2019 (5) TMI 445

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Co. for respondent No.2. P.C. The petitioner is an association of petroleum dealers. The petitioner has challenged various communications issued by the respondent Nos. 2 and 3, Indian Oil Corporation Ltd. and its authorities asking the members of the petitioner association to provide bank guarantee equivalent to the amount calculated on the basis of average historical sales or previous month's s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... demanding bank guarantee from dealers is wholly illegal and impermissible. The policy is arbitrary and is violative of rights of the dealers to carry on business and trade. The petitioner relies upon a decision of Gujarat High Court in the case of Manan Autolink Pvt. Ltd. Vs. State of Gujarat (Special Civil Application No.4518 of 2017) decided on 14/17th July 2017 to contend that even in case of d .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ithin the meaning of Article 12 of the Constitution of India would have to act reasonably, even in course of such contractual relation. Nevertheless, the law always recognises a degree of latitude even in State player while entering into private contracts. Naturally for such ground, at this stage no interim relief can be granted. S.O. 13th June 2019. Respondents to file reply before such date.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X