# COMMON CAUSE, A REGISTERED SOCIETY v. UNION OF INDIA AND OTHERS

- **Citation:** [1996] Supp. 6 S.C.R. 719
- **Court:** Supreme Court of India
- **Decided:** 1996-09-25
- **Bench:** Kuldip Singh, Faizan Uddin
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/common-cause-a-registered-society-v-union-of-india-and-others-14786
- **Pages:** 38

## Headnote

Constitution of India-A1ticles 14, 32 and 298-Ministei~A/lotment of
retail outlets for petroleum products (Petrol Pumps) under discretionary
quota-All the allotments made in favour of persons related to
politicians/members of Oil Selection Boards/Officials in the Minisll)~Allot
ments made in a cloistered and stereotyped manner without any guidelines or
critelia-Held, arbitra1y, disC1iminat01y, malafide and illegal-Exercise of discretion must be transparent, just, fair and non-arbitrwy in accordance with
A
B
c
set no11113~ clitelia or guideline3~Minister holds position of a tntstee of public
prope1ty in his charge and discretion-Arbitra1y allotments of such property D
amount to breach of llust-Hence, liable to be set aside-Directions issued.
Constitution of lndia-A1ticle 14-Allotments of petrol pumps by a
Minister under his discretiona1y quota in an arbitrary mannel'--No guidelines
fol/owed-Held, A1ticle 14 pennits a reasonable classification having a rational nexus to the object sought to be achieved-It does not pennit to pick and E
choose arbitralily out of several persons failing in the categ01y.
Public Servant-Discharge of ftmctions-Malafide acts-Personal
liability of-Held, is in a position of a tmstce in respect of public prope1ty
under his charge and discretion-Must distlibute ill a bonafide manner and
in con[ ormity with law-Should be held personally responsible for his F
malafide acts in the discharge of his ftmctions as Public Se1vant for he betrays
the tntst reposed in him by the people under the Constitution.
The then Minister of State for Petroleum and Natural Gas, while
exercising the powers of the Central Government made the allotments of G
retail outlets for petroleum products (petrol pumps) to fifteen persons
under the discretionary quota.
Two of the allottees were the sons of politicians and seven of the
allottees were related to the members of Oil Selection Boards (OSBs) or
the members themselves and remaining six allottees were the relatives of H
719
720
SUPREME COURT REPORTS (1996) SUPP. 6 S.C.R.
A
the officials in the Petroleum Ministry. All the fifteen allottees mentioned
in their applications for the allotment th.e reasons for compassionate
grounds for allotment, such as unemployment, poverty etc. among other
grounds. There was no advertisement issued to invite the applications. The
applications were not received officially by the Ministry. There was no
B receipt entry on any of the applications. Nobody had the knowledge of
number of petrol pumps available for allotment. l'!o criteria was fixed, no
guidelines were kept in view. The applicants seemed to have approached
the Minister directly.
The petitioner had originally challenged the corruption in various
C fields of public life in a public interest petition. During its pendency, when
the petitioner brought to the notice of the court a news item appeared in
a national daily regarding the allotments of retail outlets for petroleum
products (petrol pumps) by the Minister of State for Petroleum and
Natural Gas, exercising the powers of Central Government, the Court took
D cognisance of it and a notice was issued on the petition.
Disposing of the writ petition, this Court
HELD : 1.1. The orders allotting the petrol pumps to fifteen persons
are quashed. Allocation and allotment of petrol pumps/retail outlets
E dealerships by the Government of India, Indian Oil Corporation Ltd. or
any other Corporation in their names shall stand cancelled with immediate
effect .. · Those who have commissioned the petrol pumps and are running ·
the same shall stop operating the petrol pumps and running the said
business. The Government of India/Oil Corporation (concerned) shall take
F
over the petrol pump premises from these persons. The Oil Corporation
shall have the market value of the site and the construction thereon,
determined in a fair and just manner. Each of the commissioned petrol
pumps so taken over shall be disposed of by way of public auction. The
original allotte

## Text

_Characters 0–39,999 of 74,659. This is a partial read: ask again with offset=39999 for what follows._

COMMON CAUSE, A REGISTERED SOCIETY
v.
UNION OF INDIA AND OTHERS
SEPTEMBER 25, 1996
[KULDIP SINGH AND FAIZAN UDDIN, JJ.]
Constitution of India-A1ticles 14, 32 and 298-Ministei~A/lotment of
retail outlets for petroleum products (Petrol Pumps) under discretionary
quota-All the allotments made in favour of persons related to
politicians/members of Oil Selection Boards/Officials in the Minisll)~Allot
ments made in a cloistered and stereotyped manner without any guidelines or
critelia-Held, arbitra1y, disC1iminat01y, malafide and illegal-Exercise of discretion must be transparent, just, fair and non-arbitrwy in accordance with
A
B
c
set no11113~ clitelia or guideline3~Minister holds position of a tntstee of public
prope1ty in his charge and discretion-Arbitra1y allotments of such property D
amount to breach of llust-Hence, liable to be set aside-Directions issued.
Constitution of lndia-A1ticle 14-Allotments of petrol pumps by a
Minister under his discretiona1y quota in an arbitrary mannel'--No guidelines
fol/owed-Held, A1ticle 14 pennits a reasonable classification having a rational nexus to the object sought to be achieved-It does not pennit to pick and E
choose arbitralily out of several persons failing in the categ01y.
