COMMON CAUSE,REGISTERED SOCIETY versus UNION OF INDIA AND OTHERS

COMMON CAUSE,REGISTERED SOCIETY versus UNION OF INDIA AND OTHERS

The exercise of discretionary power by the Minister in allotting petrol pumps was arbitrary, discriminatory, motivated by extraneous considerations and malafide, violating Article 14 and established principles of fair governance; such allotments must be transparent and based on objective criteria, and arbitrary distributions of public property are illegal.

Parties
Petitioner: COMMON CAUSE, A REGISTERED SOCIETY; Respondents: UNION OF INDIA AND OTHERS
Jurisdiction
India
Judgment Date
25 September 1996
Procedural Posture
Writ Petition (civil) / Final Judgment
Outcome
Petition allowed; allotments quashed.
Legal Topics
Article 14 Equality Before Law, Article 32 Constitutional Remedies, Article 298 Distribution of Executive Powers, Malafide Exercise of Discretion, Grant of Public Largesse, Personal Liability of Public Officers, Arbitrariness in Administrative Actions
Constitutional Law Administrative Law Public Law Tort Law Article 14 Equality Before Law Article 32 Constitutional Remedies Article 298 Distribution of Executive Powers Malafide Exercise of Discretion +3 more

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Parties

COMMON CAUSE, A REGISTERED SOCIETY

Petitioner

UNION OF INDIA AND OTHERS

Respondents

Procedural Posture

Writ Petition (civil) / Final Judgment

Legal Issues

  1. 1 Whether the ministerial allotment of petroleum retail outlets under discretionary quota was arbitrary, discriminatory, malafide, and illegal.
  2. 2 Whether guidelines and criteria were followed in the allotment process.
  3. 3 Whether public servants can be personally liable for malafide acts in discharge of functions.

Ratio Decidendi

The exercise of discretionary power by the Minister in allotting petrol pumps was arbitrary, discriminatory, motivated by extraneous considerations and malafide, violating Article 14 and established principles of fair governance; such allotments must be transparent and based on objective criteria, and arbitrary distributions of public property are illegal.

Court Disposition

Petition allowed; allotments quashed.

Orders

  • Orders allotting petrol pumps to fifteen persons are quashed.
  • All allocation and allotment of petrol pumps/retail outlets by the Government of India or Oil Corporations in the names of these persons stand cancelled with immediate effect.