As per case facts, the petitioner, selected for an LPG distributorship, faced cancellation of his candidature. This was due to issues with the lease deed for the showroom and godown, ...
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.24190 of 2018
======================================================
Rakesh Kumar Son of Sri Ram Lal Ram Resident of Village Alampur, P.O.
Alampur Via Takia Bazar, Ward No. 05, Panchayat Alampur P.S. Sheosagar
District- Rohtas PIN code 821113 presently residing at Town and P.S.
Sasaram, District- Rohtas at Sasaram.
... ... Petitioner/s
Versus
1.The Indian Oil Corporation Having its Registered Office at, G-9, Ali Yavar
Jung Marg, Bandra (East), Mumbai- 400051.
2.The Indian Oil Corporation Ltd Through its General Manager Marketing
(LPG Sales) 5th Floor, Lok Nayak Jaiprakash Bhawan, Dak Bunglow Chauk
Fraser Road, Patna- 800001.
3.The Deputy General Manager (LPG-S) Indian Oil Corporation Ltd,. Indane
Area Office, Shahi Bhawan, Exhibition Road, Patna 800001.
4.The Assistant Manager (LPG-OPS) Patna BP (Field Verification
Committee), Indian Oil Corporation Ltd,. Shahi Bhawan, Exhibition Road,
Patna.
5.The Assistant Manager Indian Oil Corporation Ltd,. Patna Bottling Plant, at
and P.O.- Gidha, District- Bhojpur PIN 802314.
6.Sri Arun Kumar Son of Sudama Singh Resident of Alampur, P.S.- Sheosagar,
District- Rohtas.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s: M/s Amit Kumar Malik,
Shiw Kumar Prabhakar, Advocates
For the Respondent/s: Mr. Amlesh Kumar Varma, Advocate
======================================================
CORAM: HONOURABLE JUSTICE SMT. G. ANUPAMA CHAKRAVARTHY
ORAL JUDGMENT
Date : 03-07-2026
1. The petitioner has filed the instant
application for the following relief(s):
“i. For issuance of an appropriate Writ /
order for setting aside the letter bearing
Ref.No.PAT/LPG/Alampur dt. 23.11.2018
issued by the Dy. General Manager
(LPG-S) Indane Area Office, Patna,
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
2/19
whereby the allotment of the
distributorship of LPG in village Alampur
in Rohtas District vide Ref. No.
IOC0231213415072017 dt.31.1.2018 to
the petitioner has been cancelled and
application fees of Rs. 40000/- has been
forfeited;
ii. For setting aside the decision to draw
fresh lottery for the distributorship at
Alampur along with other places on
28.11.2018 as published in the
newspaper dt. 25.11.2018;
iii. For setting aside the selection for
Indane LPG distributorship to another
person namely one Arun Kumar son of
Sudama Singh at Alampur in place of
the petitioner vide letter of selection dt
30.11.18
iv. For issuance of an appropriate Writ /
order for stay of the grant of
distributorship at Alampur to any other
person than the petitioner during the
pendency of the present petition;
v. For directing the Respondents to
confirm the allotment of the
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
3/19
distributorship to the petitioner vide
letter dt. 31.1.2018 and grant the
dealership of Indane LPG to the
petitioner at village Alampur;
vi. For grant of any other relief to which
the petitioner may be entitled to in law.”
2. The brief facts culled out of the Writ
petition is that pursuant to the advertisement
dated 17/18.06.2017 issued by the Indian Oil
Corporation Limited (hereinafter referred to as "the
Corporation") for appointment of LPG Distributors,
the petitioner submitted his online application on
15.07.2017, for grant of LPG distributorship at
Alampur under Sheosagar Police Station in the
district of Rohtas. His application was
acknowledged under Reference No.
IOC0231213415072017.
3. It is submitted that upon scrutiny of the
applications and draw of lots, the petitioner was
declared successful and was issued a Letter of
Selection dated 31.01.2018, requiring him to
deposit a sum of Rs.40,000/- and to submit the
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
4/19
requisite documents for Field Verification of
Credentials (for short "FVC"). It is submitted that
the petitioner duly deposited the prescribed
amount on 05.02.2018 and furnished all the
documents as required under the Unified
Guidelines for Selection of LPG Distributors.
