HC clears decks for 60 additional petrol pumps for Moga
The association, Moga Periphery Pump Association had challenged June 2023 advertisement whereby applications were invited for 60 new petrol pumps in the district. The association had stated that a dealer is required to achieve a minimum turnover of 350 KL of motor spirit and high-speed diesel.
The Punjab and Haryana high court has cleared decks for 60 additional petrol pumps proposed to be set up by different public sector oil companies in Moga.
“In the case in hand, intent of the petitioner is not to stop alleged illegality on the part of the authorities whereas the intent is to avoid competition. The petitioner is trying to use judicial forum to halt setting up of new petrol pumps. Judicial process cannot be used to stop healthy competition in the guise of allegation of violation of any instruction issued by government,” the bench of justice Jagmohan Bansal observed dismissing plea from local petrol pump association.
The association, Moga Periphery Pump Association had challenged June 2023 advertisement whereby applications were invited for 60 new petrol pumps in the district. The association had stated that a dealer is required to achieve a minimum turnover of 350 KL of motor spirit and high-speed diesel. There are 141 petrol pumps in Moga, and the average turnover of these petrol pumps is 92 KL per month which is much lower than the minimum prescribed limit. If 60 new petrol pumps are set up within the district, the turnover of every dealer would substantially reduce, and no petrol pump would be financially viable.
The court observed that the members of the association indubitably at the time of setting up of petrol pump have entered into contract with the respective oil company. In the contract, it has been specifically provided that the corporation shall be free to set up any number of petrol pumps. The dealer has no right to inhibit the corporation from setting up new petrol pumps, it added.
The court further recorded that the argument that setting up of new petrol pumps would wipe out financial viability of existing petrol pumps is misconceived and cannot be countenanced by the court. The members of petitioner-association have entered into commercial contracts with respondents which are government companies, however, the contracts are not statutory in nature. These contracts are commercial in nature, it said, adding that it is prerogative of the parties to decide the question of commission and their viability. “The court cannot decide the question of their viability. People who have applied to set up new petrol pumps must be mindful of the fact that the existing petrol pumps are not able to achieve minimum targets. It cannot be expected that oil companies are more interested to widen their net of petrol pumps rather than their sale,” it said, adding that every oil company in the form of tanks, dispensers and other equipment has to invest a good amount while setting up a petrol pump.
The court further held that the association has undoubtedly the right of business and trade as guaranteed by Article 19(1)(g) of the Constitution, however, they have no right to restrict anyone else to trade. “If this proposition is accepted, every businessman or professional would come forward and claim that no new person should be permitted to come in his business or profession because it would wipe out his financial viability. Article 19 (1)(g) of the Constitution of India guarantees right to trade but does not permit to quell or devour a competition which is neither unethical nor against the ethos of our Constitution,” it stated.