Public Servant-Discharge of ftmctions-Malafide acts-Personal
liability of-Held, is in a position of a tmstce in respect of public prope1ty
under his charge and discretion-Must distlibute ill a bonafide manner and
in con[ ormity with law-Should be held personally responsible for his F
malafide acts in the discharge of his ftmctions as Public Se1vant for he betrays
the tntst reposed in him by the people under the Constitution.
The then Minister of State for Petroleum and Natural Gas, while
exercising the powers of the Central Government made the allotments of G
retail outlets for petroleum products (petrol pumps) to fifteen persons
under the discretionary quota.
Two of the allottees were the sons of politicians and seven of the
allottees were related to the members of Oil Selection Boards (OSBs) or
the members themselves and remaining six allottees were the relatives of H
719
720
SUPREME COURT REPORTS (1996) SUPP. 6 S.C.R.
A
the officials in the Petroleum Ministry. All the fifteen allottees mentioned
in their applications for the allotment th.e reasons for compassionate
grounds for allotment, such as unemployment, poverty etc. among other
grounds. There was no advertisement issued to invite the applications. The
applications were not received officially by the Ministry. There was no
B receipt entry on any of the applications. Nobody had the knowledge of
number of petrol pumps available for allotment. l'!o criteria was fixed, no
guidelines were kept in view. The applicants seemed to have approached
the Minister directly.
The petitioner had originally challenged the corruption in various
C fields of public life in a public interest petition. During its pendency, when
the petitioner brought to the notice of the court a news item appeared in
a national daily regarding the allotments of retail outlets for petroleum
products (petrol pumps) by the Minister of State for Petroleum and
Natural Gas, exercising the powers of Central Government, the Court took
D cognisance of it and a notice was issued on the petition.
Disposing of the writ petition, this Court
HELD : 1.1. The orders allotting the petrol pumps to fifteen persons
are quashed. Allocation and allotment of petrol pumps/retail outlets
E dealerships by the Government of India, Indian Oil Corporation Ltd. or
any other Corporation in their names shall stand cancelled with immediate
effect .. · Those who have commissioned the petrol pumps and are running ·
the same shall stop operating the petrol pumps and running the said
business. The Government of India/Oil Corporation (concerned) shall take
F
over the petrol pump premises from these persons. The Oil Corporation
shall have the market value of the site and the construction thereon,
determined in a fair and just manner. Each of the commissioned petrol
pumps so taken over shall be disposed of by way of public auction. The
original allottee may also participate in the auction. The petrol pump shall
G be allotted to the highest bidder. Out of the auction money the value of the
site and the construction as determined by the Oil Corporation shall be
paid to the original allottee ·and the remaining money shall go to the
Government coffer. Prosecution proceedings shall be initiated against the
Minister for criminal breach of trust or any other offence under law and
also he shall be made liable to pay damages for his malafide action in
H allotting petrol pumps to the fifteen persons. (754-C-H, 755-A-C]
COMMON CAUSE v .. U.0.1.
721
1.2 The allotments have been made by the Minister either on the A
ground of poverty or unemployment. Assuming that the allottees belong to
either of these two categories then how the Minister has selected them out
of millions of poor and unemployed in this country. All the 15 allotments
have been made by the Minister in a stereotyped manner. The applications
have not been officially received by the Petroleum Ministry. There is no B
receipt-entry on any of the applications. The applicants. seem to have
approached the Minister directly. None of the applications have been dealt
with in any of the branches of the Ministry. There is nothing on the record
to indicate that the Minister kept any criteria in view while making the
allotments. How the applicants came to know about the availability of the
petrol pumps is not known. No advertisement was made to invite the C
applications. There is nothing:on the record to show that any other method
of inviting applications was adopted. There is no indication in the allotment orders or anywhere in the record to show that the Minister kept any
guidelines in view while making these allotments. None knew how many
petrol pumps were available for allotment. The allotments have been made D
in a cloistered manner. The petrol pumps public property have been doled
out in a wholly arbitrary and discriminatory manner. [750-D]
1.3. It is obvious that the Minister was personally interested in
making allotments of petrol pumps in favour of all these 15 persons. He
made allotments in favour of relations of his personal staff under the E
influence of the staff on wholly extraneous considerations. The allotments
to the sons of Ministers were only to oblige the Ministers. The allotments
to the members of the Oil Selection Boards and their/Chairman's relations
have been done to influence them and to have favours from them. All these
allotments are wholly arbitrary, nepotistic and are motivated by exp
traneous considerations. [751-B-C]
2.1. Capt. Satish Sharma acted in a wholly biased manner in as much
as he unfairly regarded with favour the cases of 15 allottees before him.
There is no justification whatsoever to pick up these persons except that
they happen to have won the favour of the Minister on malafide consideraG
tions. The exercise of discretion was wholly arbitrary. Such a discretionary
power which is capable of being exercised arbitrarily is not permitted by
Article 14 of the Constitution of India. While Article 14 permits a
reasonable classification having a rational nexus to the objective sought
to be achieved, it does not permit the power to pick and choose arbitrarily H
722
SUPREME COURT REPORTS [1996] SUPP. 6 S.C.R.
