Research › Search › Judgment

High Court of Chhattisgarh · body

2026 DAILYLAW 20728 (CHH)

M/S BALAJI GAS COMPANY v. INDIAN OIL CORPORATION LIMITED,

WPC/2348/2026 · 2026-05-10

Shri Amitendra Kishore Prasad

body2026

Judgment text

Extracted from the PDF above. The PDF is authoritative.

1 2026:CGHC:22101 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPC No. 2348 of 2026 1 - M/s Balaji Gas Company Through The Sole Proprietor Krishna Kumar Selarka, S/o. Late Shir J.D. Selarka Aged About 74 Years, R/o. Magarpara Road, Bilaspur, Tahsil And District- Bilaspur (C.G.). ... Petitioner(s) versus 1 - Indian Oil Corporation Limited, Through The Area Manager, 1st Floor, Indian Oil Bhawan, Vip Road, Telibandha, Raipur, Tahsil And District- Raipur (C.G.). 2 - Executive Director L.P.G. Indian Oil Corporation Limited Indian Oil Bhavan, G-9 All Yavar Jung Marg, Bandra (East) District- Mumbai (Maharastra). 3 - General Mangar Indian Oil Corporation Limited (I.O.C.L) Madhya Pradesh State Office, Indian Oil Bhavan, 16, Arera Hills, Jail Road, District- Bhopal (M.P.). 4 - The Sales Officer Indian Oil Colony, Bilaspur Tahsil And District- Bilaspur (C.G.). RAGHVENDRA JAT Digitally signed by RAGHVENDRA JAT 2 5 - Collector (Food And Civil Supplies Department), District- Bilaspur (C.G.). ... Respondent(s) For Petitioner(s) : Mr. Achyut Tiwari, Advocate. For Respondent(s) No. 1 : Mr. Anand Shukla, Advocate. For Respondent/State : Mr. Anand Dadariya, Dy. A.G. Hon’ble Mr. Justice Amitendra Kishore Prasad Order on Board 11/05/2026 1. By way of this petition, the petitioner has prayed for following reliefs:- “10.1 That, this Hon'ble Court may kindly be pleased to call for the entire record pertaining to the case of the petitioner. 10.2 That, this Hon'ble Court may kindly be pleased to direct the respondent authorities to ensure the supply of commercial LPG cylinders to the Petitioner in accordance withthe Natural Gas (Supply Regulation) Order, 2026 by the Ministry of Petroleum and Natural Gas, Government of India, in the interest of justice. 10.3 The Hon'ble Court may kindly be pleased to direct the respondent authorities to consider and allow the applications /representations filed by the petitioner (Annexure P/10) in accordance with law within the stipulated time, in the interest of justice. 3 10.4 That, any other relief, which this Hon'ble Court may deem fit and proper together with cost of the petition.” 2. Brief facts of the case, is that, the petitioner is a duly registered distributor of Indane (Liquefied Petroleum Gas) under Indian Oil Corporation Limited and is carrying on distributorship business in accordance with the rights and obligations flowing from the distributorship agreement executed between the parties, it is submitted that the petitioner entered into a Distributorship (Domestic & Commercial) Agreement dated 28.12.2012 with Indian Oil Corporation Limited for supply and distribution of Indane LPG cylinders, and since then has been operating the distributorship in accordance with law and the conditions prescribed by the Corporation, it is further submitted that the petitioner possesses a valid licence for storage of compressed gas cylinders, which was duly renewed by the competent authority on 06.09.2023 and remains valid up to 30.09.2030, thereby authorising the petitioner to lawfully store and handle LPG cylinders subject to compliance with the prescribed statutory norms and safety regulations, according to the petitioner, he presently caters to approximately 14,722 gas connections including 215 commercial gas connections and numerous consumers under various categories, who are dependent upon regular supply of LPG cylinders for their daily commercial and domestic requirements; it is further submitted that due to 4 disruptions in liquefied natural gas shipments passing through the Strait of Hormuz on account of geopolitical tensions in the Middle East, the Ministry of Petroleum and Natural Gas, Government of India issued the Natural Gas (Supply Regulation) Order dated 09.03.2026 regulating supply and allocation of gas to various priority sectors, wherein industrial and commercial consumers supplied through City Gas Distribution (CGD) networks falling under Priority Sector IV were made entitled to receive up to 80% of their average consumption subject to operational availability and allocation norms; it is submitted that the petitioner has been regularly raising indents for supply of commercial gas cylinders strictly in accordance with the requirement and demand of its consumers and has also been making advance payments against such indents, maintaining proper stock registers and records of receipt and issuance of filled cylinders to ensure transparency and accountability; however, despite the petitioner having deposited an advance amount of Rs. 7,79,940.65/- towards supply of commercial and domestic cylinders, the respondents have failed to ensure adequate and proportionate supply of commercial gas cylinders to the petitioner; it is specifically contended that in the month of March the petitioner raised indents for 228 commercial cylinders against which