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TAPABRATA CHAKRABORTY, RAJA BASU CHOWDHURY
Hazra Filling Station – Appellant
Versus
Indian Oil Corporation Ltd. – Respondent
JUDGMENT :
(Tapabrata Chakraborty, J.)
1. A legal tussle has spiraled up to this Court seeking a quietus to the primary issues as to whether the order of termination of the appellant’s dealership dated 16th December, 2011 is perverse, whether the said order issued by the Senior Retail Sales Manager, Haldia Divisional Office, Indian Oil Corporation Limited (in short, IOCL) suffers from a jurisdictional error, whether at the show cause stage the authority arrived at a finding of guilt against the appellant and as to whether non-communication of the result of test conducted in the MIDCO laboratory at Mumbai maligns the termination proceedings.
2. Shorn of unnecessary details, the facts are that the appellant/writ petitioner was appointed as a dealer of petrol (MS)/ High Speed Diesel Oil outlet in the year 2005 by IOCL. The dealership agreement between the writ petitioner and IOCL was executed on 27th March, 2005. On 24th September, 2010, the Anti Adulteration Cell (AAC), a team consisting of two officers of IOCL on a routine checkup, reached the retail outlet for inspection and started delivery check with 5 litre calibrated measure of the retail outlet and from the first nozzle it was a
Termination of dealership without adhering to procedural guidelines and principles of natural justice is unlawful.
The court upheld the legality of dealership termination based on confirmed tampering evidence, affirming procedural fairness and adherence to natural justice principles, invalidating the petitioner's....
The principle of adherence to the principles of natural justice and the justification of termination based on the dealer's involvement in malpractices.
The termination of a dealership agreement must be fair and in accordance with the principles of natural justice. The burden of proving unauthorized purchase lies on the party alleging it.
The court upheld the termination of the dealership agreement based on the critical irregularities as per the Marketing Discipline Guidelines.
Termination of dealership - Action of termination against critical irregularities has to be approved by Regional Head/State Head/Zonal Head of the Oil Company (General Manager and above) and in respe....
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