Facts
The petitioner, a partnership firm and LPG distributor, was inspected by the respondent on 04.09.2014, leading to a report citing five discrepancies
Source reference: para. 3Following a show-cause notice, an order was passed on 01.04.2016 imposing a penalty of ₹1,38,373/- (20% of average monthly commission) for failure to provide rebates on home delivery of cylinders
Source reference: para. 3The petitioner contended that the rebate was paid but failed to reflect in cash memos due to the respondent's faulty software
Source reference: para. 6An appeal against the penalty was rejected by the Appellate Authority on 02.08.2016
Source reference: para. 3The petitioner subsequently approached the High Court under Article 226, challenging these orders as arbitrary and seeking their quashment
Source reference: para. 2Issues
1. Whether the High Court, exercising jurisdiction under Article 226 of the Constitution of India, can adjudicate upon the legality of evidence or specific factual irregularities regarding administrative penalties
Source reference: para. 92. Whether the impugned orders dated 01.04.2016 and 02.08.2016 were arbitrary and illegal due to the non-consideration of documentary evidence
Source reference: para. 6Law Applied
The court primarily considered the scope of judicial review under Article 226 of the Constitution of India
Source reference: para. 2, 9It followed the established principle that writ jurisdiction is not an appellate forum for re-evaluating evidence or factual findings of administrative authorities
Source reference: para. 9The matter also referenced Articles 14 and 19(1)(g) regarding arbitrary state action and the right to practice a profession, alongside the Liquefied Petroleum Gas (Regulation and Supply Distribution) Order, 1993
Source reference: para. 2Reasoning
The Court examined the petitioner’s contention that the respondent failed to consider evidence proving the rebate was paid and reflected in account books despite the software error
Source reference: para. 6However, the Court determined that determining the legality or sufficiency of the evidence produced before the respondent authority—or assessing whether specific irregularities occurred—falls outside the scope of writ jurisdiction
Source reference: para. 9The Court reasoned that it cannot delve into such minute factual details or act as a fact-finding body when the administrative process, including an appeal, has already been concluded
Source reference: para. 9Consequently, the Court found no grounds for interference with the impugned orders
Source reference: para. 9Holding
The High Court dismissed the petition, holding that it cannot exercise jurisdiction under Article 226 to scrutinize the evidentiary basis of administrative penalties
However, the Court granted liberty to the petitioner to file a fresh representation before the respondent authority supported by relevant facts and documentary evidence
Source reference: para. 10The respondent was directed to consider such representation in accordance with the law after providing an opportunity for a hearing
Source reference: para. 10Rule was discharged with no order as to costs
Source reference: para. 10Original Court PDF
UDAY GAS AGENCYvsINDIAN OIL CORPORATION
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