JUDGMENT :

Jay Sengupta, J.

1. This is an application under Article 226 of the Constitution of India praying for a direction upon the respondent authorities to cancel and set aside the impugned order dated 17.08.2020 and the order dated 19.05.2019 issued by the authority concerned and to allow the petitioner to resume retail outlet dealership service under the Indian Oil Corporation.

2. Learned counsel appearing on behalf of the petitioners submitted as follows. The writ petitioners have been running the Retail outlet through Indian Oil Corporation Limited (IOC) upon entering into an agreement since 22nd day of March, 2006 smoothly without any blemish from any corner. The Dispensing Unit (DU) was always kept in sealed condition by the expert/authorized person of the IOC. The writ petitioners had no access over the seal lock of the DU. On 19.05.2019 the inspectors came to inspect the DU of Retail Outlet and found everything in order i.e., (i) DU was in sealed/locked condition, (ii) Flow of oil of DU was in order, (iii) Stock Registrar was in order, (iv) No complaint from any customer. The Inspection Team has hatched up a story of snatching away of foreign particles from the DU whereby the DU hanged. The seal of the DU was opened by Inspection Team. The story of fixing and snatching of the said existing foreign particles by the writ petitioners did not arise at all. There was no consequential effect of existing 'foreign particles' i.e., (i) Shortage of flow of oil from DU, (ii) Any complaint from customer (iii) irregularities in register from actual stocks of oil reserve. The Guidelines Marketing Discipline Guidelines prescribed three type of punishments i.e., (i) Critical (ii) Major and (iii) Minor. Relying upon provision 8.2 (iv), the authority concerned terminated the agreement illegally. In absence of any Additional/Unauthorized fittings and gear inside the DU, the impugned termination was disproportionate and contrary to the Guidelines. The two judgments of the Hon'ble Apex Court i.e. M/s. Godrej Sara Lee Ltd. v. The Excise and Taxation Officer-cum-Assessing Authority & Ors. in Civil Appeal No. 5393 of 2010 and M/s. Magadh Sugar & Energy Ltd. v. The State of Bihar & Ors. in Civil Appeal No. 5728 of 2021 entitled the writ petitioners to approach the High Court in the given facts and circumstances of this instant case, when the authority concerned issued impugned order without considering the records at hand and contrary to the Marketing Discipline Guidelines. The impugned order was perverse, arbitrary, whimsical and a colourable exercise of power.

3. Learned counsel appearing on behalf of the respondent submitted as follows. On or about March 22, 2006, the petitioner entered into an agreement with the Indian Oil Corporation to run an Outlet Retail Dealership in the name of M/s. Sarbamangala Service Station and thereafter, the petitioner obtained license Retail Outlet Dealership from Indian Oil Corporation. On May 19, 2019 the retail outlet of the petitioner was inspected by a Joint Inspection Team of Indian Oil Corporation and certain irregularities were observed in the Dispensing Unit by the Joint Inspection Team. The Joint Inspection was carried out in the presence of petitioner no. 2. The Joint Inspection Team witnessed while inspection of the Dispensing Unit that the petitioner 2 mischievously and forcefully snatched something out of the Dispensing Unit by opening the Electronic