A
out of several persons falling in the same category. A transparent and
objective criteria/procedure has to be evolved so that the choice among the
members _belonging to the same class or category is based on reason, fair
play and non-arbitrariness. It is essential to lay down as a matter of policy
as to how preferences would be assigned between two persons falling in the
B
c
same category. Lack of transparency in the system promotes nepotism and
arbitrariness. It is absolutely essential that the entire system should be
transparent right from the stage of calling for the applications upto the
stage of passing the orders of allotment. The names of the allottees, the
orders and the reasons for allotment should be available for public
knowledge and scrutiny. [751-G, 752-D-G]
2.2. The Minister has acted in utter violation of the law laid down b)
this court and has also infracted Article 14 of the Constitution of India. A
Minister in the Central Government is in a position of a trustee in respect
of the public property under his charge and discretion. The Petrol
pumps/gas are a kind of wealth which the Government must distribute in
D a bonafide manner and in conformity with law. The Minister has betrayed
the trust reposed-in him by the people under the Constitution. It is high
time that the public servants should be held personally responsible for
their malafide acts in the discharge of their functions as public servants.
The Minister shall show-cause within two weeks why he should not be made
E
liable to pay damages for his malafide action in allotting petrol pumps to
the fifteen persons. [753-D-E]
F
G
3.1. The allocation/allotment of the petrol pumps/retail outlet dealerships by the Government of India, Indian Oil Corporation Ltd., in the
names of fifteen persons shall stand cancelled with immediate effect. The
Government of India/Oil Corporation shall take over within ten days the
petrol pump premises from those persons who have not commissioned
them. As far those commissioned the petrol pumps, they shall stop operating them. Each of the commissioned petrol pumps, taken over by the
Governurnt/Oil Corporation shall be disposed of byway of public auction.
[754-G]
CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 26 of
1995.
(Under Article 32 of the Constitution of India.)
H
H.D. Shourie, In-person for the Petitioner.
COMMON CAUSE v. U.O.I. [KULDIP SINGH, J.]
723
Kapil Sibal for the petitioner in W.P. No. 26/95.
Prashant Bhushan for Jayant Bhushan for the Petitioner in T.P. (C)
No. 127/96.
A
Altaf Ahmed, Additional Solicitor General, P.P. Malhotra, H.L.
Agrawal, K.N. Bhatt, A.B. Rohtagi, S.C. Maheshwari, B.K. Prasad, Navin B
Prakash, Krishan Mahajan, T.V. Ratnam, D.S. Mehra, Anil Katiyar, K.K.
Gupta, Sanjeev Bansal, Pramod Dayal, A.K. Mahajan, Ms. Sandhya Goswami, Ms. H.Wahi, Ms. N. Mukherjee, T. Sridharan, Tufail A. Khan, Rajiv
Nanda, A.K. Goel, Mrs. Sheela Goel, K. Swamy, (Piyush), Ved Prakash,
Goodwill Indeevar and Rajesh K. Sharma, for (Pradeep Kumar and Gulam C
Ahmed Mia), D.M. Nargolkar, D.K. Sinha, K.R. Nagaraja, S.K. Agnihotri,
S.A. Syed, G.K. Bansal, Ms. Kirti Misra, N.K. Sharma, S. Kulshreshthra,
Pramod Dayal, S.K. Bisaria, J.M. Khanna and S.M. Ashri for the Respondents.
The Judgment of the Court was delivered by
D
KULDIP SINGH, J. The allotments of retail outlets for petroleum
products (the petrol pumps), by Capt. Satish Sharma, Minister of State for
Petroleum & Natural Gas, exercising the powers of the Central Government, have been challenged in this public interest petition under Article 32 E
of the Constitution of India. The petition as originally filed was directed
against corruption in various fields of public life. Mr. H.D. Shourie -
Director "Coinmon Cause" - appearing in person, invited this Court's
attention to a news item dated August 11, 1995, on the front page of "Indian
Express" under the caption ''In Satish Sharma's Reign, Petrol and
Patronage Flow Together". The solicitor general who was present in Court, F
took notice of the news item and stated that he would have the matter
examined in the Ministry concerned and file an affidavit giving Ministry's
response to the news item. The news item, inter alia, stated as under :
"Not only the relatives of most of the officials working for Captain G
Satish Sharma but even his own driver and the driver of his
additional Private Secretary have been allotted a petrol pump and
a gas agency respectively.
The wives of two clerks and a stenographer in the Ministry have
similarly been allotted petrol pumps. Some of these allotments H
724
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SUPREME COURT REPORTS [1996] SUPP. 6 S.C.R.
. have been made from the discretionary quota with the Petroleum
Minister while others have been made through a1l ostensibly objective selection process undertal,(en by the Oil Selection Boards
(OSBs) .......... A Mr. Poda Rajshekar, a relative of Mr. G.
Gurusharan, :Private Secretary to Captain Sharma has been allotted
a petrol pump at Banjara Hills, Hyderabad out of the Minister's
discretionary quota taking pity on the "financictl circumstances that
the family finds itself in."
Ms. Madhuri Safaya, a relation of the Additional Private
Secretary to the Minister, Mr. V.N. Safaya has been allotted a
petrol pump "on compassionate grounds" from the discretionary
quota.
Another relation of Mr. Safaya, Mrs. Monica Malla, has als\l
been a beneficiary of a petrol pump, courtesy Captain Sharina.
Mrs. Daya Rani, wife of Mr. Hari Ram Verma, personal
assistant to the Additional PS to the Minister, Mr. V.N. Safaya,
· was allotted a petrol pump out of the discretionary quota ......... .
