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2001 Supreme(Guj) 783

Gujarat High Court
Judgename :K.M.MEHTA
MANDAVRAIJI FILLING STATION - Appellant
Versus
INDIAN OIL CORPORATION LIMITED - Respondent
S.C.A. 3659 of 2001
Decided On : 11/09/2001

Advocates Appeared: DEVANG VYAS, HRIDAY BUCH, K.S.Nanavati, KETAN DAVE, N.D.NANAVATI, P.G.DESAI, TUSHAR MEHTA

Headnote:

Constitution of India Under Articles 226/227 - Filling Station - Indian Oil Corporation Limited - Challenging the notice - Issued Indian Oil Corporation Limited - Challenged that though actual order of termination has not been - Petitioner reliably learnt that an order terminating the dealership agreement - Business of dealership of retail out - Applied for and is granted licence for sale of petroleum products under the provisions of the Gujarat Essential Articles - Licensing, Control and Stock Declaration - Order, 1981 - Civil Supply authorities had visited one retail outlet - Civil Supply authorities took statements of the employees of the said retail outlet - Test to arrive at substantive satisfaction - Adulteration in the petroleum products - Civil Supplies authorities showed that the petroleum products, namely, motor spirit and high speed diesel, conformed to the standards specified under the law - Held, apprehended termination would be passed – Premature (V) The rights and obligation between the parties are governed by the contract and as per clause 58 of the contract, IOC can take appropriate actions, including termination (VI) - Dispute being in the realm of contract, under Art. 226, this court would not interfere, when the proposed action is not arbitrary or unjustifiable - Petitioner is not entitled to any equitable order from this court regarding injunction - Petition is therefore liable to be rejected with no order as to costs. Interim relief stands vacated - petitions are rejected.

K. M. MEHTA, J.

( 1 ) M/s. Mandavraiji Filling Station-petitioner has filed this petition under Articles 226/227 of the Constitution of India challenging the notice dated August 4, 2000 issued by the Indian Oil Corporation Limited respondent No. 1 (hereinafter referred to as the `ioc) herein and also challenged that though actual order of termination has not been passed by the respondent No. 1, the petitioner reliably learnt that an order terminating the dealership agreement of the petitioner would be passed and challenging the said action of the respondent the petitioner has filed this petition.

( 2 ) THE facts giving rise to this petition are as under:2. 1 the petitioner is a dealer of the respondent Indian Oil Corporation Limited. The petitioner has been granted dealership of retail out-let for sale of motor spirit (petrol) and high speed diesel at village Sara, Taluka Muli, District Surendranagar and he is carrying on business of dealership of retail out-let of respondent No. 1 which is a `b site retail outlet. 2. 2 it has been stated that the petitioner had applied for and is granted licence for sale of petroleum products under the provisions of the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981 (hereinafter referred to as `licence Order ). The Civil Supply authorities had visited one retail outlet known as "shree Jai Somanth Trading Company" situated at Wankaner Boundary, Taluka Wankaner, Dist. Rajkot. The Civil Supply authorities took statements of the employees of the said retail outlet. The Civil Supply authorities checked the retail outlet on 28. 4. 2000. When they visited the retail outlet of the petitioner, they carried out a test known as `density Test which is the test to arrive at substantive satisfaction as to whether there is any adulteration in the petroleum products. However, it appears that the density test carried out by the Civil Supplies authorities showed that the petroleum products, namely, motor spirit and high speed diesel, conformed to the standards specified under the law. However, the Civil Supplies authorities on specific information that solvent was being mixed to motor spirit (petrol) and high speed diesel thus adulterated, carried out raid on 28. 4. 2000 and passed an order of seizure and sealed the retail outlet. 2. 3 being aggrieved by the said action, the petitioner filed Special Civil Application No. 4406 of 2000 before this court. 2. 4 during the pendency of the aforesaid petition, the samples collected were sent for laboratory inspection. The respondent Civil Supplies Authorities pointed out before this court that they have received test results of high speed diesel and the said product is found to be matching with requirements specified under law. In view of the same this court was pleased to pass order on 24. 5. 2000 directing the authorities who were respondents in the said writ petition to lift the seizure order qua high speed diesel latest by 26. 5. 2000. So far as the samples of motor spirit are concerned, this court permitted the petitioner to get the same tested through an approved laboratory. 2. 5 in view of the same, the District Collector passed an order lifting seizure qua diesel on 25. 5. 2000. On 29. 5. 2000 the proprietor of the petitioner-firm came to be detained under the provisions of the prevention of Black Marketing and Maintenance of Supply of Essential Commodities Act. 2. 6 the petitioner filed an application on 16. 6. 2000 before the District Supply Officer, Surendranagar, requesting the said authority that two samples given to the petitioner under clause (V) of the Central Government Control Order of 1998 may be sent by the said authority to any of the approved laboratories. IOC was not a party to the proceedings. 2. 6 on 20. 6. 2000 the District Supply Officer, Surendranagar, informed the petitioner that it is for the petitioner to get the same tested as per the order dated 29. 5. 2000 and therefore the said authority will not se













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