- 1 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 2ND DAY OF APRIL, 2025 PRESENT THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO.100155 OF 2020 (GM-RES) BETWEEN: SMT. SHOBA, W/O. RUDRAPPA BHAJANTRI AGE. 44 YEARS, OCC. AGRICULTURE, R/O. BAILHONGAL, TQ. BAILHONGAL, DIST. BELAGAVI-590001. …APPELLANT (BY SRI S.S. YADRAMI, SENIOR ADVOCATE FOR SRI G.V. BHAT, ADVOCATE) AND: 1. THE CHIEF AREA MANAGER, INDIAN OIL CORPORATION LTD., INDIAN OIL BHAVAN, 1ST FLOOR, KHANAPUR ROAD, TILAKAWADI, BELAGAVI-590006. 2. PRASAPPA, S/O. NINGABASAPPA CHALAVADI, AGE. MAJOR, OCC. BUSINESS, R/O. BELAVANAKI, TQ. RON, DIST. GADAG-582202. …RESPONDENTS (BY SRI C.V. ANGADI, ADVOCATE FOR R1 SRI S.B. MALIGAWAD, ADVOCATE FOR R2) THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF KARNATAKA HIGH COURT ACT, 1961, PRAYING TO, ALLOW THIS APPEAL AND SET ASIDE THE IMPUGNED ORDER PASSED BY THE LEARNED SINGLE JUDGE OF THIS HON’BLE COURT IN WP NO.148416/2020 DATED 02.12.2020 AND FURTHER BE PLEASED TO ALLOW THE WRIT PETITION AND QUASH THE IMPUGNED ORDER OF CANCELLATION OF THE DEALERSHIP GRANTED TO THE APPELLANT BY RESPONDENT NO.1 ASHPAK KASHIMSA MALAGALADINNI Digitally signed by ASHPAK KASHIMSA MALAGALADINNI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 AND GRANT SUCH OTHER RELIEFS DEEMED FIT AND PROPER IN THE CIRCUMSTANCES OF THE CASE. THIS WRIT APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MR. JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE S G PANDIT) The above intra-court appeal filed under Section 4 of the Karnataka High Court Act, 1961, is directed against the order of the learned Single Judge, dated 02.12.2020 passed in W.P.No.148416/2020, whereunder the appellant/writ petitioner’s writ petition questioning cancellation of the allotment of LPG Distributorship vide order dated 04.03.2020 is rejected. 2. Brief facts of the case are that a Notification, dated 17.08.2017 was issued calling application for allotment of LPG Distributorship at Belavanaki, Ron Taluk, Gadag District, under SC/ST Category. In pursuance of the said Notification, petitioner is stated to have applied for LPG Distributorship and the petitioner was selected for allotment of the same. On his selection, Annexure-A communication dated 31.12.2018 was issued to the petitioner. In terms of the conditions laid down in the Letter of Intent i.e, the letter dated 31.12.2018, the - 3 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 petitioner was required to construct the LPG storage godown and showroom within a period of four months from the date of the said letter. The petitioner could not complete the construction of LPG storage godown and showroom within the stipulated time. At request of the petitioner, time was extended, and even after extension of time, the petitioner failed to complete the construction or to obtain necessary license required. Thereafter, a show-cause notice, dated 02.01.2020 (Annexure-R8) was issued to the petitioner calling upon her as to why the Letter of Intent should not be cancelled. Thereafter, Annexure-G dated 04.03.2020 was issued canceling the LPG Distributorship allotted to the petitioner. Questioning the same, the petitioner was before this Court in the above writ petition which is rejected under the impugned order dated 02.12.2020. 3. While rejecting the writ petition, the learned Single Judge observed that the petitioner had failed to comply with the conditions of construction of LPG storage godown and showroom within a period of four months and even after extension of time, the petitioner had failed to comply the same. The learned Single Judge has also given a finding that even as on the date of filing of the writ petition, the construction was not completed and it - 4 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 was still under progress. In that view of the matter, the learned Single Judge has held that cancellation of allotment of LPG Distributorship is justified. 4. Heard learned Senior Counsel, Sri. S.S.Yadrami for Sri. G.V.Bhat, learned counsel appearing for the appellant, and Sri. C.V.Angadi, learned counsel appearing for the respondent. Perused the entire writ appeal papers. 5. Learned Senior Counsel for the appellant would contend that the order of the learned Single is contrary to the facts and circumstances of the case and the same is unsustainable. Learned counsel would submit that the appellant by investing huge amount has purchased the land and constructed the godown, and as the appellant has completed the construction of godown and showroom, the respondent ought not to have cancelled the LPG Distributorship. Further, learned Senior Counsel would submit that the learned Single Judge has erred in wrongly holding that the appellant/petitioner has suppressed the relevant material fact and filed the writ petition. The learned Senior Counsel would submit that the appellant has not suppressed any fact and he had disclosed every fact in the - 5 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 writ petition and placed on record every correspondence that had taken place between the appellant/petitioner and the respondent. 6. Learned Senior Counsel appearing for the appellant invites attention of this Court to the letter, dated 19.02.2019, of the Deputy Chief Controller of Explosives, Mangalore, and submits that the site layout and construction plan of the proposed storage facility was approved and immediately thereafter, steps have been taken to proceed with the construction. It is submitted that before the petitioner could complete the formalities in terms of letter dated 19.02.2019, a show-cause notice dated 02.01.2020 was issued and immediately thereafter, cancellation order was issued. Thus, learned Senior Counsel would submit that there was no delay on the part of the appellant/petitioner and that when the appellant/petitioner has already invested huge amount, the respondent-authority ought to have shown some leniency to the appellant and given some time to complete the project. Thus, learned Senior Counsel, on equity, also prays for allowing