Mrs. Vijaya Nair, wife of Mr. D.V. Pillai, another additional Private
secretary to Captain Sharma has been allotted a petrol pump on
the grounds that the "applicant is a young unemployed (woman)
. with the responsibility of looking after a large family" - hardly a
unique classification m this country of 900 million. ......... The
Chairman of the OSB for Uttar Pradesh is Justice S.H. Abidi
(retd.) who lives at 50, Dariyabad, Allahabad. It so happens that
Syed Shaukat Hasan Abid~ his son, living at 50/1, Daryabad,
Allahabad put m a request and was allotted a petrol pump on
"compassionate grounds" at Fatehpur (80 km Mile Stone) m Uttar
Pradesh.
A former MLA, Mr. Shiv Balak Passi, from Rae Bareli is a
member of the OSB for Madhya Pradesh and his job is to allot
petrol pumps to others. He too had put in a request for the
discretionary allotment of a petrol pump. Lo and behold, on
·"compassionate grounds" he was immediately allotted a petrol
pump o~ the Rae Bareli-Lucknow Road in UP.
Mr. Krishna Swaroop, a Congress party worker and resident ·
COMMON CAUSE v. U.O.I. [KULDIP SINGH, J.]
725
of 1817, Punjabi Bagh Extension, New Delhi-26 is a member of A
the OSB for Delhi and Chandigarh. His son, Mr. Pradeep Kuinar,
was favoured with a petrol pump by the Minister on the grounds
that "the applicant is a young man from· Scheduled Caste Community with no source of regular income. The case deserves sympathetic consideration. Therefore, a retail Outlet for MS-HSD in
the Union Territory of Delhi is allotted to Shri Pradeep Kumar,
r/o 18/7, Punjabi Bagh Extension, New Delhi-110026."
Mr. Ghulam Ahmed Mir is also a member of the OSB for Delhi
and Chandigarh. An application was made by him for the allotment
B
of a petrol pump. And the Minister passed the order on "compasC
sionate grounds" from his discretionary quota.
Similarly the following OSB members, either themselves or
their next of kin:, have been allotted petrol pumps : Mr. K.L.
Sharma (Member OSB, West Bengal), Mr. R.S. Nautiyal (Member
OSB, Punjab), and Mr. Harbanslal Gupta (member OSB, D
Haryana). Two relations of Mrs. Satya Bahen (Member OSB,
Haryana) were allotted a gas agency in Etah and a petrol pump
at Itmadpur near Tundla, respectively.
The son of a former Home Minister who is currently a Cabinet E
Minister; the son of a present Minister of State from the North
East; the brother-in-law of a former Janata Dal office-bearer and
now a Congressman from Eastern UP; the son of a Dalit leader
who was with the late H.N. Bahuguna at one time and is now in
the Congress; the son of a former Congress Councillor of the
Municipal Corporation of Delhi; the wife of an ex-Congress MP F
·from the UP. hills; the wife of a prominent Dalit leader in the
Opposition and several political hacks from Ainethi are among the
hundreds who have been gifted petrol pumps or gas agencies
during the tenure of Captain Satish Sharma as the Petroleum
Minister."
G
Mr. Vijay L. Kelkar, Secretary in the Ministry of Petroleum and Natural
Gas, Government of India, filed affidavit dated October 9, 1995. The
relevant part of the affidavit is as under : -
"It may be relevant to point out here that under the approved H
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726
SUPREME COURT REPORTS (1996] SUPP. 6 S.C.R.
Guidelines, the Hon'ble Minister personally decides each case and
the order is a speaking order. An unsuccessful applicant in the
same category is entitled to have a copy of the order if a request
is made for it.
The specific instances referred to in the Indian Express
newspaper dated 11th August, 1995, appear to relate to allotments
made prior to the order of this Hon'ble Court dated 31st March,
1995. However, those allotments also were made on merits of each
case as appearing from the applications which contained the circumstances under which the request was made. For the cases
mentioned in the newspaper report, it is denied that the allotments
were made on account of alleged- relationship and/or any improper
motive. The relationship of an applicant with any official of the
Ministry has not been a relevant-factor in considering discretionary
allotment on compassionate grounds. Should this Hon'ble Court
direct, the relevant files shall be produced for persual for this
Hon'ble Court."
This Court examined the affidavit of Mr. Kelkar on October 13, 1995 and
_ passed the following order :
"Mr. Vijay L. Kelkar, Secretary in the Ministry of Petroleum and
Natural Gas, Government of India has filed an affidavit pursuant
to this Court's order dated August 11, 1995. Without commenting
on the affidavit, we direct the Ministry of Petroleum and Natural
Gas to file a further and better affidavit within two weeks with
reference to the specific instance~."
Pursuant to the above quoted order Mr. Kelkar filed affidavit dated
October 28, 1995. The relevant part of the affidavit is as under :
"That the Deponent, in compliance with the said order dated 13th
October, 1995, has ascertained the position regarding the allegations that allottees under the discretionary quota are related to
various political leaders, officials and members of Oil Selection
Boards {OSBs) or the members themselves. Such allottees can be
grouped under three different categories and allegation regarding
each one of them is answered and/or dealt with as follows :
COMMON CAUSE v. U .O.I. [KULDIP SINGH, J.]
727
A ALLOTIEES SAID TO BE RELATED TO POLITICIANS. A
(i) With reference to the allegation that the son of a former Home
Minister, who is currently a Cabinet Minister, has been allotted a
Petrol Pump, .............. It is correct that the allottee, Shri Sarbjot
Singh is the son of the said Shri Buta Singh.
