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1995 Supreme(Del) 6

R.C.LAHOTI
INDIAN OIL CORPORATION LIMITED – Appellant
Versus
SHRIRAM GAS SERVICE – Respondent


Advocates Appeared:
Ritu Bhalla, S.K.Singla

R. C. Lahoti

( 1 ) THIS order shall govern the disposal of suits Nog. 421-A/88 and 440a/88 both arising between the same parties out of the same transaction/cause of action.

( 2 ). Indian Oil Corporation Ltd. , the petitioner/objector is an Oil Companyengaged inmanufacturing, sale and distribution of liquified petrol gas and otherproducts. By an agreement dated 6. 4. 77 entered into between it and the respondent M/s. Shriram Gas Service, the latter was appointed as the distributor for certain areas.

( 3 ). Here itself, it maybe relevant to extract and reproduce Clauses 27 and 28 of the contract between the parties. They are as under:

"27. Notwithstanding anything to the contrary herein contained, the Corporation shall also be at liberty at its entire discretion to terminate this Agreementforwith upon or at any time after the happening of any of the following eventsnamely:- (n) If the Distributor shall either by himself or by his servants or agentscommit or suffer to be committed any act which, in the opinion of theregional Manger of the Corporation for the time being at NEW DELHIwhose decision in that behalf shall be final, is prejudicial to the interestor good name of the Corporatio






















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