ALL INDIA L P DISTRIBUTORS FEDERATION Vs. UNION OF INDIA
LAWS(P&H)-2001-12-6
HIGH COURT OF PUNJAB AND HARYANA
Decided on December 21,2001

ALL INDIA L.P.DISTRIBUTORS FEDERATION Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

JAWAHAR LAL GUPTA, J. - (1.) Are the instructions issued by the Government of India vide letters dated 17/09/2001 and 18/10/2001 by which the Public Sector Oil Marketing Companies have been directed to close down the extension counters set-up by the dealers and "transfer all the consumers enrolled through these counters to the newly-commissioned distributors",arbitrary,illegalandviolativeoftheprinciplesofnaturaljustice?Thisistheshortquestionthatarisesinthispetition.Thefactsmaybebrieflynoticed.
(2.) The four Oil Companies viz. the Indian Oil Corporation and others have appointed distributors for the sale of Liquefied Petroleum Gas. There are more than 300 distributors in the North-West region. They are the members of the Petitioner-Federation.
(3.) The oil Companies allot distributorship to persons belonging to the categories of Ex-servicemen, War Widows, unemployed Engineers /Graduates, Freedom-fighters, members of Scheduled Castes and Tribes and disabled Army Personnel etc. Each dealser is allotted an area of operation. Even the number of refills which can be supplied by the dealer is regulated by the Company. Ceiling limits on the number of refills have been periodically imposed by the Government of India. To illustrate vide letter dated 21/04/1995, the cieling limit was revised and raised to 5000 refills per month for a town having population upto 10 lacs. On 10/03/2000, the limit was raised to 8000.;


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