Party Having Right Of Appeal Does Not Have Corresponding Right To Insist For Consideration Of Appeal By Forum That Was No Longer In Existence: Supreme Court

The Supreme Court has observed that a party having the right of consideration of appeal does not have any corresponding right to insist for consideration of the appeal by a forum which is no longer in existence.

The bench of Justices Dinesh Maheshwari and Vikram Nath was considering a civil appeal preferred by Chief Divisional Retail Sales Manager, Divisional Office, Indian Oil Corporation Limited, Gorakhpur assailing Allahabad High Court's order dated September 30, 2021.

In the impugned order, the High Court had directed for deciding the appeal preferred by M/S. Bharat Pradhan Filling Center by Dispute Resolution Panel, Gorakhpur within a month failing which the Manager had to appear in person before the Court on the next date.

M/S. Bharat Pradhan Filling Center preferred a writ petition before the High Court questioning the validity of an order dated 27.11.2020 whereby, its dealership was terminated while giving an option to challenge the termination order by way of an appeal within 30 days along with fees in the sum of Rs. 5,00,000/- (Rupees Five Lakhs).

The High Court had on January 19, 2021 had opined that the order requiring the Filling Centre to pre-deposit of Rs. 5,00,000/-was not sustainable and hence. It had directed that if the appeal was preferred within 10 days, the Appellate Authority would consider the same without insisting upon pre-deposit as per the amended Marketing Discipline Guidelines, 2012. Since the appeal was not decided

The appeal having not been decided, the respondent filed the aforesaid Contempt Application. On September 30, 2021, even after taking note of the fact that the procedure for hearing of the appeals had changed under the new guidelines, the High Court directed that the appeal filed by the respondent be decided by the Dispute Resolution Panel, as per the guidelines existing on the date of filing of appeal. The High Court also directed the Manager to be personally present before the Court in case of failure to decide the appeal within the stipulated time.

After passing the order dated October 29, 2021 the High Court while disposing the writ took note of the admitted fact that during the pendency of appeal, the appellate forum had changed in view of the amendments in the guidelines; and the Dispute Resolution Forum, as provided earlier, was not in existence.

The High Court also took note of the fact that there was no challenge to the amended guidelines, which provide that the Director, Indian Oil Corporation Limited shall be the Appellate Authority. Thus, the High Court found no ground to issue mandamus so as to place the appeal filed by the present respondent before the Dispute Resolution Forum.

Further, the High Court also took note of the respondent's submission that it would be giving up the claim to place the appeal before the erstwhile forum and agreed for disposal of the appeal as per the amended guidelines.

Thus while disposing of the writ petition, the High Court also provided for expeditious proceedings by the Appellate Authority.

The Top Court considering the facts was also apprised of the fact that the Appellate Authority indeed examined the appeal and heard the parties on December 16, 2021.

Taking note of the fact, the bench while setting aside the impugned order said,

"In view of the subsequent events above-mentioned, it is but clear that the present respondent has given up its insistence for decision of the appeal by way of erstwhile mechanism, and rightly so because, even if the respondent (writ petitioner) had the right of consideration of appeal, it had no corresponding right to insist for consideration of the appeal by a forum that was no longer in existence."

Case Title: Sri Abhyudaya Kumar Shahi V. M/S. Bharat Pradhan Filling Centre| Civil Appeal No.1849 Of 2022

Coram: Justices Dinesh Maheshwari and Vikram Nath

Citation: 2022 LiveLaw (SC) 625

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