Authority: Calcutta High Court, Circuit Bench at Jalpaiguri

Order Date: 01 July 2026

Case Overview

  • Petition: Arup De (petitioner) vs. Indian Oil Corporation Limited and others (respondents).
  • Background: LPG distributorship for Dhupguri Municipality area was originally granted to M/s. Bimala Gas Service (a partnership firm). Indian Oil terminated that distributorship, which was later restored by the Supreme Court in SLP (Civil) Diary No. 31111 of 2019, order dated 27 September 2019.
  • Following the Supreme Court order, Indian Oil abandoned the selection process initiated by its advertisement dated 31 August 2017 for the Dhupguri area; the petitioner’s application was not considered.
  • The petitioner filed WPA 25024 of 2018, dismissed by a Coordinated Bench on 11 July 2025, holding that with Bimala Gas Service’s distributorship restored, there was no occasion to consider his application.
  • The present writ petition (WPA 806 of 2026) is the second litigation by the petitioner, who now seeks a second LPG distributorship in the same area, arguing that Bimala Gas Service has reached the Ministry of Petroleum and Natural Gas guideline limit of 10,000 cylinders per month.
  • The petitioner cited a Right to Information reply from Indian Oil but the Court noted that the decision to appoint a second distributorship lies solely with Indian Oil, subject to applicable selection guidelines; the Court cannot direct the appointment.
  • The Court observed that unless Indian Oil consciously decides to create a second distributorship and issues a fresh advertisement, the petitioner has no enforceable right to allocation.
  • The petitioner also raised that the security deposit of Rs 50,000 paid with his 2017 application has not been refunded.

Final Outcome

  • The Court found no justification to entertain the writ petition and dismissed WPA 806 of 2026.
  • It clarified that if Indian Oil later decides to appoint a second LPG distributorship in accordance with the guidelines, the petitioner may apply under the new advertisement.
  • The Court directed Indian Oil Corporation Limited to refund the security deposit of Rs 50,000 to the petitioner within four weeks from the communication of this order, with interest at 6% per annum from the date of deposit until actual refund, as per the direction dated 11 July 2025 in WPA 25024 of 2018.

Topics: LPG Distributorship, Legal Judgment