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* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Reserved on: 24th November, 2021
Pronounced on: 10th January, 2022
+ LPA 24/2021& CM APPL. 1843/2021(stay)
INDIAN OIL CORPORATION LIMITED
AND OTHERS ..... Appellants
Through: Mr. Tushar Mehta, Solicitor General
with Mr. Parijat Sinha, Mr. Rudra Dutta,
Mrs. Sanyukta Gupta and Mr. Akhil Tewatia,
Advocates
Versus
ALL INDIA PETROLEUM DEALERS ASSOCIATION
REGISTERED AND OTHERS ..... Respondents
Through: Mr. S. B. Upadhyay, Senior Advocate
with Mr. Rajesh Mahale, Advocate for
Respondents No.1 and 2.
Mr.Ripudaman Bhardwaj, Central Government
Standing Counsel with Mr.Kushagra Kumar,
Advocate for Respondent No.3.
Mr. Siddharth Luthra, Senior Advocate with
Mr. G. Sivabala Murgan, Advocate for Intervener.
Dr.Pabitra Pal Chowdhury and Mr. Kumar
Utkarsh, Advocates for Intervener, i.e. North
Bengal Petroleum Dealers Association.
+ LPA 30/2021& CM APPL. 2389/2021 (stay)
INDIAN OIL CORPORATION
LIMITED AND OTHERS ..... Appellants
Through: Mr. Tushar Mehta, Solicitor General
with Mr. Parijat Sinha, Mr. Rudra Dutta,
LPA 24/2021 & connected matters Page 1 of 82
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Mrs. Sanyukta Gupta and Mr. Akhil Tewatia,
Advocates
Versus
ALL HARYANA PETROLEUM DEALERS ASSOCIATION
REGISTERED AND OTHERS ..... Respondents
Through: Mr. Ripudaman Bhardwaj, Central
Government Standing Counsel with Mr.Kushagra
Kumar, Advocates for Respondent No.3.
+ LPA 31/2021& CM APPL. 2392/2021 & 12432/2021
INDIAN OIL CORPORATION
LIMITED AND OTHERS ..... Appellants
Through: Mr. Tushar Mehta, Solicitor General
with Mr. Parijat Sinha, Mr. Rudra Dutta,
Mrs. Sanyukta Gupta and Mr. Akhil Tewatia,
Advocates
Versus
BIHAR PETROLEUM DEALERS ASSOCIATION
AND ANOTHER ..... Respondents
Through: Mr. Sanjoy Ghose, Senior Advocate
with Mr. Anuj Aggarwal and Mr.Kumar Utkarsh,
Advocates for Respondent No.1.
Mr. Ripudaman Bhardwaj, Central Government
Standing Counsel with Mr.Kushagra Kumar,
Advocates for Respondent No.3.
Mr. Narender Hooda, Senior Advocate with
Mr. Shanth Kumar V. Mahale, Advocate for
Interveners.
CORAM:
HON’BLE THE CHIEF JUSTICE
HON’BLE MS. JUSTICE JYOTI SINGH
LPA 24/2021 & connected matters Page 2 of 82
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TABLE OF CONTENTS
S. NO. CONTENTS PARA
I. SUMMARIUM 1
II.
FACTUAL MATRIX 2
III. ARGUMENTS CANVASSED BY LEARNED SOLICITOR
GENERAL APPEARING ON BEHALF OF THE 11
APPELLANTS IN ALL THE THREE LETTERS PATENT
APPEALS
IV. ARGUMENTS CANVASSED ON BEHALF OF 25
RESPONDENT NO.1 AND 2 (ORIGINAL PETITIONERS)
IN ALL THE THREE APPEALS
V. ARGUMENTS CANVASSED BY THE INTERVENORS 32
VI. REASONS AND ANALYSIS 37
VI A. CLAUSE 43 OF THE DEALERSHIP AGREEMENT 38
VI B. CLAUSE 1.5 –OBSERVANCE OF STATUTORY AND 52
OTHER REGULATIONS
VI C. CLAUSE 5.1.2–SHORT DELIVERY OF PRODUCTS 61
VI D. CLAUSE 5.1.18–PAYMENT OF WAGES 67
VI E.
CLAUSE 8.3 – MAJOR IRREGULARITIES 71
VI F. CLAUSE 5.1.14(b) – NON-PROVISION OF CLEAN 83
TOILET FACILITY
VII. CONCLUSION 86
LPA 24/2021 & connected matters Page 3 of 82
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JUDGMENT
: Per D. N. PATEL, Chief Justice
I. SUMMARIUM
1. Being aggrieved and feeling dissatisfied by the common judgment
and order of the learned Single Judge passed in W.P.(C) No.10334/2017,
W.P.(C) No.10746/2017 and W.P.(C) No.11246/2017 dated 18.03.2020,
Appellants have preferred the present Letters Patent Appeals. Appellants,
herein, were Respondents No.2 to 4 respectively, in the writ Petitions. For
the sake of convenience, parties are being referred to hereinafter, by their
litigating status before this Court. The prime ground for challenge in the
present Appeals, inter alia, is that by the impugned judgement, the affect of
Amendment, notified in the year 2017, amending the Marketing Discipline
Guidelines, 2012 (hereinafter referred to as “MDGs” for the sake of
brevity), has been invalidated and nullified.
II. FACTUAL MATRIX
2. Appellants herein, being Oil Marketing Companies (hereinafter
referred to as “OMCs”), in the year 1981-82, for the first time, formulated
and issued the MDGs, for maintaining market discipline and uniformity in
action for operating the network of Petrol and Diesel Retail Outlets
(hereinafter referred to as “ROs”) under the OMCs.
3. The MDGs were reviewed and amended from time to time, in view of
changing circumstances as well as to set high customer service benchmarks
for the OMCs as also the Dealers’ network.
4. The MDGs were reviewed and amended again in the year 2012 and
MDG-2012 were issued and made effective from 08.01.2013.
LPA 24/2021 & connected matters Page 4 of 82
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