(ii) with reference to the allegation that the son of a present
Minister of State from North-East, has been allotted a petrol
pump. ......... It is correct that the said allottee is the son of a
Minister namely, Shri K. Hollahan, in the State Government of
Nagaland.
B. ALLOTIEES SAID TO BE RELATED TO THE MEMBERS
OF OSBs OR THE MEMBERS THEMSELVES.
B
c
(i) With reference to the allegation that Shri Syed Shaukat Hasan
Abidi is the son of Justice S.H. Abidi (retd.), who is the Chairman . D
of the OSB for U ttar Pradesh ....................... Discretionary allotment
was made in favour of the applicant in January, 1995. It is correct
that the said allottee is the son of the said Chairman of OSB for
U.P.
(ii) With reference to the allegation that Shri Shiv Balak Passi is E
a member of the OSB for Madhya Pradesh and he is himself an
allottee from discretionary quota, .......... A discretionary allotment
was sanc:tioned in his favour in December, 1994. It is correct that
Shri Passi is a Member of the OSB for Madhya Pradesh.
(iii) With reference to the allegation that the allottee, Shri Pradeep
Kumar, is the son of Shri Krishna Swaroop who is a Member of
OSB for Delhi and Chandigarh, ............... It is correct that the
allottee is the son of the said Shri Krishna Swaroop.
F
(iv) With reference to the allegation that the allottee, Shri Ghulam G
Ahmad Mir is a Member of OSB for Delhi and Chandigarh, .......... .
It is correct that Shri Mir is a Member of the OSB, Delhi.
(v) With reference to the allegation that Shri R.S. Nautiyal, who
is a Member of OSB, Punjab, has been allotted a Petrol Pump
either in his own name or in the name of his next of kin, it is stated H
7'2J!,
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SUPREME COURT REPORTS [1996] SUPP. 6 S.C.R.
that Smt. Neena Nautiyal, made an application in August, 1994.
....... It is correct that Smt. Neena Nautiyal is the wife of Shri R.S.
Nautiyal, a Member of OSB, Punjab.
(vi) With reference to the allegation that a Petrol Pump was
allotted to Shri Justice Harbanslal Gupta, a Member of OSB,
Haryana, in his own name or in the name of his next of kin, it is
stated that one Shri Arun K. Gupta made an application in September, 1993, ....... It is correct that Shri Arnn Kumar Gupta is the
son of Shri Justice Harbanslal Gupta (Retd.) who is the Chairman
of the OSB, Haryana.
(vii) With reference to the allegation that two relations of Smt.
Satya Bahin, a Member of the OSB for Haryana, were allotted a
Gas Agency and a Petrol Pump, it is stated that one Shri Dharmesh
Kumar made an application in September, 1994, ..... Along with
D
his application there was a recommendation for discretionary
allotment from Smt. Satya Bahin, Ex Member of Parliament... .... It
is stated that the relationship of Shri Dharmesh Kumar with Smt.
Satya Bahin is not known.
E
C. ALLOTTEES WHO ARE SAID TO BE RELATED TO
VARIOUS OFFICIALS IN THE MINISTRY.
F
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(i) The allegation is that relatives of the Drivers of the Minister
and of the Additional Private Secretary to the Minister have been
allotted Petrol Pump and Gas Agency. It has been found that one
Smt. Leela Devi,· \vife of late Shri Kishan Swaroop made an
application that her husband was brutally murdered on 25.1.1994,
she had no means of income to support her family and that she
belonged to a Scheduled Caste. A retail outlet was allotted to Smt.
Leela Devi on compassionate grounds from the discretionary quota
in May, 1995. It has now been ascertained that Smt. Leela Devi
happens to be a relative of a ·Driver of the Minister.
(ii) With reference to the allegation that Shri Poda Rajasekhar is
a relative of Shri G. Gurucharan, Private Secretary to the Minister
of State, it is stated that an app~cation was made by Shri Rajasek-
COMMON CAUSE v. U.O.I. [KULDIP SINGH, J.]
729
har in July, 1993, ..... A retail Outlet Dealership for MS-HSD at A
Secunderabad was sanctioned to Shri Rajasekhar on compassionate grounds. It has been ascert:fined that the said allottee is a
relative of the said Shri Gurucharan.
(iii) With reference to the allegation that Ms. Madhuri Safaya is a
relative of Shri B.N. Safaya, Additional Private Secretary to the B
Minister, to whom a Retail Outlet has been allotted, ......... It has
been ascertained that she is related to the said Shri B.N. Safaya.
(iv) With reference to the allegation that Ms. Monica Malla is also
related to Shri B.N. Safaya, ....... A Retail Outlet was allotted to C
her in November, 1994 out of discretionary quota. It has been
ascertained that the said Ms. Malla is related to the wife of Shri
B.N. Safaya.
(v) With reference to the allegation that the allottee, Mrs. Daya
Rani, is the wife of Shri H.R. Verma, Personal Assistant to the D
Additional Private Secretary to the Minister, Shri B.N. Safaya, .....
It is correct that the allottee is the wife of Shri H.R. Verma.
(vi) With reference to the allegation that Mrs. Vijaya Nair, who
has been sanctioned a Retail Outlet, is that the wife of Shri D.V.
