Swati Enterpprises v. Indian Oil Corporation Limited

RAJIV SAHAI ENDLAW, J. OCTOBER 28, 2015 Gj.. (corrected & released on 20th November, 2015)

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 28th October, 2015 + W.P.(C) NO.912/2010 SWATI ENTERPPRISES ..... Petitioner Through: Mr. Abhijat with Mr. Rishabh Bansal Advocates. Versus INDIAN OIL CORPORATION LIMITED ..... Respondent Through: Mr. M.M.Kalra with Ms. Sonali Kumar, Advocates CORAM: HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW 1. The petition impugns the disqualification by the respondent Indian Oil Corporation Limited (IOCL) of the petitioner in the selection procedure for appointment as Del Credere Associate Cum Consignment Stockist (DCA cum CS)/ Del Credere Associate (DCA) at Chandigarh. 2. The petition was entertained and vide interim order dated 15th February, 2010, which continues to be in force, any decision taken by the respondent IOCL of appointment of a agent, was made subject to result of the writ petition. Pleadings have been completed. The counsels have been heard. 3. The petitioner, in response to an advertisement published by the respondent IOCL inviting applications for appointment as aforesaid had applied. The respondent IOCL vide its letter dated 31st August, 2009 sought certain further information from the petitioner and which also the petitioner claims to have furnished under cover of its letter dated 10th September, 2009. The counsel for the petitioner has argued that the respondent IOCL however did not inform the petitioner the outcome of its application aforesaid compelling the petitioner to seek information on 29th December, 2009 under the Right to Information Act, 2005 and in response whereto respondent IOCL on 21st January, 2010 informed that the petitioner has failed to meet the following prescribed eligibility criteria: i) Average turnover (last three completed financial years) of Rs. 5 crore per annum from marketing and distribution of Polymer/Petroleum/Petrochemical/ Chemical good ii) Minimum average net worth of the last three completed financial years of Rs. 2 crore. 4. Challenging the reasoning aforesaid of the respondent IOCL, this petition has been filed. 5. The counsel for the petitioner has drawn attention of this Court to the Agreement / Memorandum of Understanding (MoU) dated 1st April, 2004 signed between Mr. Ramesh Kumar Gupta, sole proprietor of M/s Swati Enterprises and M/s Sturdy Industries Ltd. and on the basis thereof has argued that though the petitioner Swati Enterprises prior to 1st April, 2004 was the sole proprietory of Mr. Ramesh Kumar Gupta but vide said agreement / MoU became a the sole proprietory of M/s Sturdy Industries Ltd. However, on inquiry, it is informed that the said document was not filed by the petitioner alongwith its application for appointment aforesaid with the respondent IOCL. Attention is thereafter invited to the application submitted by the petitioner to the respondent IOCL in response to the advertisement aforesaid and particularly to the endorsement "All above details relate to Sturdy Industries Ltd. being proprietor of Swati Enterprises" against the column "Remarks if any", under column 5 titled "Financial details" in the form in which the application was prescribed to be made. On the basis thereof, it is contended that the petitioner had made it known to the respondent IOCL that the financial details furnished by the petitioner were the details of Sturdy Industries Ltd. being the proprietor of the petitioner. Attention in this regard is also drawn to the extract of the resolution passed in the meeting of the Board of Directors of Sturdy Industries Ltd., stated to have been filed along with the application aforesaid. 6. The counsel for the petitioner has next invited attention to the letter dated 31st August, 2009 of the respondent IOCL seeking clarification from the petitioner and from the response dated 10th September, 2009 thereto it is shown that all the clarifications sought were duly furnished. It is thus argued that the respondent IOCL erred in treating the petitioner as not meeting the requisite qualification of having a