1991 Supreme(Guj) 336
Gujarat High Court
Judgename :A.N.DIVECHA
CHHAGANLAL LAVJIBHAI KALARIA - Appellant
Versus
CHAIRMAN and MANAGING DIRECTOR BHARAT PETROLEUM CORPORATION - Respondent
C.A. 145 of .
Decided On : 12/02/1991
Headnote:
Indian Evidence Act 1872 –Section 106 – Constitution of India Article. 14 – (Development and Regulation) Act 1951 – Facts giving rise to this Appeal may be summarised appellant entered into an Agreement for dealing in petroleum products supplied by Bharat Petroleum Corporation Ltd. at the retail outlet situated Agreement for Dealership executed between the parties on the record of the Trial Court there under the present appellant was given a licence to deal in petroleum products at the petrol pump supplied by the Corporation thereof he agreed not to change the constitution of the licensees firm nor to dissolve the partnership nor to admit new members as partners nor to allow any partner to withdraw from the partnership without obtaining the previous consent in writing of the Corporation. Clause 12 thereof empowered either party to put the licence to an end by giving not less notice in writing to the other side. Clause 13 (a) (vii) empowered the Corporation to terminate the Agreement forthwith if the licensees were found guilty of a breach of any of the covenants and stipulations on their part contained in the Agreement pursuant to the Agreement the present appellant started running the petrol pump in the name and style of Kataria Petroleum –Held, Court find considerable force in the submission made before me by Shri Jani for the appellant to the effect that the action of termination of the Dealership Agreement is quite harsh on the record of the Trial Court is issue volume 3 of Bharat Petroleum News Letter for thereof is found published the photograph of the present appellant styling him as a resourceful dealer the write-up which is above and before the photograph are showered praises for his good work as a dealer conducting the dealership business at the petrol pump fact that the present appellant is a member of the scheduled caste is also taken note of in the write-up thus becomes clear that he has been able to earn laurels and win acclaim from the authority of the Corporation for his good performance in conducting the affairs of the dealership business at the petrol pump transpires from the oral testimony of the witness at examined on behalf of the Corporation at trial that the dealership for the petrol pump in question was reserved for a member of the scheduled caste is true that the Corporation has to see that the dealership business at the petrol pump in question is not assigned to any other person in breach of the relevant covenant contained in Clause 10 of the Dealership Agreement at idea may be that the dealership business is not assigned to a person without the consent of the Corporation to whom it might not have chosen to assign that business in the first instance. It is possible that the dealership business at the petrol pump might come to be assigned under the guise of partnership to a person who may not be belonging to the scheduled caste court told at the bar that said Amritlal Gada does not belong to the scheduled caste
( 1 ) THE Original Plaintiff of Civil Suit No. 9110 of 1983 decided on 1/10/1984 has preferred this Appeal against the judgment and the decree passed by the learned City Civil Judge of Court No. 6 at Ahmedabad. Thereby the learned Trial Judge dismissed the present appellants suit.
( 2 ) THE facts giving rise to this Appeal may be summarised thus: The appellant entered into an Agreement on 1 4/05/1981 for dealing in petroleum products supplied by Bharat Petroleum Corporation Ltd. (the Corporation for convenience) at the retail outlet situated at Boriavi Taluka Nadiad District Kheda (the petrol pump for convenience ). The Agreement for Dealership executed between the parties on 14/05/1981 is at Exh. 25 on the record of the Trial Court. Thereunder the present appellant was given a licence to deal in petroleum products at the petrol pump supplied by the Corporation. Under Clause 10 (s) thereof he agreed not to change the constitution of the licensees firm nor to dissolve the partnership nor to admit new members as partners nor to allow any partner to withdraw from the partnership without obtaining the previous consent in writing of the Corporation. Clause 12 thereof empowered either party to put the licence to an end by giving not less than 90 days notice in writing to the other side. Clause 13 (a) (vii) empowered the Corporation to terminate the Agreement forthwith if the licensees were found guilty of a breach of any of the covenants and stipulations on their part contained in the Agreement. Pursuant to the Agreement the present appellant started running the petrol pump in the name and style of Kataria Petroleum. It appears that the present appellant executed one Partnership Deed on 4/10/1982 to carry on the business at the petrol pump in partnership with one Amritlal Gada. Under Clauses 5 and 12 thereof it was stipulated that the admission of said Amritlal Gada to partnership was subject to approval by the Corporation. A copy of the partnership deed executed between the present appellant and said Amritlal Gada on 4/10/1982 is at Exh. 24 on the record of the Trial Court. It appears that the present appellant some time on 23rd December 1982 requested the Corporation for a permission to change the name of his dealership business from Kataria Petroleum to Raja Petroleum Services. By its letter of 24/12/1982 no such permission to change the name of dealership business was given to the present appellant. This communication containing such rejection of permission is at Exh. 26 on the record of the case. It appears that the Corporation somehow came to know that the present appellant had entered into partnership with said Amritlal Gada. Thereupon one communication of 27/12/1982 came to be addressed in the name of Kataria Petroleum which is at Exh. 27 on the record of the Trial Court. Therein the present appellant was informed that it had come to the notice of the author of the said communication that the appellant had taken a partner by the name of Amritlal Premji Gada in the formers dealership business without the express permission from the Corporation. It was indicated that such action on his part would amount to a breach of the Clause 10 (s) of the Agreement at Exh. 25. He was asked to inform the Corporation whether or not he had taken any partner in his dealership business that is in his business of running the petrol pump. It appears that the present appellant caused his reply thereto on 4/01/1983. His reply is at Exh. 29 on the record of the Trial Court. Therein he mentioned that he had submitted a separate application on 28th December 1982 seeking permission from the Corporation for admitting a partner to his dealership business. The present appellant further indicated therein that he had not committed any breach of the Agreement till then as he had not taken any partner in the dealership business. He also requested the Corporation thereby to permit him to take a partner in his dealership business with a view to