{"id":241934,"date":"2021-01-08T10:00:51","date_gmt":"2021-01-08T04:30:51","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=241934"},"modified":"2021-01-15T15:12:02","modified_gmt":"2021-01-15T09:42:02","slug":"all-hc-eliminating-competition-in-business-using-writ-jurisdiction-not-permissible-hc-decides-whether-a-competitor-can-prevent-a-rival-from-exercising-right-to-carry-on-business","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/01\/08\/all-hc-eliminating-competition-in-business-using-writ-jurisdiction-not-permissible-hc-decides-whether-a-competitor-can-prevent-a-rival-from-exercising-right-to-carry-on-business\/","title":{"rendered":"All HC | ‘Eliminating competition in business using writ jurisdiction not permissible’: HC decides whether a competitor can prevent a rival from exercising right to carry on business"},"content":{"rendered":"

Allahabad High Court: <\/strong>The Division Bench of Prakash Kesarwani and Dr Yogendra Kumar Srivastava, JJ., reiterated the settled position that in normal course it is not open for a person to seek to prevent a rival from exercising the right to carry on business.<\/p>\n

Petitioner had a retail outlet dealership of MS\/HSD, awarded by the Bharat Petroleum Corporation Limited. The instant petition was filed to seeking to raise a grievance with regard to issuance of a \u2018Letter of Intent\u2019 and Addendum to LOI whereunder it was proposed to offer the respondent 6 a retail outlet dealership of Bharat Petroleum Corporation Limited pursuant to an advertisement issued for the purpose.<\/p>\n

Question as to whether a competitor in business could seek to prevent a rival party from exercising its right to carry on business came up for consideration in Nagar Rice and Flour Mills v. N.T. Gowda, <\/em>(1970) 1 SCC 575<\/a>.<\/p>\n

In the above-cited case, it was held that a competitor in business cannot seek to prevent a rival from exercising its right to carry on business.<\/p>\n

Analysis, Law and Decision<\/u><\/span><\/h3>\n

Bench reiterated the position that in normal course it would not be open to a competitor in business to seek to prevent a rival from exercising a right to carry on business.<\/p>\n

Competition in a trade or business may be subject to restrictions as are permissible and as may be imposed by a law enacted in the interests of the general public. However, independent of any such restriction, a person cannot claim that no other person shall carry on business or trade so as to adversely affect his trade or business.<\/p>\n

Adding to the above, bench while parting with its\u2019 decision expressed that where the claim of the petitioner was solely to prevent a rival from exercising a right to carry on business, he would not have the locus standi to maintain a writ petition as the same would essentially be aimed at eliminating healthy competition in business.<\/p>\n

In light of the above discussion, petition was dismissed. [Prince Filling Station v. Union Government of India, 2020 SCC OnLine All 1562<\/b><\/a>, decided on 17-12-2020]<\/p>\n

\n

Advocates for the parties:<\/span><\/strong><\/p>\n

Counsel for the petitioner: Awadhesh Kumar Singh, Abhai Kumar Singh<\/p>\n

Counsel for the respondent: A.S.G.I., Anand Tiwari, Anand Tiwari, C.S.C., Vikas Budhwar<\/p>\n","protected":false},"excerpt":{"rendered":"

Allahabad High Court: The Division Bench of Prakash Kesarwani and Dr Yogendra Kumar Srivastava, JJ., reiterated the settled position that in normal <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[40417,31350,44741,2976,29785,33731,14781,44740,44739],"class_list":["post-241934","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-addendum","tag-competition","tag-competitor","tag-dealership","tag-law","tag-letter-of-intent","tag-locus-standi","tag-right-to-carry-business","tag-rival-business"],"yoast_head":"\nAll HC | 'Eliminating competition in business using writ jurisdiction not permissible': HC decides whether a competitor can prevent a rival from exercising right to carry on business | SCC Times<\/title>\n<meta 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