allotting the petrol pumps to fifteen persons are quashed. Allocation and allotment of petrol pumps/retail outlets E dealerships by the Government of India, Indian Oil Corporation Ltd. or any other Corporation in their names shall stand cancelled with immediate effect .. · Those who have commissioned the petrol pumps and are running · the same shall stop operating the petrol pumps and running the said business. The Government of India/Oil Corporation (concerned) shall take F over the petrol pump premises from these persons. The Oil Corporation shall have the market value of the site and the construction thereon, determined in a fair and just manner. Each of the commissioned petrol pumps so taken over shall be disposed of by way of public auction. The original allottee may also participate in the auction. The petrol pump shall G be allotted to the highest bidder. Out of the auction money the value of the site and the construction as determined by the Oil Corporation shall be paid to the original allottee ·and the remaining money shall go to the Government coffer. Pros
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