HYDERABAD: Justice NV Shravan Kumar of the Telangana High Court has granted an interim stay on the operation and implementation of the “Policy on Consumer Transfer - Area of Operation” dated February 21, 2025.
The policy has been announced by public sector oil marketing companies — Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited.
The stay will be effective for three weeks from the date of the order and applies only to the petitioners involved in the case.
The interim relief was granted in response to a writ petition filed by M/s Srinivasa Enterprises, HP Gas Distributors, and 34 other LPG distributors.
The petitioners sought to restrain the oil companies from transferring their existing customers to other distributors under the new policy frameworks titled Policy on Customer Transfer - Market Restructuring and Policy on Customer Transfer - Area of Operation.
During the hearing, the petitioners contended that they are long-standing, authorized LPG distributors who have made substantial investments in infrastructure, manpower, and delivery mechanisms to provide efficient service to customers.
They argued that the new policy, which mandates customer reallocation based on the 2011 census and introduces a refill ceiling and viability limits, severely affects their business operations.
Senior Counsel for the petitioners pointed out that the policy imposes a monthly refill ceiling of 20,000 and a viability limit of 10,000 for cities with a population of 10 lakhs and above.
He emphasized that the existing distributorship agreements do not stipulate any such customer or cylinder limits, making the policy arbitrary and detrimental to existing distributors who have built their customer base over the years.
The Court was informed that a similar policy issued on January 4, 2018, had earlier been quashed by the Bombay High Court in 2019 for being arbitrary. Appeals filed by the oil companies before the Supreme Court did not result in any interim relief for them.
The respondents, represented by their senior counsel, defended the February 2025 policy by stating that it was formulated with the intention of ensuring the viability of newly appointed distributors.
However, the court noted that no evidence had been presented to show service deficiencies or other pressing reasons that would necessitate such a policy change.
In its order, the court remarked that the policy appeared to disproportionately affect existing distributors and that there was a prima facie case in their favour.
“Apparently, the restructuring policy would have an impact in shifting the existing customers to the new distributors, as such, there is a balance of convenience in favour of the petitioners and no prejudice would be caused to the respondents, at this juncture,” the court observed.
Justice Shravan Kumar directed both parties to file a common distribution agreement applicable to all petitioners before the next hearing and ordered the respondents to file their counter-affidavits. The matter has been adjourned to April 16, 2025, for further hearing.
HC junks man’s claim on Endowments land
Hyderabad: Justice Nagesh Bheemapaka of the Telangana High Court has dismissed a writ petition filed by one Brij Gopal Heda alleging unlawful interference by the Endowments department in his possession of 3,433 sq yd of land situated in Kishanbagh, Hyderabad.
Heda urged the court to declare the affixing of a caution notice to the gate of the disputed property as illegal and issue a directive restraining authorities from dispossessing him without adherence to the procedures stipulated under Sections 83 to 85 of the Telangana Endowments Act.
However, the court noted that the Endowments commissioner had already passed an order in 2021 rejecting the Heda’s representation. The court observed that Heda, having participated in the proceedings and was aware of the rejection, could not continue to occupy or assert rights over Endowment land. Finding no merit in Heda’s arguments, the court dismissed his writ petition.