Saturday, Dec 21, 2002
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By J. Venkatesan
A Bench, comprising Justice Y.K. Sabharwal and Justice H.K. Sema, also appointed a two-member committee comprising Justice S.C. Agrawal, a retired judge of the apex court and Justice P.K. Bahri, retired judge of the Delhi High Court, to probe the 413 cases of "tainted allotments" and submit a report in three months. (Out of 3,760 allotments, in 2,248 cases agreements were signed between oil companies and letters of intent (LOI) holders and the remaining LOI holders were in the process of completing the requisite formalities when the impugned order was issued.) The Bench, however, did not accept the contention of the allottees that the notification was the result of a relative of the Prime Minister, Atal Behari Vajpayee, being involved. The court reminded the Government that the "role model for governance and decision taken thereof should manifest equity, fair play and justice... The Government has to rise above the nexus of vested interests and nepotism and eschew window-dressing". The Bench said that though Mr. Vajpayee's decision might look legitimate, the reasons were not based on values but were meant to achieve popular accolades and such a decision could not be allowed to operate. The Government should not have exercised the power to escape the scrutiny of allotments exposed by the media. No arbitrary exercise of power should intervene to prevent the attainment of justice. Instead of passing the impugned order, the Government should have ordered an independent probe. The Bench said that no case was examined, not even from a prima facie angle to find out whether there was any substance in the media exposure. None examined the likely impact of the en masse cancellation. After the allotments many had resigned their jobs, had taken huge loans; many were SCs/STs, war widows and those whose near relation had died as a result of terrorist activities. The Bench wondered "how could all those large number against whom there was not even insinuation could be clubbed with a handful of those who were said to have been allotted these dealerships on account of political connection and patronage. The two were clearly unequals. The rotten apples cannot be equated with good apples". "The solution resorting to cancellation of all was worse than the problem. Cure was worse than the disease. To put both the categories of tainted and the rest at par is wholly unjustified, arbitrary, unconstitutional being violative of Article 14 of the Constitution''. The judges said the notification had the twin effect of scuttling the probe and depriving a large number of others of their livelihood that had been ensured for them after due selections pursuant to a welfare policy of the Government. The public had a right to know the circumstances under which their elected representatives got the outlets and/or dealerships. Giving a clean chit to the media, the Bench said if a hue and cry was made that certain allotments had been made to MPs, MLAs or their wives or relations, the public, media and the Opposition would be justified in raising the eyebrow. "The mere reason that a controversy has been raised by itself cannot clothe the Government with the power to pass such a drastic order which has a devastating effect on a large number of people," the Bench said. The Bench held that the impugned action was clearly against fair play, unreasonable, arbitrary and taken without application of mind. The Bench directed the Petroleum Ministry, the Union Government and the four oil companies to render full, complete and meaningful assistance and cooperation to the committee and produce before it all the relevant records within five days. The Ministry was directed to appoint a Nodal Officer not below the rank of a Joint Secretary for the purpose. If the committee, on preliminary examination, formed an opinion that the allotment was made on merit, it would be open to the committee not to proceed with the probe in detail. A copy of this judgment was directed to be sent to all the High Courts so that the writ petitions, if any, pending there could be disposed of in terms of this order.
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