M/S ANAND GAS SERVICE, THROUGH ONE OF ITS PARTNER NAMELY SRI SACHCHIDA NAND SINGH v. UNION OF INDIA THROUGH THE SECRETARY (MARKETING), MINISTRY OF PETROLEUM AND NATURAL GAS
WPC/5996/2026 · 2026-08-18
Sri Ananda Sen
Writ Petition (Civil)body2026
DailyLaw.ai
[ 2026 DAILYLAW 23140 (JHR) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 23140 (JHR) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
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IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No. 5996 of 2026 ------ M/s Anand Gas Service, A partnership firm having its office at Ashok Nagar (Between Rd. No.1 & 2), PO & PS-Argora & Dist-Ranchi, through one of its Partner namey, Sri Sachchida Nand Singh, aged about 80 years, S/o Late Ram Briksh Singh, Resident of H 1/278 A, beside Shakti Park Harmu Housing Colony, Harmu, PO-Doranda & PS-Argora, Dist- Ranchi, Jharkhand.
… … Petitioner(s) Versus
1. Union of India through the Secretary [Marketing], Ministry of Petroleum and Natural Gas, Shastri Bhawan, Dr. Rajendra Prasad Road, PO-Kartavya Path & PS-Shastri Bhawan, New Delhi, 110001.
2. Indian Oil Corporation Ltd, through its Chairman, Indian Oil Bhawan, PO + PS-District-Bandra (East), Mumbai, Maharastra.
3. Executive Director (L.P.G.), Indian Oil Corporation Ltd. Indian Oil Bhawan, PO + PS-District-Bandra (East), Mumbai, Maharastra.
4. Mr. AK Samantaray, ED & Bihar State Head, Indian Oil Corporation Ltd. (Bihar State Office), Indian Oil Bhawan, Plot No.A-6, PO + PS-Patliputra Industrial Area, Dist-Patna Bihar.
5. General Manager, Indian Oil Corporation Ltd., Lok Nayak Bhawan, 5th Floor, Dak Bunglow Chowk, PO-GPO, PS-Kotwali, patna, Bihar.
6. Deputy General Manager [L.P.G.] Indian Oil Corporation Ltd., Lok Nayak Bhawan, 5th Floor, Dak Bunglow Chowk, PO-GPO, PS- Kotwali, patna, Bihar.
7. Divisional LPG Sales Head, Ranchi Indane Divisional Office, PO & PS-Namkum, Dist-Ranchi.
8. Chief Area Manager, Indian Oil Corporation, Indane Area Office, 2nd Floor, Pulsar Plaza, Line Tank Road [Jail Road], PO-GPO, PS- Kotwali, Dist-Ranchi.
9. Senior Area Manager, Indian Oil Corporation, Indane Area Office, 2nd Floor, Pulsar Plaza, Line Tank Road [Jail Road], PO- GPO, PS-Kotwali, Dist-Ranchi.
10. Manager cum Field Officer, Indian Oil Corporation Ranchi, Sales Area, PO, GPO & PS-Kotwali, Dist-Ranchi.
11. Sales Officer, (LPG Sales), Ranchi-LPG SA, Ranchi Indane, Divisional Office, I.O.C.L., (MD), PO, GPO, & PS-Kotwali, Dist- Ranchi.
