An arbitrator cannot award restoration of distributorship, which amounts to specific performance of a terminable contract, as it is prohibited under Section 14(1)(c) of the Specific Relief Act, 1963.

( 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 Corporation or its products, the Regional Managershall not be bound to give reasons for such decision. 28. Without prejudice to the foregoing provision or anything to the contraryherein contained, either of the parties hereto, namely, the Corporation or thedistributor, shall be entitled to terminate this Agreement by giving thirty days notice to the other party without assigning any reason for such termination. "

( 4 ). Clause 37 of the agreement provides for adjudication by arbitration of anydispute or differences of any nature whatsoever arising between the parties out ofthe contract.

( 5 ). On 13. 2. 1982, the claimant petitioner served the respondent with a notice to the following effect:

"regd. AD/upc/by hand No. LIG/114m/s Shri Ram Gas Serviceindian Distributor,r. Market B-21/1 Kamachhavaranasi. Re: INDANE DISTRIBUTORSHIP AT VARANASIDear Sirs,reference may please be made to our LPG distributorship agreement dated6. 4. 1977 executed between you and the Indian Oil Corporation Ltd. Clause 27of the distributorship agreement reads as under:"27. Notwithstanding anything to the contrary herein contained, the Corporation shall also be at liberty at its entire discretion to terminate this Agreementforthwith upon or at nays time after the happening of any of the followingevents namely:- (n) If the Distributor shall either by. himself or by his servants or agents commit or suffer to be committed any act which, in the opinion of theregional manager 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 Corporation or its products, the Regional Managershall not be bound to give reasons for such decision. It has come to our knowledge that you or your servants/agents have committed the following: (i) that you arein the habit of giving ex showroom deliveries of refills, andout of turn supplies of refills to customers. (ii) on a surprise check shortage of 22 cylinders and 1237 pressure regulators was found. (iii) that you are neither weighing nor checking the leakage with soapsolution before supplying the filled cylinders to the customers. (iv) that complaints have been received regarding leakage of cylinders. resulting in accidents. The above acts jointly and severally in my opinion are acts which are prejudicial to the interest and good name of the Corporation or its products andaccordingly in exercising my right under the above noted clause, I herebyorder that the LPG distributorship agreement stands forthwith terminatedand canceled and you shall cease to be our LPG distributor at Varanasi withimmediate effect. You are hereby called upon to settle all you accounts with the Corporation andimmediately handover, return and redeliver the entire stock of LPG filled/empty cylinders/equip