· Pillai, Additional Private ~ ecretary to the Minister of State, ........ It E
has been ascertained that Mrs. Vijaya Nair is not the wife of Shri
D.V. Pillai, but she is related to him".
This Court issued notice to all the 15 persons mentioned in the affidavit of
Mr. Kelkar. Thirteen, out of them filed affidavits justifying the allotments
of petrol pumps made to them by Capt. Satish Sharma.
This Court by the order dated December 6, 1995 directed that "the minister
may, if he so desires, file an affidavit in this regard". Capt. Satish Sharma
has, however, not chosen to file any affidavit.
The relevant records have been produced before us.
Mr. Sarbjot Singh in his application mentioned that he was a commerce graduate belonging to the scheduled caste community. He completed graduation in the year 1991. He was iiiterested in sports (shooting)
F
G
and won awards at the national level. Because of his pre-occupation with H
730
SUPREME COURT REPORTS [1996) SUPP. 6 S.C.R.
A the sports, he had average academic record and as a, consequence could
not get admission to any professicnal courses. He further stated that in
spite of his best efforts he could not get any suitable employment for
supporting himself and as such a petrol pump in Delhi be allotted to him.
The file does not indicate how the application was entertained. There is
B no receipt/entry on the application. No official/officer has examined the
application before the Minister's order. There is nothing to show that any
guide-lines were kept in view. The application, obviously, was given by hand
to the Minister, who readily passed the allotment order. There is a separate
sheet containing the order of the Minister which is as under :
c
D
E
F
G
H
"Office of the Minister of State
(P&NG)
**********
Placed below is an application of Shri Sarbjot Singh for allot-
. ment of a retail Outlet dealership for MS-HSD. The applicant has
stated that he is a graduate without any suitable employment.
Submitted for kind orders.
Minister
Sd/-
(G. Gurucharan)
PS to MOS (P&NG)
31/1
I have examined the application carefully. The applicant is an
unemployed graduate and a sportsman who participated in national level competitions. The applicant has not been able to get any
gainful employment and is unable to support himself. The case
deserves sympathetic consideration. Therefore, a Retail Outlet for
MS-HSD in the National Capital Territory of Delhi is allotted to
Shri Sarbjot Singh r/o 16, Ashok Road, New Delhi.
Orders may be issued accordingly.
Sd/-
(Capt. Satish Sharma)
COMMON CAUSE v. U.0.1. [KULDIP SINGH, J.]
731
Minister of State" A
Thereafter, the matter was processed in the office and in one of the notes
by an officer of the Ministry it was mentioned that the allottee " is son of
Shri Buta Singh, Minister of Civil Supplies". No one took notice of this fact
and the allotment order was issued.
In all the cases discussed hereinafter the pattern of allotment and the
method and procedure followed was the same as in Sarbjot Singh's case.
Benjamin K. Hollohon stated in his application that he was an
educated unemployed youth and also active party worker in the area. He
belonged to scheduled tribe from Nagaland State. He requested in the
application for allotment of petrol pump in Purana Bazar area of Dimapur
town, Nagaland. The application was sent to Captain Satish Sharma by Mr.
K. Hollohon, Minister, Industry and Commerce, Nagaland (Father of the
applicant) along with a d.o. letter which reads as under :
"My dear Capt. Satish Sharma,
B
c
D
Kindly recall our discussions of date regarding allotment of one
retail outlet petrol pump (petrol & Diesel) in the Purana Bazar
area of Dimapur town in Nagaland in favour of my son Benjamin E
K. Hollohon.
As you may be aware. that Benjamin's application and my
earlier note in this regard are available in your Ministry. However,
I am again enclosing copy of Benjamin's application for your
~mtl
F
It was indeed pleasure to note that you have very kindly agreed to
allot one petrol pump in favour of my son Shri Benjamin after
careful and due consideration as a very very special case. I shall
personally grateful if you cou1d kindly me your good offices in
issuing suitable instructions to the officials concerned in your G
Ministry so that the possible bureaucratic delays are averted and
the permit is issued without much loss of time. Therefore, I request
your personal intervention in the matter. I hope, you can very well
appreciate may predicament in the matter and am sure, you will
&~~~
H
732
SUPREME COURT REPORTS [1996] SUPP. 6 S.C.R.
A The allotment order by the Minister is reproduced hereunder :
B
c
D
E
F
"Office of the Minister of State
(P&NG)
***************
Placed below is an application of Shri Benjamin K. Hollohon
for allotment of a retail outlet for MS-HSD. The applicant has
stated that· he is an unemployed youth belonging to Scheduled
Tribe community. The applicant has also stated he no regular
source of income.
Submitted for kind orders.
Minister
Sd/-
(G. Gurucharan)
PS to MOS (P&NG) -
10/10/94
I have examined the application carefully. The applicant is an
educated unemployed Scheduled Tribe youth without regular
source of livelihood. The case deserves sympathetic consideration.
Therefore, a Retail Outlet for MS-HSD at Purana Bazar, Dimapur,
Nagaland is allotted to Shri Benjamin K. Hollohon r/o Durgapathar, 2 1/2 Mile, Dimapur, Nagaland, Pin Code -797 112.
Necessary orders may be issued accordingly.
Sci/
(Capt. Satish Sharma)
Minister of State"
G Syed Hasan Shaukat abidi stated in his application as under :
"Respectfully I beg to state that I was born at Allahabad, Uttar
Pradesh on 20th December, 1965. I have passed B.Sc. and completed my Master's in Business Administration (specialisation in
Marketing). In spite of my best efforts. I have not been able to get
H
a suitable employment. I have no other source of income and am
. .
