Bombay High Court sides with local transporters

Agreeing with the Union Government that instead of cartels that have been operating for years from particular states, local transporters must be given preference to move bulk LPG fuel by road, the Bombay High Court rejected a bunch of petitions challenging the e-tender notice issued by Indian Oil Corporation Limited (IOC). A division bench of Justice Shantanu Kemkar and Justice Makarand Karnik in their order said, "This move would be beneficial to several small and new entrepreneurs" Jitesh Wadhwa and a few other transporters from Gujarat had challenged the e-tender notice issued by IOC in which preference has been given to bidders who have registered their Tank Trucks (TT) in the state for which the tender is floated over those registered in other states. The petitioners had earlier argued that the e-tenders were floated region-wise wherein the country was divided into five regions. They claimed that the condition of preference is wholly arbitrary and unreasonable as it will put those trucks in an advantageous position which are registered in a particular state even if they are old. Further, the condition violates their fundamental right to carry on business fairly in all parts of the country. The Union Government and IOC opposed the plea saying, "Preference to be given to TTs of a particular state will generate local employment in the transportation process. It will lead to the overall equitable development of the country's resources and will remove developmental imbalance within different states of the country, which is one of the avowed objects of the instrumentality of the state." After going through the records and replies, the court dismissed the petitions and agreed with the respondent saying, "Merely because the petitioners feel that the condition in the past was fairer, wiser or logical that by itself cannot be ground to strike down the impugned condition which otherwise in our opinion appears to be reasonable and gives a fair chance to all transport operators to compete and will encourage state-wise employment."

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