4. The Learned counsel submits that during
the course of field verification, the Corporation,
vide letter dated 27.03.2018, informed the
petitioner that the lease deed offered for the
showroom and godown had been executed after
the last date prescribed for submission of
applications and, therefore, did not satisfy the
eligibility criteria. The petitioner was, however,
granted an opportunity to furnish an alternate
parcel of land within seven days. Availing of the
said opportunity, the petitioner offered alternate
land bearing Khata No. 477, Khesra No. 341,
measuring 97 decimals, belonging to his father,
and submitted all supporting documents including
affidavits executed by his father, genealogical
records, no-objection affidavits of the co-sharers,
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
5/19
Land Possession Certificate (for short "LPC"),
revenue receipts and other relevant documents.
5. It is contended that the only issue which
arose during verification pertained to the variation
in the name of the petitioner's father. According to
the petitioner, after the death of his mother's first
husband, namely Naresh Dusadh, she married his
younger brother Suresh Ram, and consequently his
father came to be known by different names,
namely Ranglal Dusadh, Ram Lal Ram and Ranglal
Paswan. The petitioner asserts that the said
variation was fully explained through affidavits,
genealogical table and other documentary
evidence submitted before the Corporation. It is
further submitted that the officials of the Field
Verification Committee duly verified the documents
so produced.
6. The Learned counsel further submits
that the Corporation repeatedly sought clarification
from the Circle Officer, Sheosagar, regarding the
ownership of the land and the entries contained in
Register-II, the Land Possession Certificate and the
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
6/19
revenue records. The Circle Officer, by
communications dated 30.06.2018, 24.08.2018
and 25.10.2018, clarified that the discrepancies
noticed in the earlier revenue records were merely
clerical in nature and certified that the land stood
recorded in the names of Ranglal and Suresh. It is
also submitted that the concerned Revenue Clerk
specifically reported that omission of one of the co-
sharers from the earlier revenue receipt had
occurred due to clerical inadvertence and certified
the correctness of both the sets of revenue
records.
7. It is the specific submission of the
Learned counsel that in terms of Appendix-4 of the
Unified Guidelines, all the joint owners of the land
had duly executed the prescribed affidavits in
support of the petitioner's candidature and,
therefore, there remained no legal infirmity in the
land offered by the petitioner.
8. It is contended that despite repeated
clarifications furnished by the competent revenue
authorities, the Corporation adopted a hyper-
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
7/19
technical approach by ignoring the official records
and persisted with unwarranted objections
regarding the identity of the landowner. According
to the petitioner, the concerned Assistant Manager
unnecessarily delayed the matter, compelling the
petitioner to submit a representation before the
General Manager (LPG), Bihar requesting personal
consideration of his grievance.
9. The Learned counsel submits that
without considering the aforesaid representation
and without affording the petitioner any effective
opportunity of hearing, the Corporation abruptly
cancelled his candidature vide letter dated
23.11.2018, forfeited the security deposit of
Rs.40,000/- and concluded that the petitioner had
failed to establish his eligibility in respect of the
alternate land offered by him. It is argued that
once the competent revenue authorities had
repeatedly authenticated the ownership and
possession of the land and had explained the
discrepancies in the revenue records, the
Corporation was not justified in discarding such
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
8/19
official communications and rejecting the
candidature merely on surmises and conjectures.
10. It is further submitted that immediately
after cancelling the petitioner's candidature, the
Corporation published a fresh notification in the
newspaper 'Hindustan' dated 25.11.2018 fixing
28.11.2018 for a fresh draw of lots for the same
location and, with unusual haste, proceeded to
select another candidate, namely Arun Kumar
(respondent No. 6), vide letter dated 30.11.2018.
According to the Learned counsel, the entire
exercise was undertaken in undue haste, thereby
depriving the petitioner of an effective opportunity
to seek redressal of his grievance. It is, therefore,
contended that the impugned order dated
23.11.2018 cancelling the petitioner's candidature,
forfeiting the security deposit and proceeding with
a fresh selection process is arbitrary,
unreasonable, violative of the principles of natural
justice and liable to be quashed, with a
consequential direction upon the Corporation to
restore the petitioner's selection and grant the LPG
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
9/19
distributorship in accordance with law.
11. A detailed counter affidavit was filed
on behalf of the respondent Indian Oil Corporation
Limited. The Learned counsel appearing on behalf
of the respondent–Indian Oil Corporation Limited
referring to the counter affidavit, opposed the Writ
petition and submitted that the impugned action of
the Corporation is strictly in accordance with the
Unified Guidelines for Selection of LPG Distributors,
2017 and does not suffer from any illegality,
arbitrariness or procedural infirmity warranting
interference under Article 226 of the Constitution
of India.
