- (1.) The writ petition is made by a partnership firm being Petitioner No. 1 therein as well as one of the partner of the said firm being the Petitioner No. 2. According to the petitioner, the firm deals with the business of a kerosene oil is an agent of Indian Oil Corporation Ltd. It is described as dealer in the relevant agreement. Initially the Petitioner No. 1 firm was a proprietor concern. The said concern obtained two licences from Directorate of Consumer Goods, Government of West Bengal having its office at 11, Mirza Galib Street, Calcutta - 700 071. One of such licences was issued for Fort Williams within the district of Calcutta and other licence was issued from Bakrahat within the district of 24 Parganas (South). In 1972, the Indian Oil Corporation Ltd. (hereinafter called as IOC), Respondent No. 2 herein, requested the licensing authority to endorse certain areas in the petitioner's licence and accordingly the same was done.
(2.) In 1975, IOC allowed the Petitioner No. 1 to open storage point at Jadavpur in Calcutta and Joynagar in 24 Parganas (South) for storing and distribution of kerosene oil within the area or operation as per the request of the Petitioner No. 1. Pursuant to such grant the petitioners obtained the required licence from the concerned authority in respect of Jadavpur and from the District Magistrate in case of Joynagar. Subsequently, the Petitioner No. 1 firm was reconstituted and become the partnership by execution of a deed of partnership on 18th of August, 1978. Thereafter, by a letter dated 15th April, 1980 the reconstituted firm was approved by the IOC. The amendment of licence accordingly made and given in 1984. In the licence apart from the Joynagar and Jadavpur areas other areas were also endorsed. By a circular dated 3rd/4th May, 1989, the Ministry of Petroleum and Natural Gas, Government of India proposed for regularisation of SKO - LDO dealership. It was, inter alia , suggested that the dealers doing such business without agreement, be considered for regularisation on merits of the case. Based on such circular IOC fixed the cut off date on 23rd September, 1977. It was decided by IOC that the agreement for locations which have been attached to the dealers either on permanent basis or on temporary basis and not covered in the dealership agreement, if having full-fledged establishments with all facilities including storage facilities, should be signed separately in respect of each location.
(3.) On 16th April, 1991, an agreement was executed by or between the petitioners and IOC. By the said agreement the petitioners were directed to operate in various areas including Jadavpur and Joynagar in terms of the proposal dated 3rd/4th May, 1989 as aforesaid. Two separate agreements were executed on 23rd November, 1992. One agreement was made for Fort William in the district of Calcutta and other was made for Bakrahat areas of 24 Parganas (South). The petitioners made prayers for execution of two separate agreements for Jadavpur and Joynagar which were forwarded by the IOC to the head office with their negative notes. During the pendency of execution of separate agreements the petitioners' firm was favoured with separate allocation for Jadavpur and Joynagar points in addition to the existing points at Fort William and Bakrahat. Such allocations were in favour of the petitioners because of the fact that similarly placed dealers were favoured with the allocation for different points. On 9th April, 1997 the petitioners informed the licensing authority about receipt of 12 KL of S.K. Oil for Jadavpur joint with a request to open new registers to record the same. On 21st of April, 1997 a clarification was sought for by the licensing authority as to who advised, the petitioners' to lift kerosene oil for Jadavpur. However, on 9th May, 1997 the petitioners were allowed to sell the stock by the advice of the Chief Inspector of licensing authority. By another memo dated 24th/27th October, 1997 the licensing authority, directed, the petitioners to submit the agreement with the IOC for the new points i.e. Joynagar and Jadavpur area. By further memorandum dated 19th November, 1997, the licensing authority asked the IOC to supply the SK Oil at Jadavpur and Joynagar points will be made in the interest of the public distribution system subject to the condition that the petitioners enter into fresh agreement for additional point of supply. On 2nd January, 1998 the licensing authority informed IOC that the petitioners have been issued valid selling licence of kerosene oil with other required documents to conduct business. Accordingly, IOC released the separate allocation in favour of the petitioners by a letter dated 7th of January, 1998. The petitioners contended that since the separate dealership agreements for Jadavpur and Joynagar were not executed, the IOC included them for the time being the said areas in the agreements dated 23rd November, 1992 by an order dated 26th February, 1998, keeping in view that petitioners are already operating in the said areas by virtue of the earlier licence, since issued way back in the year 1972 and also the agreement executed in 1991. Petitioners have been given to understand in 1998 that the head office of IOC has already been approved execution of two separate agreements for Jadavpur and Joynagar in addition to existing agreement of the petitioners. But IOC has deliberately kept the matter pending for unknown reason. The licencing authority under memorandum dated 5th of November, 1998 once directed the petitioners to inform whether the agreements for Jadavpur and Joynagar points as per the order of the Director of Consumer Goods, West Bengal, has been executed or not. Petitioners, further, contended that they are continuing Bakrahat including Joynagar by virtue of one licence which was deposited for renewal for the year 2000 on 3rd December, 1999 with the authority against a valid token issued by them. So far as the another licence for Fort William and Jadavpur are concerned the same were put under suspension for a certain period because of the shifting of the place of the business and subsequently taken deposit for renewal for the year 2000 against a valid token.;