M/S DEVIKA INDANE, JHARIA vs INDIAN OIL CORPORATION LTD THROUGH ITS CHAIRMAN CUM MANAGING DIRECTOR

2026:JHHC:26447

IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P.(C) No. 1209 of 2022
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M/s Devika Indane, Jharia, P.O. & P.S. Jharia, District- Dhanbad through
its proprietor namely Anup Kumar Kejriwal, S/o Shyam Kumar
Kejriwal, R/o Kejriwal House, Thana Road, P.O. Jharia & P.S. Jharia,
District- Dhanbad. … … Petitioner
Versus
1. Indian Oil Corporation Ltd. through its Chairman-cum Managing
Director, having its registered office at Indian Oil Bhavan, G-9, Ali
Yavar Jung Marg, Bandra East, P.O. Bandra East and P.S. Bandra
East, District- Mumbai, Maharashtra.
2. Chief Area Manager, Indian Oil Corporation Ltd, Marketing Division,
nd
ER, Ranchi, having its office at-Indane area office, 2 Floor, Pulsur
Plaza, Line Tank Road (Jail Road), P.O. G.P.O & P.S. Sadar, District-
Ranchi.
3. Senior Manager, Indian Oil Corporation, marketing division, ER,
nd
Ranchi, having its office at Indane area office, 2 Floor, Pulsur Plaza,
Line Tank Road (Jail Road), P.O. G.P.O & P.S. Sadar, District-Ranchi.
4. Deputy General Manager, Indian Oil Corporation, Patna, having its
office at Sipara, P.O-Sipara, P.S -Sipara, District-.Patna, Bihar.
… … Respondents
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CORAM : SRI ANANDA SEN, J.
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For the Petitioner : Ms. Prerna Jhunjhunwala, Advocate
Mr. Indrajit Sinha, Advocate

For the Respondent-IOCL : Mr. Rahul Lamba, Advocate
------

04 / 31.08.2026
By filing this writ petition, the petitioner has sought for the
following reliefs :-
i. “For issuance of appropriate writ(s)/ order(s)/
direction(s) particularly writ of mandamus calling upon
the respondents to show cause as to why regular refill
customers have not been assigned/ transfer to the
petitioner even after 5 years of memorandum of
agreement dated 08.04.2017 entered between the
petitioner and respondents.
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ii. For issuance of appropriate writ(s)/ order(s)/
direction(s) particularly a writ in the nature of
mandamus commanding upon the respondents to
forthwith transfer the customers of Jharia Circle in
favour of the petitioner in light of the circular Reference
No. SL/AKM/1606 dated 25.08.2015 issued by the
Indian Oil Corporation Limited HO, LPG sales,
wherein clause 7 (ii) provides that in case of termination
of distributorship al the registered consumers of the
particular market will be transferred to new
distributorship commissioned in that market.”

2. Heard learned counsel representing the petitioner and
learned counsel representing the respondents.

3. It is the case of the petitioner that the petitioner - M/s
Devika Indane, Jharia, was granted LPG distributorship at Jharia,
Dhanbad, pursuant to an agreement dated 08.04.2017 with Indian Oil
Corporation Limited (IOCL).
3.1.
The petitioner claims that, despite commissioning of its
distributorship, the customers of the erstwhile M/s Jyoti Jwala Gas
Agency, whose distributorship was terminated, were not transferred to
it.
3.2. Relying upon IOCL Circular dated 25.08.2015, the petitioner
contends that consumers of a terminated distributorship ought to be
transferred to the newly commissioned distributor in the concerned area.
In March 2020, about 25,600 customers of Jharia were temporarily
transferred to the petitioner following suspension of Distributorship of
M/s Binod Gas Distributor. On 17.10.2021 consumers were transferred
back to M/s Binod Gas Distributor on revival of its Distributorship.
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3.3. The petitioner objected through representations dated
25.10.2021 and 20.12.2021, sought permanent transfer of the Jharia
consumers to its distributorship.
3.4. Aggrieved by the non-transfer of the customers, the
petitioner has filed the present writ petition.

4. Learned Counsel for the petitioner submits the petitioner
was granted LPG distributorship at Jharia under agreement dated
08.04.2017, but the customers of the erstwhile M/s Jyoti Jwala Gas
Agency were not transferred to it. Relying on IOCL Circular dated
25.08.2015, particularly Clauses 7(ii) and 7(iii), it is contended that
consumers of a terminated distributorship ought to be transferred to the
newly commissioned distributor. The Counsel for the petitioner further
relies on the RTI reply dated 03.12.2021 and submits that about 25,600
Jharia customers were temporarily transferred to it during the
suspension of Distributorship of M/s Binod Gas Distributor in year 2020.
Despite repeated representations dated 18.10.2021, 25.10.2021 and
20.12.2021, the respondents did not take a final decision. Thus, he seeks a
direction may be issued to IOCL to transfer the regular refill customers
of the Jharia market to M/s Devika Indane in terms of the distributorship
agreement and the circular dated 25.08.2015.

