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JAY SENGUPTA
Sarbamangala Service Station – Appellant
Versus
Union of India – Respondent
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
Termination of dealership without adhering to procedural guidelines and principles of natural justice is unlawful.
The presence of unauthorized fittings in a dispensing unit constitutes a breach of the dealership agreement, justifying termination of the dealership.
The court emphasized the necessity of adhering to principles of natural justice in administrative actions, ruling that reliance on undisclosed evidence rendered the termination of the dealership arbi....
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....
Consideration of the petitioner's defense and the expert opinion of the OEM is crucial in dealership termination cases to ensure compliance with principles of natural justice.
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