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Judgment
Leave granted.
Heard learned Counsel for the parties.
Briefly stated facts are, that the Dealer Selection Board selected certain candidates for appointment as agents for LPG distribution. In the select list prepared by the Selection Board, Smt. Veena Rani Singh was shown at No. 1. Mr. Anil Kumar Singh was placed as No. 2. Some other persons were shown below them in the select list. Accordingly, the agency was allotted to Smt. Veena Rani Singh by the Indian Oil Corporation.
Mr. Anil Kumar Singh filed a writ petition challenging the allotment of agency to Smt. Veena Rani Singh on the ground that she was not a resident of Babura. This ground found favour with the learned Single Judge who allowed the writ petition. A direction was also issued that the agency should be given to the Petitioner as he was No. 2 in the select list. Smt. Veena Rani Singh filed a appeal. Pending that appeal an agency, in some of the locality, was granted to her husband. Therefore, pending the appeal, Smt. Veena Rani Singh incurred a further disqualification which prevented any agency to be given her. When the appeal readied hearing, after ascertaining that an agency was given to her husband by Bharat Petroleum Limited, she made a statement that she would not press of an agency to be given in her favour. However, the appeal was still pressed qua the directions regarding allotment to Mr. Anil Kumar Singh. The appellate Court by the impugned judgment set aside the direction of the learned Single Judge and directed the Indian Oil Corporation to issue fresh publications/notices for the purposes of allotment of agency. The appellate Court directed the Dealer Selection Board to select the best candidate in accordance with the policy and law. Hence this appeal.
On behalf of Respondents reliance is placed on a judgment of this Court dated 18th November, 2002 in Civil Appeal arising out of SLP 9266/2002 wherein on a selection being set aside this Court has directed fresh publication for a fresh allotment. It was submitted that the impugned order is in consonance with the order of this Court and hence he should not interfere. In our view, this judgment has no relevance to the facts of this case. In that case the selection was set aside on the ground of illegality and infirmities in the manner and method of assessment and award of marks. There are no such findings in this case. In this case cancellation of agency of Smt. Veena Rani Singh was sought on the ground that she was not qualified. This case is more in consonance with the judgment of this Court dated 23rd August, 1995 in Civil Appeal arising out of SLP (C) No. 15191/1994. In that case on identical facts a three Judges Bench has held that once the person to whom the allotment was made has become ineligible, the distributorship must be awarded to the person who is 2nd in the merit list.
It is, however, pointed out to us that, under the dealers selection manual if the first person in the selection list is found ineligible then the matter would be referred by the ED/JM of the concerned oil company to the Chairman of the Dealers Selection Board, who will take a decision on issuance of Letter of intent to the second empanelled candidate. The Indian Oil Corporation would be at liberty to follow this procedure. However, we add that the normal practice should be that unless and until there is some disqualification of special reason for not doing so an allotment would be made by the Dealers Selection Board to the second empanelled candidate.
The direction in the impugned order to hold fresh selection is set aside. The appeals are accordingly allowed. There will be no order as to costs.