Court Upholds Competition, Dismisses Petition as Attempt to Thwart Business Rivalry
In a significant judgment, the Allahabad High Court, comprising Justices Shekhar B. Saraf and Abdhesh Kumar Chaudhary, dismissed a writ petition filed by M/s D.K. Automobiles challenging the establishment of a new petrol pump in proximity to its existing outlet. The Court ruled that such a petition, aimed at suppressing competition, is not maintainable under Article 226 of the Constitution of India.
The petitioners, M/s D.K. Automobiles, operating under the proprietorship of Smt. Shradha Agarwal, contended that the new petrol pump, established by Reliance BP Mobility Limited, violated existing guidelines regarding the distance between fuel stations. They argued that the establishment of a new pump would adversely affect their financial interests and sought to quash the No Objection Certificate (NOC) issued to the new entrant.
The Court, however, emphasized that the petitioner, being a rival businessman, lacked the locus standi to challenge the establishment of the new petrol pump. Referring to various precedents, the bench highlighted that business competition does not infringe upon any fundamental or statutory rights, and the writ jurisdiction cannot be invoked solely to eliminate competition.
The judgment reiterated that the right to carry on business is equally available to the new entrant, provided they comply with all legal requirements. The apprehension of financial loss due to competition, the Court noted, does not constitute a violation of the fundamental rights of the existing business owner.
The Court also dismissed the petition as an abuse of the legal process, noting that a similar Public Interest Litigation (PIL) had been previously filed and dismissed. The bench observed that the present writ petition was merely a rephrased attempt to challenge the same issue.
Additionally, the Court addressed the petitioner's concerns regarding the guidelines for the distance between fuel stations, stating that these guidelines are not applicable when access is provided through a 7-meter-wide service lane, which was present in this case.
Ultimately, the Court concluded that the petition aimed to perpetuate a monopoly and eliminate healthy competition, which is against public policy. The judgment underscores the judiciary's role in upholding fair competition in the business environment.
Bottom Line :
Rival businessmen cannot challenge the establishment of a new petrol pump by invoking writ jurisdiction under Article 226 of the Constitution of India, as such petitions aim to eliminate competition and are not maintainable.
Statutory provision(s): Article 226 of the Constitution of India, Article 19(1)(g) of the Constitution of India
M/s D.K. Automobiles v. Union of India, (Allahabad)(DB)(Lucknow) : Law Finder Doc id # 2959232
