Madras High Court orders Indian Oil to pay ₹15 lakh interim compensation to woman who lost her retail outlet dealership

The petitioner had operated a petroleum retail outlet under the Physically Handicapped Woman category.

After difficulties arose over renewal of the lease for the outlet’s site, she ceased operating it; the outlet was subsequently taken over by two incoming partners.

She alleged that she had been compelled to relinquish the dealership and sought an LPG distributorship at Sankarankovil under the same category, or other relief.

She sought a writ of mandamus based, in part, on a representation dated 1 February 2026.

Whether the petitioner could be directed, by mandamus, to receive an LPG distributorship under the Physically Handicapped Woman category as rehabilitation for losing her retail outlet.

Whether relief could be granted in light of the circumstances in which the petitioner ceased operating the retail outlet, including interim compensation and consideration of her request for an LPG distributorship.

Under Article 226, a writ of mandamus cannot compel an authority to create or make an allotment under a category for which no statutory provision, policy, scheme, or other supporting material has been shown to exist.

The Court also stated that interim monetary relief could be granted in the peculiar circumstances without prejudice to a claim for damages before a competent civil court or in arbitration, leaving any further compensation to those proceedings.

The Court declined to order an LPG distributorship under the requested category because the record did not establish that such a category or rehabilitation scheme existed; it therefore could not issue a positive mandamus for that allotment.

However, having regard to the petitioner’s long association with the retail outlet and the circumstances in which she ceased operating it, the Court directed interim compensation while preserving the parties’ rights and the petitioner’s ability to pursue further damages.

It separately directed the respondents to consider her LPG distributorship request in accordance with law.

The respondents were ordered to pay the petitioner ₹15,00,000 as interim compensation within eight weeks of receiving a copy of the order, without prejudice to further claims for damages.

They were also directed to consider her distributorship request in accordance with law.

No order was made as to costs, and the connected miscellaneous petition was closed.