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Indian Oil Company Ltd. & Another v/s Kerala State Road Tr. Company & Others


Company & Directors' Information:- INDIAN OIL CORPORATION LIMITED [Active] CIN = L23201MH1959GOI011388

Company & Directors' Information:- OIL CORPORATION OF INDIA PRIVATE LIMITED [Active] CIN = U15133UP1952PTC002471

Company & Directors' Information:- O.I.L PRIVATE LIMITED [Active] CIN = U15400DL2013PTC255692

Company & Directors' Information:- THE INDIAN CORPORATION PRIVATE LIMITED [Active] CIN = U65993TN1946PTC000988

    SLPs (C) No. 19996 of 2013 with SLP(C) No. 20016 of 2013 with SLP(C) No. 20042 of 2013 with I.A. Nos. 2, 3 & 4 of 2013 in T.P.(C) Nos. 908 of 2013

    Decided On, 16 September 2013

    At, Supreme Court of India

    By, THE HONOURABLE MR. JUSTICE R.M. LODHA & THE HONOURABLE MR. JUSTICE MADAN B. LOKUR

    For the Petitioners: Goolam E. Vahanvati, Attorney General (Amit Meharia, Khushbu Jain (for M/s. Meharia Co.), Advocates. For the Respondents: Mohan Jain, Additional Solicitor General, V. Giri, Senior Advocate (Haris Beeran, Mushtaq Salim, Radha Shyam Jena, Deepak Jain, Anil Kaushik, Rabindra Kr. Mohanty, B. Krishna Prasad, Jogy Scaria R. Santhanakrishnan, Aditya Kumar, C.S.N. Mohan Rao), Shekhar Naphade, Senior Advocate (B.S. Patel, Pradhuman Gohil, Jaikriti S. Jadeja, Taruna Singh, Vikas Singh), Advocates.



Judgment Text

1. We have heard Mr. Goolam E. Vahanvati, learned Attorney General for the Petitioners, and Mr. Shekhar Naphade, learned senior Counsel for the Respondent Nos. 1 and 2.

2. It is directed that the Central Government shall consider the representation (May, 2013) made by the applicants expeditiously and preferably within one month from today.

3. Interlocutory Application No. 2 of 2013 stands disposed of.

4. List Interlocutory Application Nos. 3 of 2013 and 4 of 2013 after one month.

S.L.P. (Civil) No. 19996 of 2013

5. We have heard Mr. Goolam E. Vahanvati, learned Attorney General for the petitioners (hereinafter referred to as 'Oil Company'), and Mr. V. Giri, learned senior counsel for the Respondent No. 1 - Kerala State Road Transport Corporation (for short, 'Transport Corporation').

6. The learned single Judge of the High Court by his order dated 21.03.2013 has restrained the Oil Company from realising higher price from the Transport Corporation for the high speed diesel oil supplied than the price charged from other retailers in open market.

7. In our opinion, having regard to the over-all facts and circumstances of the case, particularly that 83% of diesel is imported and the current value of Rupee against Dollar has substantially gone down, we are satisfied that not only the Oil Company has balance of convenience in its favour but we are also of the view that irretrievable injustice shall be caused to the Oil Company if the interim injunction granted by the High Court is allowed to operate.

8. In view of the above, we stay the operation of the order dated 21.03.2013 passed by the single Judge of the Kerala High Court until further orders.

9. Accordingly, the Transport Corporation taking bulk supplies directly from the installations of the Oil Company shall be charged high speed diesel oil price at the non-subsidised market determined price in terms of the letter dated January 17, 2013 of the Government of India, Ministry of Petroleum & Natural Gas (PP Section).

10. However, as of now, no recovery shall be made by the Oil Company from the Transport Corporation towards arrears.

S.L.P. (Civil) No. 20016 of 2013

11. In the light of the order passed by us today in S.L.P. (Civil) No. 19996 of 2013 above, the operation of the order dated 01.04.2013 shall remain stayed until further orders.

12. Accordingly, the Kerala State Water Transport Department, Government of Kerala taking bulk supplies directly from the installations of the Oil Company shall be charged high speed diesel oil price at the non-subsidised market determined price in terms of the letter dated January 17, 2013 of the Government of India, Ministry of Petroleum & Natural Gas (PP Section).

13. However, as of now, no recovery shall be made by the Oil Company from the Transport Corporation towards arrears.

S.L.P. (Civil) No. 20042 of 2013

14. The single Judge of the Andhra Pradesh High Court has passed an interim order directing the Respondent No. 1 -Andhra Pradesh State Road Transport Corporation (for short, 'Transport Corporation') to pay 50% of the enhanced high speed diesel oil price to the Petitioners herein (for short, 'Oil Company') for future supplies.

15. We are informed by Mr. Goolam E. Vahanvati, learned Attorney General for the Oil Company, that the Transport Corporation has not claimed any benefit of the impugned order so far and they have been paying enhanced high speed diesel oil price.

16. Be that as it may, in view of the order passed by us today in S.L.P. (Civil

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) No. 19996 of 2013 above, it is directed that Andhra Pradesh State Road Transport Corporation shall be charged high speed diesel oil price at the non-subsidised market determined price in terms of the letter dated January 17, 2013 issued by the Government of India, Ministry of Petroleum & Natural Gas (PP Section). 17. The operation of the impugned order shall remain stayed until further orders.
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