12. It is submitted that pursuant to the
advertisement, the petitioner had applied for LPG
distributorship at Alampur and, upon being
declared successful in the draw of lots, was issued
a Letter of Selection dated 31.01.2018, which was
expressly made subject to successful Field
Verification of Credentials. During verification, it
was found that the lease deed initially offered by
the petitioner for the showroom and godown had
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
10/19
been executed on 03.02.2018, i.e., after the last
date prescribed for submission of the application.
Since the land did not satisfy the eligibility criteria
under the Guidelines, the Corporation, by way of
abundant fairness, afforded the petitioner an
opportunity to furnish alternate land which
satisfied the eligibility conditions as on the cut-off
date.
13. The Learned counsel submits that the
alternate land offered by the petitioner, bearing
Khata No. 477, Khesra No. 341, also failed to
satisfy the eligibility criteria. According to the Land
Possession Certificate dated 27.03.2018 and the
corresponding revenue receipt, the raiyat of the
land was one Shri Ranglal Dusadh, whereas in the
petitioner's application form, Aadhaar Card, PAN
Card, Secondary School Certificate, caste
certificate and other identity documents, the name
of his father was consistently recorded as Ram Lal
Ram. Although the petitioner sought to explain the
discrepancy by producing affidavits and a
genealogical table stating that Ranglal Dusadh and
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
11/19
Ram Lal Ram were one and the same person, the
Corporation found that no reliable corroborative
evidence had been produced to substantiate such
claim.
14. It is further submitted that in order to
ascertain the correctness of the land records, the
Corporation repeatedly sought clarification from
the Circle Officer, Sheosagar. While the Circle
Officer initially confirmed the correctness of the
Land Possession Certificate issued in favour of Shri
Ranglal Dusadh, the petitioner subsequently
produced another Land Possession Certificate and
revenue records showing the same land jointly in
the names of Ranglal and Suresh. Since such
subsequent records disclosed an additional name
in respect of the very same land without any
disclosed mutation proceedings, the Corporation
sought further clarification from the Circle Officer.
The reply furnished by the Circle Officer, together
with the copy of Register-II, according to the
respondent, revealed inconsistencies, as the
Register-II reflected Shri Ranglal Dusadh alone as
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
12/19
the raiyat. Despite repeated communications
addressed to the Circle Officer and even to the
District Magistrate seeking clarification regarding
the variation in the revenue records, no
satisfactory explanation or corroborative
documentary evidence was forthcoming to
establish that Ranglal Dusadh and Ram Lal Ram
were the same person or that the alternate land
fulfilled the eligibility criteria prescribed under the
Guidelines.
15. The Learned counsel for the
respondents accordingly submits that the
petitioner failed to establish ownership or valid
entitlement over the alternate land in the manner
contemplated under the Unified Guidelines. Since
the petitioner could not furnish suitable land
satisfying the prescribed eligibility conditions
despite being granted an additional opportunity,
the Field Verification Committee rightly rejected his
candidature on the grounds of non-fulfilment of the
eligibility criteria and furnishing incorrect
information. Consequently, the security deposit of
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
13/19
Rs.40,000/- stood forfeited in terms of Clause 26(b)
of the Unified Guidelines for Selection of LPG
Distributors, June, 2017.
16. It is further submitted that after
cancellation of the petitioner's candidature, the
Corporation proceeded with a fresh draw of lots in
accordance with the Guidelines, wherein
respondent no. 6, Shri Arun Kumar, was selected.
Upon completion of all requisite formalities and
verification, a Letter of Intent and thereafter a
Letter of Appointment were issued in favour of Shri
Arun Kumar/ Respondent No. 6 The distributorship
has since been commissioned on 31.08.2019 and
an agreement dated 04.09.2019 has also been
executed between the Corporation and the
selected distributor. It is, therefore, submitted that
third-party rights have already accrued and no
interference is now warranted.
17. It is further submitted that in view of
the above-mentioned facts and circumstances, the
Petitioner is not entitled to get any relief from this
Hon'ble Court, and it is fit to be dismissed.
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
14/19
18. In support of the case of the
respondent Corporation, the Learned counsel has
relied on the following judgments of the Division
Bench of this Court reported in (1) 2012 (2) PLJR
783 (M/s Indian Oil Corporation Limited Vs.
Raj Kumar Jha & ors) , and (2) order passed in
LPA No. 925 of 2012 (Mukesh Pandey Vs. The
Hindustan Petroleum Corporation & Ors.) .
