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PETITIONER: ASHOK KUMAR MITTAL

       Vs.

RESPONDENT: MARUTI UDYOG LTD. & ANR.

DATE OF JUDGMENT07/03/1986

BENCH: TULZAPURKAR, V.D. BENCH: TULZAPURKAR, V.D. SEN, A.P. (J)

CITATION:  1986 AIR 1923            1986 SCR  (1) 585  1986 SCC  (2) 293        1986 SCALE  (1)326

ACT:      Justice in Public Interest - Power of the Supreme Court to issue  directions or  orders -  Out-of-turn allotment  of Maruti Cars  out of manufacturer’s discretionary quota of 5% to  several   categories  like   defence,  VIPs,   judiciary including lawyers  etc. - Whether the method adopted, namely (a) for the promotion of commercial interest of the company; (b) for  the promotion of public interest; and (c) avoidance of undue  individual hardships  etc. violative of Article 14 of the  Constitution  and  arbitrary  -  Guidelines  by  the Supreme Court.

HEADNOTE:      The petitioner  applied for  allotment of  "Maruti  Car 800" and  due to  an error  of the computer his name was not included for  the allotment  of "Maruti 800" but for "Maruti Truck". When  the petitioer  pointed out the discrepency the error was accepted by the respondents who however, agreed to consider the case of the petitioner for allotment out of the manufacturers’ discretionary  quota of  5%. Accordingly, the petitioner was  alloted Serial  No.8 under the discretionary quota. In  the course  of certain correspondence that ensued between the  petitioner and  the respondent, the respondents indicated the  usual guidelines  adopted in the allotment of the car  out of  the manufacturers’  discretionary quota  to defence forces,  judiciary, Constitutional  heads, MPs  etc. The petitioner  has  challenged  such  a  classification  as arbitrary and  violative of the provisions of the Article 14 of the Constitution.      Disposing of the petitions, ^      HELD :  The interest  of justice  would be  met, if the allotment  of   Maruti  vehicles   out   of   manufacturers’ discretionary  quota   is  made   in  favour  of  the  named categories specified  in the  order and  subject  to  strict observance of the conditions indicated therein. [586 E-F] 586      (The Court  ordered that  the guidelines  would  be  in force for  a period  of three  years and  will be subject to review  later   taking  into  consideration  the  prevailing circumstances  which  may  exist  at  that  point  of  time. Applying non-liquet for the present, the Court left open the

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several contentions raised in the petitions.)

JUDGMENT:      ORIGINAL JURISDICTION  : Writ  Petition (Civil) No. 588 and 11716 of 1984.      Under Article 32 of the Constitution of India.      Soli J.  Sorabji, Prashant  Desai and R. N. Karanjawala for the Petitioners.      K. Parasaran,  Attorney General,  Mrs.  Vijay  Rao  and T.V.S.N. Chari for the Respondents.      The Order of the Court was delivered by      TULZAPURKAR, J. We have heard Mr. Soli J. Sorabjee, Mr. Prashant Bhushan  and Mr. R. Karanjawala for the petitioners and  the   learned  Attorney-General,   on  behalf   of  the respondents. Various  submissions were made on behalf of the parties.  After  consideration  discussion  of  the  various proposals and  suggestions made  by parties and after having given our anxious and deep consideration to the matter it is ordered that  in public  interest the  following  guidelines should regulate  the allotment of Maruti vehicles out of the manufacturers quota of 5 per cent.      The  allotment   of  Maruti   vehicles   out   of   the manufacturers’ quota of five per cent will be made in favour of the following categories only:      I.  Any   organisation/institution  coming  within  the definition of  ’State’ under  Article 12 of the Constitution of India.      II. Any  hospital or recognised charitable organisatior or educational institutions registered or incorporated under a statute  or having  recognition under  Section 80-G of the Indian Income Tax Act, 1961. 587      III. Individuals      a. An individual suffering from physical handicap so as to render  him incapable  of using public transport would be eligible for allotment provided his income together with the income of  his or her spouse or his or her guardian does not exceed Rs. 60,000 per year.      b. The  President of  India, Vice-President  of  India, Cabinet Ministers,  Ministers of  State in the Union Cabinet and Governors  of States  and  Cabinet  Ministers  in  State Governments, the  Chairman of the Public Service Commission, the Chief Election Commissioner, the Auditor and Comptroller General of India and the Attorney General of India.      c. The Speaker and the Deputy Speaker of the Lok Sabha, the Chairman  and the  Deputy Chairman  of the  Rajya Sabha, Speakers of  State Legislative  Assemblies, Chairpersons  of State  Legislative   Councils,  and  Leaders  of  Opposition parties in Parliament and in the State Legislatures.      d. The  Chief Justice  and other  Judges of the Supreme Court and  the Chief  Justice and  other Judges  of the High Courts.      e. Public  servants not  below the  rank of  Additional Secretary to the Government of India.      f. Serving  members of  the Armed  Forces not below the rank of Brigadier in the Army or equivalent rank in the Navy or the Air Force;      g. manufacturers  of component parts for utilisation in the manufacture  of Maruti  vehicles.  The  number  of  this category will be restricted to ten per year;      h. employees  of Maruti  Udyog Ltd.,  limited to  fifty vehicles per year;      i. individuals  in  recognition  of  their  outstanding

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humanitarian services  to the  society or to the Nation. The number in this category will be restricted to ten per year; 588      j. individuals  cases of undue hardship on humanitarian grounds. The  number in  this category will be restricted to five per year. IV.  Error category  i.e. individuals whose applications for regular allotment  could not be registered on account of any genuine error.           The following conditions will be strictly observed in     the      allotment     of     vehicles     to     any organisation/institution, person or individual in any of the aforesaid categories:      a. There  will be  no resale  of  the  vehicle  by  the allottee for a period of three years.      This  condition  will  be  inserted  in  the  order  of allotment issued  in favour  of the  allottee. Maruti  Udyog Ltd. will  further obtain  before  giving  delivery  of  the vehicle a written undertaking from the allottee that he will not sell  the vehicle  for a  period of three years from the date of delivery.      b. There  will  be  no  second  allotment  out  of  the manufacturers’ quota to the same individual.      c. In  each of  the aforesaid  categories allotment, as far as  possible, will  be made  on first  come first served basis in  accordance with  the date  of the  receipt of  the application   for    allotment   out    of   the   aforesaid manufacturers’  quota.   In  cases   where  more   than  one application is  received on the same day from individuals in the same  category, priority of allotment in such cases will be determined by draw of lots under proper supervision.      It   is    clarified   that    allotments   made    for military/paramilitary  purposes   and  against  firm  export orders for  supply outside  of India,  will not  be included within 5% of the Manufacturers’ quota.      These guidelines will be in force for a period of three years  and   will  be   subject  to   review   taking   into consideration the  prevailing circumstances  which may exist at that point of time. 589      In view  of the  aforesaid guidelines,  we think, it is unnecessary for  us to determine the various submissions and contentions raised  on  behalf  of  the  parties  which  are however left open.      All  general   interim  orders  are  vacated.  However, deliveries made pursuant to our interim orders will stand.      Liberty to apply. S.R. 590