COMMON CAUSE v. U.0.1. [KULDIP SINGH,J.J
733
entirely dependent on my aged parents for survival. My inability A
to find employment and settle down is causing anxiety to my
parents. Hence, I would most humbly request you Sir, to grant me
a petrol pump at Fatehpur (80 Km. Mile Stone) in Uttar Pradesh."
The Minister passed the following order :
"Office of the Minister of State
(P&NG)
************
B
Placed below is an application of Shri Syed Hasan Shaukat C
Abidi for allotment of a Retail Outlet for MS-HSD. The applicant
has stated that he has completed his post Graduation in Business
Administration and has not been able to find any suitable employment. The applicant has also stated that he has no other source of
income and is· dependent on his parents for sustenance.
Submitted for kind orders .
Sd/-
(G. Gurucharan)
·n
PS to MOS (P&NG)
16;12 E
Minister
I have examined the application carefully. The applicant is a
professional qualified man without any regular employment. The
applicant has no other source of income and is entirely dependent
on his parents for support and sustenance. The case deserves
sympathetic consideration. Therefore, a Retail Outlet for MS-HSD
at Fatehpur (80 Km. Mile Stone) in Uttar Pradesh is allotted to
Shri Syed Hasan Shaukat Abidi r/o 50/1, Dariyabad, Allahabad,
Uttar Pradesh.
Orders may be issued accordingly.
Sci/-
F
G
( Capt. Satish Sharma)
Minister of State" H
734
SUPREME COURT REPORTS [1996) SUPP. 6 S.C.R.
A
It is obvious from Mr. Kelkar's affidavit that Syed Hasan Shaukat Abidi is
the son of justice S.H. Abidi (retd.) who was at that time Chairman of the
Oil Selection Board for Uttar Pradesh.
B
c
D
E
F
G
H
Shiv Balak Passi applied for allotment of petrol pump in the following words:
"I wish to state the following about myself. I am a social worker
who has devoted his entire life for the upliftment of downtrodden,
underprivileged. I have been in the forefront in all activities involving eradication of social evils. But Sir, I am growing old and am
not in a position to support myself. Therefore, Sir, with due respect
I request you to grant me a petrol pump al Lucknow-Rae Bareilley
Road, Uttar Pradesh."
The Minister passed the following order :
"Office of the Minister of State
(P&NG)
***********
Placed below is an application of Shri Shiv Balak Passi for
allotment of a Retail Outlet for MS-HSD. The applicant has stated
that he is a social worker without any regular source of income.
Submitted for kind orders.
Minister
Sd-
(G. Gurucharan)
PS to MOS (P&NG)
21/U
'
I have examined the application carefully. The applicant is an
educated unemployed who has no regular source of income due
to his serious pre occupation for the upliftment of downtr~dden.
The case deserves sympathetic consideration. Therefore, a Retail
Outlet for MS-HSDA at Rae Bareilley Lucknow Road, UP, is
allotted to Shri Shiv Balak Passi, Ex-MLA, District Rae Bareilley,
Uttar Pradesh.
~ -
COMMON CAUSE v. U.O.l. [KULDIP SINGH, J.)
735
Orders may be issued accordingly.
Sd/-
(Capt. Satish Sharma)
Minister of State"
A
Mr. Kelkar's affidavit shows that Shiv Balak Passi himself is a member of B
the Oil Selection Board for Madhya Pradesh.
Pradeep Kumar, in his application stated that he was an unemployed
young man from Scheduled Caste category with enterprise, initiative and
determination and was very keen to make petrol pump dealership as his
business. He indicated that he was appearing in B.A. (final). He further
stated that his father has been an active congress worker since 1952 and
has held many important positions in the organisation as well as on the
executive side. The following order was made by the Minister :
"Office of the Minister of State
(P&NG)
**********
Placed below is an application of Shri Pradeep Kumar for
allotment of Retail Outlet for MS-HSD. The applicant has stated
c
D
that he belongs to a Scheduled Caste Community and also an E
unemployed Under Graduate.
For kind orders.
Minister
Sd/-
(G. Gurucharan)
PS to MOS (P&NG)
2.0/6/94
F
I have examined the application carefully. The applicant is a G
young man from Scheduled Caste Community with no source of
regular income. The case deserves sympathetic consideration.
Therefore, a Retail Outlet for MS-HSD in the Union Territory of
Delhi is allotted to Shri Pradeep Kumar, r/o 18/7, Punjabi Bagh
Extension, New Delhi - 110 026.
H
736
A
SUPREME COURT REPORTS (1996) SUPP. 6 S.C.R.
Orders may be issued accordingly.
Sd/-
(Capt. Satish Sharma)
Minister of State"
B While processing the order, noting on the file is as under :
c
D
E
F
"Reference notes on pre-page. MOS i1as sanctioned a retail outlet
dealership at Delhi on compassionate grounds to Shri Pradeep
Kumar who is belonging to SC Category. He has stated in his
aplication vide p-1/c that he is appearing in BA final year. He is
son of Shri Krishna Swaroop member of OSB, Delhi. The allowances and perks of the Member of OSB exceed Rs. 5000 per month.
2. However, in view of the sanction by MOS, file is put up with a
fair sanction letter for signature, if approved.
