Kerala State Road Transport Corporation Moves Supreme Court Against Diesel Price Hike By Oil Companies

A special leave petition has been filed challenging the order passed by a Division bench of the High Court allowing appeals moved by state-owned oil marketing companies (OMC) challenging the interim order issued by a Single judge

The Corporation in its special leave petition filed through Advocate Deepak Prakash has argued that the impugned order has been passed in a writ appeal challenging a well-reasoned interim order passed the Single Judge after hearing all the parties.

Therefore, in such an appeal, the Appellate Court ought not to have interfered and essentially reversed the discretion of Court of First Instance.

The petition has argued the Court ignored the settled principles of law regulating the grant or refusal of interim order.

"It is settled that an appeal against exercise of discretion is said to be an appeal on principal. The Division Bench without considering the material on record, reached a conclusion different from the well-reasoned order adjudicated by the Single Judge which was delivered after hearing both the parties, which is per-se illegal and against the principles of law and of natural justice." The plea states

According to the petitioner, the Single judge did not pass an irreversible order which created any manner of irreparable loss to the Respondents, since it is with regard to the payment of excess price levied upon the rates of high speed diesel to the Petitioner Corporation. In future, if a finding is recorded in favour of the Respondent Corporation, then the same can be duly compensated by proper valuation of the amounts involved therein.

The petition has stated that the Impugned Order has, in effect, had the following consequences:

• Virtually dismissed the Writ Petition filed by the Petitioner Corporation and rendered it as infructuous, which is pending before the High Court.
• Erroneously relegated the parties to Arbitration, for issues which are not arbitrable as they pertain to violation of the Rights of the Petitioner Corporation and the discriminatory acts, committed by the respondent Government oil companies.
• According to the petitioner the oil companies have in an unreasonable manner hiked the price of High Speed Diesel for the Corporation, who is a bulk purchaser, at exorbitant rates higher than the normal retail market price of Diesel. 
• Virtually provided undue advantage to the Private Transport Operators who are now at a position to purchase diesel at a much lower rate as compared to that of the Petitioner Corporation, who is compelled to pay Rs. 21/litre extra on a daily basis.
• Conveniently ignored the discriminatory acts of the respondents, who deliberately flouted single bench's order asking them to explain the price mechanism and till date, the said directions have not been complied with.

According to the Corporation, it is compelled to approach the top court to safeguard the interests of the public and ensure smooth functioning of the Corporation which is the only entity discharging essential services of Road transport corporation in the State of Kerala.

High Court's Order:

The High Court in its impugned order observed that the petitioner did not represent their alleged grievance to the OMCs and instead rushed to the Court. Therefore, no inaction can be alleged against the respondents warranting the issuance of a writ of mandamus.

Furthermore, the final relief sought in the writ petition has been granted as an interim measure, which again is impermissible

Further, it was held that when a party invokes the plenary power of the High Court to issue a prerogative writ under Article 226 of the Constitution of India, notwithstanding the arbitration clause contained in an inter-party contract, and the opposite party objects to the maintainability of the writ petition, the High Court is bound to consider the objection and be satisfied that it is a fit case to exercise its discretion instead of relegating the parties to the alternative remedy.

It may be noted that the petitioner had approached the Apex Court in March 2022 with a similar plea challenging decision of State-owned Oil Marketing Companies, relating to increase in fuel prices sold to bulk purchasers. However, while orally criticising the State's policy of giving life-long pension for personal staff of ministers, the Supreme Court had granted KSRTC liberty to approach the High Court.