… … Respondent(s) ------
CORAM : SRI ANANDA SEN, J. ------
For the Petitioner(s) : Mr. Indrajit Sinha, Advocate
Ms. Prerna Jhunjhunwala, Advocate
For the Respondent(s) : Mr. Prashant Pallav, ASGI Mr. Rahul Lamba, Advocate
Ms. Kanu Priya, Advocate
Mr. Anish Kamal, Advocate
------
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03/ 18th August, 2026
1. Heard the parties. 2. The petitioner is aggrieved by the order of penalty dated 19.05.2026 and 27.07.2026, whereby a fine or penalty of Rs.21,93,669.40/- and about Rs.45,32,442.07, respectively, has been imposed. 3. Admittedly, against the first order of penalty i.e., order dated 19.05.2026, an appeal has already been filed on 16.06.2026, which is pending. Against the second order dated 27.07.2026, the petitioner has not filed any appeal since by then he had already filed this instant writ petition. 4. Admittedly, in terms of Clause 3.11 of the Marketing Discipline Guidelines (MDG) 2022 for LPG Distributorship which is invoked from 1st May, 2022, the order is appealable. The relevant provision reads as follows: -
“3.11 Appellate proceedings:
1. In all cases of critical and major irregularities where orders are issued for taking action under MDG, the Distributor will have the right to appeal within a period of 30 days from the date of receipt of order to the appropriate authority who will be empowered to decide the matter. The appellate authority shall dispose off the appeal within 60 days from the date of filing of the appeal. 2.The appeal in case of regular LPG distributorship would be allowed only after the amount equivalent to 25% of fine/ quantum of irregularity as levied or Rs. 10 lacs, whichever is lower, has been deposited by the Distributor with the OMC. Appeal in case of Durgam Kshetriya Vitarak (DKV) shall be allowed only after 10% of fine/ quantum of irregularity as levied or Rs. 1 lac, whichever is lower, has been deposited by the distributor with the OMC. In case the verdict on the appeal goes in favour of the distributor, the OMC shall refund the amount as applicable without interest after the disposal of the appeal. However, in case the appeal is rejected, the distributor will have to deposit the balance amount of fine /quantum of irregularity as levied to the concerned OMC within 30 days from the date of disposal of the appeal. 3.
In the case of termination of the LPG distributor other than SC/ST category, the appellate authority will be the ED (LPG) in the Head Office of the respective OMCs. In the case of termination of SC/ST category distributorship, the appellant authority will be Director (HR) of the OMC
4. For all appeals in case of critical and major irregularities not leading to termination, the appellate authority will be LPG Head of the State/Region/Zone of IOC, BPC & HPC respectively for both SC/ST and Non SC/ST category distributorships.”
5. Admittedly, against a penalty order dated 19.05.2026, the petitioner has preferred an appeal, which is pending. Thus,
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there is no occasion for the petitioner not to file an appeal against the second order of penalty. 6. The petitioner is directed to file an appeal against the second order of penalty within two weeks from today and the period of 30 days for filing the appeal, is thus stands waived, since the petitioner had challenged the same in this writ petition. The appeal so filed, should be disposed of within 30 days. 7. So far as another order dated 21.07.2026 is concerned, which is an order by which the dealership of the petitioner has been suspended, after going through the same, I find that the suspension took effect with immediate effect but surprisingly, it is not for a particular period, it is in perpetuity / for an indefinite period. No suspension can be for an indefinite period. 8. Further, it is clear from the records that it is not the case of the respondents that they are intending to terminate the dealership of the petitioner. Thus, the suspension cannot be for an indefinite period which will in other words lead to termination of the dealership. Thus, I direct the petitioner to approach the Appellate Authority, who will also consider this aspect of suspension and will pass an appropriate order on the same. 9.
So far as the direction and observation given in the last paragraph of the order dated 21.07.2026 to the extent that the petitioner was directed to reconcile all IOCL equipment and hand over all Corporation’s equipment (viz. LPG cylinders, Pressure Regulators etc.), Corporation’s stationary, all records in their custody pertaining to Indane Customers and distributorship, including back up of data in the computer system within 7 days of receipt of the letter to the IOCL, is concerned, the same is modified to the extent that the dealer i.e., the petitioner will keep all the equipment of the Indian Oil Corporation Limited i.e., LPG cylinders, Pressure Regulators etc. Corporation’s stationary and all records in their custody. A proper inventory will be prepared in presence of a representative of the petitioner and IOCL, and the inventory will be signed by both the parties. All the articles will be kept in the safe custody and if IOCL needs to make any inspection, facility will
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be provided to the representative of the IOCL to do so, by the petitioner. 10. With the aforesaid observation, this writ petition stands
disposed of.
11.
Pending IA, if any, also stand disposed of.
(ANANDA SEN, J.) 18th August, 2026
S.K.D/CP-2
Uploaded on 21 /08/2026