Typographical Error Not Grounds for Overturning Legitimate Expectation, Court Rules
In a landmark decision, the Allahabad High Court, Lucknow Bench, has ruled against the arbitrary cancellation of a Letter of Intent (LOI) issued to Radhvendra Awasthi for establishing a petrol pump at Newada Garhi, Hardoi district, Uttar Pradesh. The court found the cancellation, based on a typographical error in the original advertisement, to be unjust and a violation of the doctrine of legitimate expectation.
The court observed that the respondent, Bharat Petroleum Corporation Ltd., failed to demonstrate any overriding public interest that justified the withdrawal of the LOI, which had been issued on March 7, 2020. The error in question involved the misrepresentation of the road type, with "MDR" (Major District Road) being mistakenly listed instead of "ODR" (Other District Road).
Justice Shekhar B. Saraf and Justice Indrajeet Shukla, presiding over the case, emphasized that public authorities must adhere to principles of fairness, consistency, and transparency. The court held that an arbitrary denial of legitimate expectation violates Article 14 of the Indian Constitution, which guarantees equality before the law.
The petitioner, represented by advocates Ram Pratap Singh Chauhan and Prashant Kumar Singh, argued that all formalities required by the LOI had been completed, and significant resources had been expended based on the state's representations. The cancellation came after a show cause notice was issued on November 30, 2021, following a representation by Advocate Binod Pandey to the authorities.
The court dismissed the respondent's argument, presented by counsel Mohammad Ehtesham Khan, that the location did not exist on an MDR. It noted that the identity of the location was not in dispute and that the advertisement's description was complete in all other respects.
Referencing the Supreme Court's ruling in Sivanandan C.T. v. High Court of Kerala, the court reiterated that legitimate expectation is a crucial safeguard against arbitrary state action. It stated that the doctrine requires public authorities to justify the denial of legitimate expectation by proving an overriding public interest, which the respondent failed to do.
The court's judgment mandates the continuation of the LOI, allowing the petitioner to proceed with the petrol pump establishment. This decision underscores the judiciary's role in ensuring that administrative actions are grounded in fairness and legal principles.
Bottom Line:
Legitimate Expectation - Cancellation of Letter of Intent issued for establishing a petrol pump due to a typographical error in the advertisement - Cancellation held arbitrary as no overriding public interest was demonstrated, and legitimate expectation of the petitioner was violated.
Statutory provision(s): Article 14 of the Constitution of India, 1950
