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1994 Supreme(Del) 764

USHA MEHRA
INDIAN OIL CORPORATION – Appellant
Versus
INDIRA SOOD – Respondent


Advocates Appeared:
P.K.Jaitely, RAKESH LUTHRA

Usha Mehra,j.

( 1 ) LPG distributionship was awarded to Mrs. Indira Sood, sole proprietor of M/s Vikas Gas Agency (In short the agency ) under the DGR Scheme for the rehabilitation of war effected widows of the defence personnel and their dependents. The Distributionship Agreei-ient was signed on 24th September,1975. The said agreement contained an arbitration clause No. 37 which provided that in case of any dispute the matter shall be REFERRED TO to the arbitration of the person to be appointed by the Managing Director of the Indian Oil Corporation (In short the corporation ). Dispute arose between the Corporation and the Agency. The Corporation preferred TO a claim against the Agency on account of its failure to clear the outstanding amounts. Corporation terminated the dealership vide letter dated 8th April,1992 because the Agency issued unauthorised connections. Hence the Agency preferred TO claim against this termination of dealership. Two references were made to the arbitrator - one of the Corporation and the other of the Agency. Sh. S. K. Gupta was appointed as the Arbitrator by the Managing Director as per Clause 37 of the Contract. Parties had been appearing before the A

















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