only 48 cylinders were supplied, and similarly in April indents for 156 cylinders were raised but only 72 cylinders were supplied, thereby causing severe disruption in supply and distribution activities; it is further submitted that despite 5 repeated applications and representations submitted by the petitioner before the concerned authorities highlighting the shortage and inadequate supply of gas cylinders, no effective action has been taken till date, due to which the consumers attached to the petitioner’s distributorship are facing serious hardship and inconvenience in carrying out their day-to-day commercial and domestic activities; according to the petitioner, the arbitrary and disproportionate reduction in supply by the respondent authorities is wholly unreasonable, contrary to the Natural Gas (Supply Regulation) Order, 2026, violative of principles of fairness and transparency, and has caused substantial prejudice not only to the petitioner but also to thousands of consumers dependent upon the petitioner’s distributorship, compelling the petitioner to approach this Hon’ble Court by filing the present writ petition. 3. Learned counsel appearing on behalf of the petitioner submits that the petitioner is a duly authorised and registered distributor of Indane LPG under Indian Oil Corporation Limited and has been operating the distributorship in accordance with the terms and conditions of the distributorship agreement executed on 28.12.2012; it is further submitted that the petitioner possesses a valid licence for storage and handling of compressed gas cylinders valid up to 30.09.2030 and is catering to a large number of consumers, including 215 commercial connections, who are dependent upon uninterrupted supply of LPG cylinders; learned 6 counsel submits that despite the petitioner regularly raising indents strictly in accordance with the actual demand of consumers and despite making substantial advance payments amounting to Rs. 7,79,940.65/-, the respondent authorities have failed to supply commercial cylinders proportionate to the petitioner’s requirement; it is contended that the Ministry of Petroleum and Natural Gas, Government of India, by virtue of the Natural Gas (Supply Regulation) Order, 2026, has specifically provided that industrial and commercial consumers falling under Priority Sector IV are entitled to receive 80% of their past six months’ average consumption subject to operational availability, however, the respondents have acted in complete disregard of the said policy and have supplied only a fraction of the required cylinders to the petitioner; learned counsel further submits that in March the petitioner raised indents for 228 commercial cylinders but only 48 cylinders were supplied, while in April indents for 156 cylinders were raised and only 72 cylinders were supplied, thereby seriously affecting the petitioner’s business operations and causing immense hardship to consumers attached to the distributorship; it is further submitted that despite several representations and requests made before the respondent authorities pointing out the acute shortage and requesting adequate supply, no effective or corrective steps have been taken till date; according to learned counsel, the arbitrary and deficient supply of gas cylinders by the respondents is unreasonable, 7 discriminatory, violative of the statutory policy framed by the Government of India, and contrary to principles of fairness and legitimate expectation, and therefore appropriate directions deserve to be issued by this Hon’ble Court directing the respondents to ensure proper and adequate supply of commercial gas cylinders to the petitioner in accordance with the notified policy and allocation norms. 4. On the other hand, learned counsel appearing on behalf of respondent No. 1 as well as the State authorities opposes the submissions advanced on behalf of the petitioner and contends that the actions taken by the respondent authorities are strictly in accordance with the prevailing policy, regulatory framework, and operational constraints, and therefore no interference by this Hon’ble Court is warranted in the facts and circumstances of the present case. 5. I have heard learned counsel for the parties and perused the material available on record. 6. Considering the facts and circumstances of the case, and further taking into consideration the fact that the grievance raised by the petitioner pertains to supply and allotment of LPG cylinders, which fall within the ambit of essential commodities and directly affect the day-to-day requirements of consumers, this Court deems it appropriate to direct respondent No. 1, namely the Divisional LPG Sales Head of Indian Oil Corporation Limited, to duly consider the grievance and representations submitted by the petitioner and to 8 take an appropriate decision thereupon strictly in accordance with law, applicable policy, and governing regulations within a period of 15 days from the date of receipt of a copy of this order. 7. With this observation and direction, the writ petition is disposed of. Sd/- (Amitendra Kishore Prasad) Judge Raghu Jat