Termination of LPG distributorship due to concealments of facts: Punjab High Court.

The Punjab High Court, in M/s SRA HP Gas Agency and others v/s Union of India and others (CWP-7681 of 2017), delivered on 11th April 2023, dismissed plea on grounds of concealment of facts on citizenship. The Judgement was presided by Honorable Mr. Justice Jasgurpreet Singh Puri.


A petition was filed under Article 226/227 of the Constitution for issuance of writ of certiorari. The dealership under the name M/s SRA HP Gas Agency was terminated. Through exercising the writ, the petitioner highlighted the violation of Articles 19 and 21 as well as the circular issued by Ministry of External Affairs. The petitioner had applied for LPG distributorship through an advertisement by the respondent-corporation. Post the allocation and commission of the distributorship, a complaint against the petitioner for concealing facts from the respondent was received. According to the guidelines, it is mandatory that the applicant is an Indian citizen and a resident of India. The petitioner had also signed on the declaration stating that he is an Indian citizen and residing in India. The respondent corporation thereby issued a show cause notice for termination of distributorship. 


The Court observed that declaration of citizenship was made by the petitioner in the form as well as sworn in affidavit. There was no mention of the fact of the petitioner being an OCI. The Court further pointed that eligibility criteria consisted of two provisions:

  1. Applicant had to be a citizen of India AND
  2. The applicant had to a resident of India.

It was held that the expression ‘and’ refers to the fulfilment of both criteria in this regard. Both the conditions must co-exist for determining the eligibility of an applicant. The Court upheld the termination of agreement by the respondent-corporation.


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