Sd/-
27/6
Allotment of a dealership to the son of a sitting Member of the
OSB will invite adverse criticism. It will also create an avoidable
impression that govt. is influe1tcing the OSB in this manner.
Sd/-
27.6.94"
Mr. Kelkar's affidavit shows that Shri Pradeep Kumar is the son of Shri
Krishan Swaroop, who was at that time member of Oil Selection Board for
Delhi and Chandigarh. Pradeep Kumar in his application did not mention
this fact. The file indicates that despite the . noting to the effect that the
allotment would invite adverse criticism, the allotment orders were issued.
G
Mr. Ghulam Ahmad Mir in his application, addressed to the Minister, stated that due to the escalation of extremist violence in Kashmir
Valley in the recent years, it has become difficult to iead a normal life in
the Valley and as such earning a livelihood has become very difficult. He
further stated that the family was forced to sell some of the ancestral
property. He added that despite being a Graduate he could not get regular
H employment. He also stated in the application that he was aq...:active social
COMMON CAUSE v. U.0.1. (KULDIP SINGH,J.)
737
worker and had been promoting the nationalist cause in the Valley due to A
which he and his family have been facing constant threats from the militants
and extremists in the Valley. The Minister passed the following order on
the application:
"Office of the Minister of State for (P&NG)
**************
Placed below is an application of Shri Ghulam Ahmad Mir for
allotment of a Retail Outlet for MS-HSD. The applicant has stated
B
that he is a graduate from Jammu and Kashmir, who has been
forced to migrate from Kashmir as result of militant threats to his C
life. The applicant has also stated that he has no regular source of
income for maintaining his family.
Submitted for kind orders.
Sd/-
D
(G. Gurucharan)
PS to MOS (P&NG)
23/9
Minister
I have examined the application carefully. The applicant is an
unemployed graduate from Jammu & Kashmir trying to settle in
Delhi. The applicant is an active social worker espousing the
nationalist cause for which reason he and his family have become
a target of militants in the Valley. The applicant has not been able
to obtain any suitable employment in Delhi and is finding it difficult
to support his immediate family in Delhi and his parents in J ammu.
The case deserves sympathetic consideration. Therefore an 'A' site
Retail Outlet for MS-HSD in the Union Territory of Delhi is
allotted to Shri Ghulam Ahmad Mir S/o Haji Gh. Hassan Mir r/o
71-D, Pocket 'K', Sheikh Sarai-II, New Delhi.
Orders may be issued accordingly.
E
F
G
Sd/-
(Capt. Satish Sharma)
Minister of State" H
738
SUPREME COURT REPORTS (1996) SUPP. 6 S.C.R.
A While processing the Minister's order the office put up the following note
on the file:
B
c
"Ref. note above. Sh. G.A. Mir, has furnished his bio-data vide
pp 3-4/C. In his bio-data he has stated that he working as· Member
of Oil Selection Board and is getting Rs. 250 per sitting of the
Board as honorarium.
2. In view of the above, file is put up for orders whether we may
issue sanction to Oil Company for award of RO dealership, to Sh.
G.A. Mir as per sanction letter placed below if approved."
Despite the above quoted note, the allotment order was issued. Mr. Kelkar
in his affidavit has stated that Shri Mir is a member of the Oil Selection
Board for Delhi and Chandigarh.
Mrs. Neena Nautiyal addressed a three lined application to the
D Minister. It is stated in the application that she is an educated lady and
belong to Scheduled Tribe Community. Being an unemployed, she wished
to instal a retail outlet in the Union Territory. Delhi. The following order
was passed by the Minister :
E
F
G
"Office of the Minister of State (P&NG)
*******
Placed below is an application of Smt. Neena Nautiyal for
allotment of a Retail Outlet for MS-HSD. The applicant has stated
that is an educated unemployed lady from Scheduled Tribe community.
Submitted for kind orders.
Minister
Sd/-
(G. Gurucharan)
PS to MOS (P&NG)
19/8
I have examined the application carefully. The applicant is an
H
educated lady and belongs to Scheduled Tribe community. The
COMMONCAUSEv. U.0.1.[KULDIPSINGH,J.)
739
applicant is unemployed and has no regular source of income. The A
case deserves sympathetic consideration. Therefore, a Retail Outlet for MS-HSD in the Union Territory of Delhi is allotted to Smt.
Neena Nautiyal r/o B-399, Gali No. 19, Bhajanpura, Delhi.
Orders may be issued accordingly.
Sd/~
(Capt. Satish Sharma)
Minister of State"
B
While processing the Minister's order the office put up the following C
note:
"Ref. above Smt. Neena Nautiyal has furnished her bio-data
vide pp 8-7 /C wherein she has stated that her occupation is
agriculture and her and her husband's income is 25,000 & 18,000
per annum respectively. In this connection it is stated that it D
happens from her bio-data that she is the wife of Sh. Ravi Sharan
Nautiyal who is a member of OSB-Punjab.
2. In view of the above, file is put up for orders whether we may
issue sanction to Oil Company for setting up a RO dealership in
favour of Smt. Neena Nautiyal."
E
The allotment letter dated 7th October, 1994 was iss1:1ed to Neena Nautiyal.
It is admitted in the affidavit of Mr. Kelkar that Neena Nautiyal is the wife
of R.S. Nautiyal, Member, Oil Selection Board, Punjab.
Arun Kumar Gupta in his application stated that he passed BSc.