the writ appeal. - 6 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 7. Per contra, learned counsel, Sri. C.V.Angadi, for respondent No.1, supports the order of the learned Single Judge and vehemently submits that the petitioner has failed to construct the LPG storage godown and showroom within a period of four months as required under Annexure-A dated 31.12.2018. Further, he also submits that the petitioner has failed to obtain the required license from the local authorities and also under the Petroleum Act. Further, the petitioner has not placed on record the completion certificate to establish the completion of construction of LPG storage godown and showroom. In the absence of any material to indicate completion of the construction, the submission of the petitioner that she has completed the construction cannot be accepted. He submits that, moreover, in terms of the letter dated 19.02.2019, the petitioner has failed to obtain ‘No Objection’ certificate from the district authority/local body and also to make an application in Form-C. He submits that, in the absence of non-compliance of terms and conditions of the Letter of Intent dated 31.12.2018, the petitioner would not be entitled for any relief. Thus, he prays for dismissal of the appeal. - 7 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 8. On hearing the learned counsel for the parties and on perusal of the entire writ appeal papers, we are of the opinion that the appellant/petitioner has not made out any ground to interfere with the well-reasoned order of the learned Single Judge. 9. It is an admitted fact that, in pursuance of the Notification dated 17.08.2017 calling applications for allotment of LPG Distributorship Distributorship at Belavanaki, Ron Taluk, Gadag District, under SC/ST Category, the petitioner applied for the same. The petitioner was selected and Letter of Intent dated 31.12.2018 (Annexure-A) was issued. In terms of Annexure-A, the petitioner was required to comply with certain terms and conditions. One of the condition is that construction of LPG storage godown and showroom should be completed within a period of four months from the date of said Letter of Intent. The other condition is that the LPG storage godown should be approved and licensed by Petroleum and Explosives Safety Organisation. It is an admitted fact that the petitioner has failed to construct the LPG storage godown and showroom within four months as required under the Letter of Intent dated 31.12.2018. - 8 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 10. Annexure-R series would amply establish that the petitioner failed to construct the LPG storage godown and showroom within the specified time and even thereafter. Annexure-R2 dated 17.04.2019 of the respondent addressed to the petitioner required the petitioner to give the status of the LPG godown and showroom construction. Annexure-R3, the letter dated 06.08.2019 of the respondent addressed to the petitioner, would indicate that despite reminders and messages, the petitioner had not made sincere efforts to complete the godown construction and development of showroom. Under Annexure-R3, it was also informed to the appellant/petitioner that, if she failed to provide explanation for the lapse in construction and development of showroom and if she failed to submit a status, necessary action would be considered for cancellation of Letter of Intent. Thereafter, show cause notice dated 20.08.2018 (Annexure-R4) was issued to the petitioner calling upon her to show cause as to why the Letter of Intent should not be cancelled. The petitioner replied in terms of Anenxure-R5 intimating that she would complete the godown construction within another two months. As the petitioner failed to complete the construction within another two months, one - 9 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 more show-cause notice dated 24.10.2019 was issued to the petitioner to show cause as to why the Letter of Intent should not be cancelled. The petitioner replied to that show-cause notice stating that she would complete the godown work within 15-20 days. Even thereafter, she failed to complete the construction of LPG storage godown. As such, letter dated 04.03.2020 was issued to the petitioner canceling the LPG Distributorship. 11. Even to this date, the petitioner has not placed on record the completion certificate for having completed the construction of LPG storage godown and showroom. The petitioner has also not placed on record the necessary certificates or approval obtained from the local authorities, or the approval or license by Petroleum and Explosives Safety Organisation. In the absence of any material to establish completion of construction and also in the absence of any documents to evidence obtaining of necessary license or approval, mere statement of the petitioner cannot be believed. The petitioner has also not made any efforts to complete the construction of godown or to obtain necessary approval or license during the pendency of the writ petition or this appeal. On the other hand, by obtaining interim order, the petitioner has - 10 - NC: 2025:KHC-D:5914-DB WA No.100155 of 2020 caused inconvenience to the general public. The LPG Distributorship is meant for distribution of LPG cylinders to the general public. The appellant/petitioner, who has come before the Court only to buy time, without any intention to comply the terms and conditions of allotment of LPG Distributorship for years together, would not be entitled to any discretionary relief. It has also come on record that after cancellation of the LPG Distributorship allotted to the petitioner, the respondent has taken steps for allotting the same to other person respondent No.2 herein. 12. For the reasons recorded above, we do not find any merit in the writ appeal and accordingly, the writ appeal stands dismissed. Pending interlocutory applications, if any, are disposed of as not surviving for consideration. Sd/- (S G PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE KMS, CT:VP LIST NO.: 1 SL NO.: 38