5. Learned Counsel for the respondents submits that the
petitioner is essentially seeking transfer of the customers of M/s Binod
Gas Distributor, which is situated in Jharia and were originally customers
of M/s Jyoti Jwala Indane, whose distributorship was terminated on
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30.07.2012. The Counsel for the respondents disputes the petitioner’s
claim of suffering financial hardship on account of non-transfer of the
said customers and submits that the petitioner has approximately 14,000
active customers with an average monthly refill sale of about 5,500 refills,
which is above the prescribed viability level of 4,400 refills sale per
month. Customers were temporarily transferred to the petitioner during
the suspension of Distributorship of M/s Binod Gas Distributor and,
upon revival of its distributorship, those consumers were reallocated to
M/s Binod Gas Distributor, which was the parent Distributor of the
consumers. He further submits that disputes in respect of the similar
circular dated 04.01.2018 which also contains the terms of transfer of the
existing customer of this company and similar circular of other oil
marketing company pending before the Hon’ble Supreme Court in SLP
(C) No. 2425 of 2020.
6. After hearing the parties and going through the records of
this case, it appears that the distributorship of M/s Jyoti Jwala Indane
was terminated on 30.07.2012 and the petitioner was allotted the
distributorship, operation of which commenced only from 2017. By filing
this writ petition the petitioner seeks transfer of the regular refill
customers of M/s Jyoti Jwala Indane to M/s Devika Indane on the basis
of the Circular dated 25.08.2015. The petitioner has relied on Clause Nos.
7(ii) and 7(iii) of the Circular Ref. No.SL/AKM/1601 dated 25.08.2015 of
IOCL, which is quoted below:-
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“7. Revocation of suspension/ commissioning of
distributor in lieu of termination:
i) …………..
ii) Commissioning of new distributor in a lone
market:
All registered consumers of the particular market will be
transferred to the new distributor commissioned in that
market, whether in lieu of the terminated or against
Marketing Plan. If the distributor, in lieu of the
terminated is commissioned later, procedure of consumers
transfers as detailed in para (iii) below should be followed.
iii) Commissioning of new distributor in lieu of a
terminated in a Multiple distributor Market
Consumers of the terminated distributor should be
transferred to the newly commissioned distributorship as
per norms in vogue. However, if after initial consumer
transfer, the other distributor/s continues to remain above
restructuring norms applicable to the market on account
of consumers of the terminated distributor not transferred,
then such excess number of consumers will also be
transferred to the newly commissioned distributor.”


7. From the aforesaid it appears that in a lone market, all
consumers shall be transferred to the newly appointed distributor;
whereas, in a multiple distributor market, consumers shall initially be
reassigned in accordance with established regulatory norms.
Furthermore, if existing operational distributors continue to hold
consumer volumes exceeding prescribed restructuring thresholds due to
incomplete initial reallocations, all such surplus consumers shall be
mandatorily transferred to the newly commissioned distributor.

8. It is a proposition of law that administrative guidelines or
circulars concerning essential services, a pragmatic, realistic, and
functional approach must be taken over a purely technical one. The
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objective of IOCL Circular Ref. No. SL/AKM/1601 dated 25.08.2015 is to
establish a temporary alternate supply arrangement through an existing
distributorship to mitigate sudden hardship of the consumers. This
applies to markets with only a single (lone) distributor. In the event of the
suspension or termination of this sole distributorship, alternate supply
arrangements must be made through active distributors from an adjacent
or neighbouring market to ensure uninterrupted consumer supply. It is
undisputed that between 2012 to 2017, the existing customers of M/s
Jyoti Jwala Indane were distributed to other distributers and when the
distributorship of the petitioner is commenced in the year 2017 some of
customers were allotted back to them. Further, respondent-IOCL in its
counter-affidavit brough the fact on record that now the petitioner has
approximately 14,000 active customers with an average monthly refill
sale of about 5,500 refills, which is above the prescribed viability level of
4,400 refills sale per month.

9. Thus, in view of the aforesaid, contention of the petitioner
that the all customers of the M/s Jyoti Jwala Indane should be transferred
to the petitioner cannot be accepted and further, this cannot give an
enforceable right to the petitioner to claim transfer of the customers of
another distributorship. It is also undisputed fact that the customers of
M/s Binod Gas Distributor were transferred to the petitioner only as a
temporary arrangement during suspension of its distributorship and
were subsequently restored upon revival of the said distributorship.
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10. Considering of the aforesaid, I am not inclined to grant any
relief to the petitioner in this writ petition.
11. dismissed.
Accordingly, the writ petition stands

(ANANDA SEN, J.)
st
31 August, 2026
Prashant. Cp-2



Uploaded on 05.09.2026
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