19. The observations made by the Hon’ble
Division Bench in M/s Indian Oil Corporation
Limited (supra) are quoted hereinbelow:
“8. We are of the opinion that
the Corporation being the State within
the meaning of Article 12 of the
Constitution is supposed to act fairly,
reasonably and uniformly and has to be
objective in its approach. Once the
standard is set out in the advertisement,
the Corporation has to adhere to the said
standard without any variation. In case,
the Corporation allows any alteration the
same will amount to subjective approach
which is frowned upon by the Courts time
and again. To remain objective the
Corporation is required to adhere to the
standards mentioned in the
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
15/19
advertisement. In the present case, it is
not in dispute that the application made
by the Writ petitioner was not in
conformation with the requirements
mentioned in the advertisement. In our
opinion, the Corporation was justified in
rejecting the application of the Writ
petitioner.
9. The Learned Single Judge
ought not to have interfered with the
decision of the Corporation which was
taken in consonance with the terms and
conditions contained in the
advertisement. Besides; may be, in the
present case it was a mere typographical
error. However, there might be a case of
mischief or misrepresentation also. It is
difficult to draw a line where an error
ends and a mischief or misrepresentation
begins. The best way to avoid
discrimination is strict adherence to the
standards mentioned in the
advertisement. For the aforesaid reasons
we hold that the Corporation was
justified in rejecting the application of
the Writ petitioner. The Appeal is
allowed. The impugned judgment and
order dated 28th January, 2010 passed
by the Learned Single Judge in CWJC No.
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
16/19
13196 of 2009 is set aside. CWJC No.
13196 is dismissed.”
20. Having heard the Learned counsel for
the parties and upon perusal of the pleadings and
materials available on record, this Court finds that
the principal issue which falls for consideration is
whether the alternate land offered by the
petitioner fulfilled the eligibility criteria prescribed
under the Unified Guidelines for Selection of LPG
Distributors and the terms of the advertisement.
21. It is not in dispute that although the
petitioner was declared successful in the draw of
lots, the Letter of Selection dated 31.01.2018 was
subject to successful Field Verification of
Credentials (FVC) and verification of eligibility.
Therefore, mere selection did not confer any
vested or indefeasible right upon the petitioner to
claim grant of the distributorship.
22. The records reveal that the lease deed
initially offered by the petitioner was executed
after the last date of submission of the application
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
17/19
and, therefore, the Corporation granted him an
opportunity to furnish alternate land. The dispute
thereafter centred around the ownership of the
alternate land bearing Khata No. 477, Khesra No.
341. While the petitioner claimed that Shri Ranglal
Dusadh and Ram Lal Ram were one and the same
person, the Corporation found discrepancies in the
supporting documents and revenue records.
Repeated clarifications were sought from the Circle
Officer, but the Corporation ultimately found that
the petitioner had failed to produce satisfactory
corroborative evidence establishing the identity of
the land owner and his eligibility under the
Guidelines. The impugned order dated 23.11.2018
records the reasons for arriving at such conclusion.
23. The scope of judicial review under
Article 226 of the Constitution is confined to
examining the legality of the decision-making
process and not the merits of the decision itself.
This Court does not find that the respondent-
Corporation acted arbitrarily or in violation of the
prescribed Guidelines. Rather, the materials on
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
18/19
record indicate that adequate opportunity was
afforded to the petitioner to establish his eligibility
before the impugned decision was taken.
24. The Division Bench of this Court in M/s
Indian Oil Corporation Limited (supra), has held
that the eligibility conditions contained in the
advertisement and the Selection Brochure are
required to be strictly adhered to and no relaxation
can be granted, as any deviation would result in
arbitrariness and discrimination amongst similarly
situated candidates. The said principle squarely
applies to the facts of the present case.
25. Moreover, after cancellation of the
petitioner's candidature, a fresh selection process
was undertaken and respondent no. 6 has already
been appointed as distributor. Thus, third-party
rights have also come into existence.
26. In the aforesaid facts and
circumstances, this Court finds no illegality,
arbitrariness or procedural impropriety in the
decision of the respondent-Corporation
communicated vide Annexure-12 warranting
Patna High Court CWJC No.24190 of 2018 dt.03-07-2026
19/19
interference in exercise of Writ jurisdiction under
Article 226 of the Constitution of India.
Consequently, the petitioner has failed to establish
any enforceable legal right to the reliefs claimed.
27. Accordingly, the writ petition is
dismissed.
28. Interlocutory Application(s), if any,
shall stand disposed of.
