Judgment :-

P. Sathasivam, J.

1) Leave granted.

2) These appeals have been filed against the final judgment and order dated 09.10.2009 passed by the High Court of Judicature at Allahabad in C.M.W.P. No. 26181 of 2006 and order dated 06.11.2009 in Civil Misc. Review Petition No. 286203 of 2009. By judgment dated 09.10.2009, the High Court allowed the writ petition filed by the contesting respondents herein and quashed the order dated 18.01.2006 passed by the Territory Manager (Retail), Meerut, BPCL terminating the dealership licence of the outlet of respondent No.1-Firm and directed restoration of their dealership. Review petition filed by the appellant herein against the said order was also dismissed on 06.11.2009 by the High Court.

3) Brief facts:

a) The appellant – Bharat Petroleum Corporation Ltd. (in short “BPCL”) is a Government of India Undertaking under the administrative control of the Ministry of Petroleum & Natural Gas and is engaged in refining, distributing and selling petroleum products such as Motor Spirit (MS/Petrol), High Speed Diesel (HSD), Kerosene, Liquified Petroleum Gas (LPG) etc., all over the country. Respondent No.1-Firm is a licensed dealer of the BPCL, selling petroleum products from its Retail Outlet (RO) at Court Road, Saharanpur, U.P. Originally, the Dealership Licence was granted, vide agreement dated 24.07.1975.

b) It is the case of the BPCL that on 22.08.2005, a routine inspection of the said RO was conducted by a team consisting of Territory Manager, Senior Sales Officer and Senior Engineering Officer, Meerut in the presence of one of the signatories to the said Dealership Licence viz., Shri Alok Kumar Gupta-Respondent No. 3 herein. During the inspection, certain irregularities/variations were found for which samples of MS/ULP, SPEED and HSD were taken and the sale for all the products was suspended and the dispensing units and tanks were sealed after taking meter readings. Thereafter, on 23.08.2005, the seized samples were sent to the Quality Control Laboratory at Shakurbasti, Delhi for testing. Vide test reports dated 24.08.2005, the Laboratory confirmed that the samples failed to meet the required specifications.

c) Being aggrieved, the respondents instituted a suit being O.S. No. 695 of 2005 before the Civil Judge (Sr. Division), Saharanpur for resumption of supply of petroleum products and for restraining the BPCL from interfering with the sales and supplies of petroleum products from their RO along with an application for temporary injunction.

d) On 02.09.2005, BPCL filed a report with regard to the samples taken from the outlet. Against the said report, the respondent-Firm moved an application raising objection that the test reports are not based on the samples taken from the outlet and prayed for redrawal of the samples in the presence of independent witnesses.

e) On 07.09.2005, BPCL issued a show cause notice to the respondents as to why action should not be taken against them including termination of the dealership. The respondents put forth their stand by way of a reply dated 21.09.2005. By order dated 03.10.2005, learned Civil Judge dismissed the application for issuing of temporary injunction. Vide order dated 18.01.2006, the Territory Manager (Retail), Meerut, terminated the dealership agreement/licence of the respondents with immediate effect. Since the dealership licence of the respondents got terminated and the possession of the outlet was handed over to M/s Om Filling Station (Respondent No. 8 herein), they filed an application for withdrawal of the suit and by order dated 22.02.2006, the said suit was withdrawn.

f) Thereafter, the respondent-Firm filed a writ petition being C.M.W.P. No. 26181 of 2006 before the High Court for quashing the termination order dated 18.01.2006. By impugned judgment dated 09.10.2009, the High Court allowed the petition and quashed the termination order and directed the BPCL to restore the dealership.

g) Aggrieved by the said order, the BPCL filed a Review Pe