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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Sri Justice Venkateswarlu Nimmagadda, J
Vijayawada Gas Company, Rep. by its Partner, Mrs. Dandamudi Sailaja Rani – Appellant
Versus
Hindustan Petroleum Corporation Limited – Respondent
ORDER :
1. As the issue involved in both the writ petitions is inter-related, both these writ petitions are taken up together and are disposed of through this common order. W.P.No.24595 of 2024 is taken as a leading case.
W.P.No.24595 of 2024
2. W.P.No.24595 of 2024 is filed under Article 226 of the Constitution of India, claiming the following relief:
“To issue Writ of Mandamus declaring the highhanded action of the respondents in rejecting the reconstitution application bearing no 275520231 dated 03/08/2023 vide Email Communication dt. 08.07.2024 on the grounds of non payment of penalties imposed under the MDG letters dated 14.11.2022 as contrary to Clause 3 4 and further action of the respondents in compelling Petitioner No 3 to carryon business activity forcefully as contrary to Section 32 of the Partnership act 1932 and further violative of fundamental rights of the petitioner under Articles 14, 19(g) and 21 of Constitution of India and consequently direct the Respondents herein to reconstitute Petitioner No 1 firm distributorship as per the application bearing no 275520231 dated 03/08/2023 and relieve Petitioner No 3 from Petitioner No 1 distributorship”
3. M/s. Hindustan Petroleu
The rejection of a partnership reconstitution application based on penalty demands is arbitrary and contrary to the Indian Partnership Act and applicable guidelines.
The court established that termination of a distributorship must adhere to due process and contractual obligations, emphasizing the need for prior consent in partnership arrangements.
The nominee of a convicted distributor has the right to seek reconstitution of the distributorship as per the guidelines, even after the termination of the distributorship.
The court established that consent from legal heirs is essential for the reconstitution of a distributorship, particularly when mental capacity is in question.
Legal heirs of a deceased sole proprietor are entitled to reconstitute a distributorship without excluding other legal heirs.
The court emphasized that termination of business agreements requires adherence to principles of natural justice, including the right to a personal hearing, and that mere allegations without substant....
Withdrawal of a writ petition without permission is deemed abandonment of the cause of action, affecting the maintainability of subsequent petitions.
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