The principle of adherence to the principles of natural justice and the justification of termination based on the dealer's involvement in malpractices.

JUDGMENT :

1. The writ jurisdiction of this Court conferred by Article 226 of the Constitution of India has been sought to be invoked by this present petition. The petitioner is aggrieved by a communication dated 25.11.2019 by which his dealership of an oil station was terminated. The petitioner contends that such termination is in gross violation of the principles of natural justice and is otherwise unsustainable in law.

2. Before going into the issues involved, the brief facts of the case are narrated hereinbelow.

3. The petitioner is the dealer of oil pump station in the name and style M/s Dulal Sales & Service Station, Ruposhi in the district of Dhubri. The petitioner had opened the said dealership of IOCL in the year 2008 and claims to be operating the retail outlet to the full satisfaction of all concerned and without any complaint. On 29.03.2018, an inspection was carried out by a team of IOCL official belonging to the Anti Adulteration Cell (AAC). On such inspection, some additional unauthorized fitting like “Double Metallic Gear” in MIDCO mechanical dispensing unit was allegedly found, which the petitioner had denied.

4. Thereafter, on 24.04.2018, the IOCL authority sought for explanation from the petitioner which the petitioner had replied on 17.05.2018. It is the case of the petitioner that after a long period of time, on 14.02.2019, a joint inspection was carried on and thereafter a minutes of meeting of the same date was prepared. Based upon the said minutes, on 10.06.2019, the Deputy General Manager of the Corporation issued Show-Cause Notice to the petitioner for violation of the Marketing Discipline Guidelines -2013 to which the petitioner replied on 24.06.2019. The petitioner has admitted that a personal hearing was afforded on 17.10.2019, on which date, apart from the personal hearing, the petitioner had submitted a written note. However, vide the impugned order dated 25.11.2019, the dealership was terminated. The petitioner contends that the impugned order was passed without furnishing the documents relied upon and thereby the petitioner was deprived of a fair and reasonable opportunity to defend his case.

5. The Corporation has filed an affidavit-in-opposition on 11.05.2020 denying the case of the petitioner by stating that the allegation was grave in nature and the termination was done after affording all procedural safeguards.

6. I have heard Shri S. Borthakur, learned counsel for the petitioner. I have also heard Shri DK Sharma, learned Standing Counsel for the Indian Oil Corporation Limited. The learned Standing Counsel has also placed before this Court the records of the case.

7. Shri Borthakur, learned counsel for the petitioner has submitted that in the inspection held on 29.03.2018, a “Double Metallic Gear” was found attached to the pumping machine and accordingly, the fuel station was sealed. Thereafter, on 14.02.2019, another inspection was made and without granting a reasonable opportunity, the dealership was terminated vide the impugned order dated 25.11.2019.

8. Shri Borthakur, learned counsel for the petitioner has submitted that as an owner, there is absolutely no scope to install a “Double Metallic Gear” in the device. By drawing the attention of this Court to the inspection report dated 29.03.2018, he submits that it would be evident that the previous inspection was done on 21.03.2018 and in this period of eight days, attaching a device of the present nature is not possible. The learned counsel further submits that the petitioner, who is the dealer, was not personally present at the time of the inspection on 29.03.2018 and it was only one of his representatives who did not know much about the system was present. He has further submitted that in the second inspection which was carried out on 14.02.2019, it was found, amongst others, that positions of some of the holographic seals had changed from the original position and conditions of the some of the holographic seals were deformed.

9. The