Spd/-
(G. Anupama Chakravarthy, J)
AFR/NAFR NAFR
CAV DATE NA
Uploading Date 03.07.2026
Transmission Date
The recent ruling by the Patna High Court in Civil Writ Jurisdiction Case No. 24190 of 2018, Rakesh Kumar v. Indian Oil Corporation Ltd., offers critical insights into the stringent requirements for LPG Distributorship Eligibility and the strict application of Indian Oil Corporation Guidelines. This significant judgment, now accessible on CaseOn, underscores the importance of adhering to precise documentation and processes in public tenders.
The petitioner, Rakesh Kumar, sought judicial intervention to challenge the cancellation of his candidature for an LPG distributorship in Alampur, Rohtas, and the subsequent forfeiture of his Rs. 40,000/- application fee. He also contested the decision to conduct a fresh lottery and the selection of another candidate, Arun Kumar (Respondent No. 6), arguing that the cancellation was arbitrary and unjust.
The court's decision was primarily guided by the “Unified Guidelines for Selection of LPG Distributors, June 2017”. A key precedent cited was the Division Bench judgment in M/s Indian Oil Corporation Limited Vs. Raj Kumar Jha & Ors. (2012 (2) PLJR 783), which emphasizes the imperative for public corporations to act fairly, reasonably, and uniformly, strictly adhering to the standards set out in their advertisements without variation. Any deviation, the court held, could lead to arbitrariness and discrimination.
Rakesh Kumar applied for the LPG distributorship on 15.07.2017 and was declared successful in the draw of lots, receiving a Letter of Selection dated 31.01.2018. However, this selection was explicitly made subject to a successful Field Verification of Credentials (FVC).
During the FVC, the Indian Oil Corporation (IOC) discovered an initial discrepancy: the lease deed for the proposed showroom and godown was executed after the stipulated application deadline. In a move of fairness, the Corporation granted the petitioner an opportunity to furnish an alternate parcel of land within seven days.
The petitioner provided alternate land (Khata No. 477, Khesra No. 341) belonging to his father. However, new issues arose concerning the identity of his father. While the petitioner's identity documents consistently showed his father's name as Ram Lal Ram, the Land Possession Certificate (LPC) and revenue records for the alternate land listed the raiyat (landowner) as Shri Ranglal Dusadh. The petitioner explained this as a variation in names, submitting affidavits, a genealogical table, and other documents to assert that Ranglal Dusadh and Ram Lal Ram were the same person, and that earlier discrepancies were clerical in nature, clarified by the Circle Officer, Sheosagar.
Despite repeated communications and clarifications from the Circle Officer to the IOC (dated 30.06.2018, 24.08.2018, and 25.10.2018) stating that discrepancies were clerical and the land was recorded in the names of Ranglal and Suresh, the Corporation remained unconvinced. The IOC found that the petitioner failed to provide reliable corroborative evidence to substantiate his claim that the names referred to the same person, or to adequately explain the joint ownership claims that appeared without proper mutation records in the Register-II.
The Corporation concluded that the petitioner failed to establish ownership or valid entitlement over the alternate land in line with the Unified Guidelines. Consequently, his candidature was cancelled via a letter dated 23.11.2018, and his security deposit was forfeited. Immediately thereafter, a fresh draw of lots was conducted on 28.11.2018, and Arun Kumar (Respondent No. 6) was selected, with his distributorship already commissioned on 31.08.2019, leading to the accrual of third-party rights. For legal professionals and students seeking to quickly grasp the nuances of such rulings, CaseOn.in offers invaluable 2-minute audio briefs that distill complex judgments into easily digestible formats, providing a competitive edge in legal research.
The Patna High Court upheld the Corporation’s decision, dismissing the writ petition. The court reiterated that the Letter of Selection was subject to successful FVC and verification of eligibility, meaning mere selection did not confer a vested or indefeasible right. It found that the petitioner failed to establish his eligibility concerning the alternate land, even after being granted additional opportunities. The court concluded that the respondent-Corporation did not act arbitrarily or violate the prescribed guidelines. Instead, it followed a process that afforded the petitioner adequate opportunity, and its decision to cancel the candidature and proceed with a fresh selection was justified, especially given that third-party rights had already accrued.
This judgment serves as a vital resource for legal practitioners and students for several reasons:
Understanding this ruling is crucial for anyone involved in public tenders, administrative law, or contractual disputes with state entities.
All information provided in this article is for informational purposes only and does not constitute legal advice. While efforts have been made to ensure accuracy, readers should consult with a qualified legal professional for advice on specific legal issues.
Legal Notes
Add a Note....