Stipulation not sufficient for holding contract void.

ORDER: Both the petitioners in the C.R.Ps. are dealers in petroleum products and the respondents is the Corporation which distributes petroleum products. Alleging that the samples taken from the petitioner’s outlets were not in accordance with the standards applicable, the respondents had issued show-cause notices on both the petitioners. The petitioners apprehending that supply would be stopped, filed suits for declaration that the show-cause notice is null and void and for consequential injunction. The trial Court as well as the appellate Court refused to grant injunction and therefore, the revisions have been filed.

2. Mr.T.V. Ramanujam, senior counsel and Mr.Venkataraman appeared for the petitioner in the C.R.P. No.2868 of 2001 and Mr.M. Venkatachalapathy, senior counsel appeared for the petitioner in C.R.P. No.2516 of 2001. Mr.O. Santhanakrishnan took notice and made his submissions on behalf of the caveator/ respondent.

3. The grievance of the petitioners is fairly identical. According to them, the samples were taken from the petitioners’ bunks on 1.11.2000 and 3.11.2000 (C.R.P. Nos.2516 and 2868 of 2001 respectively) and though a time limit is stipulated for sending the samples for testing as per the regulations, the test was conducted beyond this time and therefore, since there is likelihood of a change in the physical properties of the fuel, the result obtained cannot be said to reflect the correct density and other parameters of the petroleum products drawn from the petitioner’s bunks. The petitioners also refer to the Motor Spirits and High Speed Diesel Control (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 1998, wherein it is stipulated that sample should be drawn only if density is not found in order and that in the instant case, the respondents’ results show that the density is in accordance with the standards specifications and therefore, the respondents ought not to have drawn the samples. The petitioners also submitted that when supply is effected, the delivery challan will denote the density, but not the RON result and the petitioners also have equipments only for three tests and not for RON. Therefore, in the absence of any material to show that the fuel supplied by the respondents match the standard specification as regards ROB, the petitioners cannot be purchased because there was a variation in the reading. It was also submitted that the show-cause notice did not enclose the test result and this was in violation of the principles of natural justice. If the petitioners had been furnished with the test report, there would have been some opportunity to meet the charges, but now the petitioners have been denied that. The respondents have not specified in what way the petitioners have committed breach of the terms of the agreement. While the petitioners conceded that under the agreement, the respondents have the power to terminate it, they would submit that it goes without saying that this power can be exercised only in a reasonable manner. One of the defences raised by the respondents was that the suit was pre-mature. To this, the petitioners would answer that anticipating stoppage of sales, the suit was filed and the moment injunction was vacated, the supply was immediately stopped and this would show that the apprehension is justified. They would also submit that injunction cannot be denied to them merely on the ground that they have the alternative remedy of damages. For one, it is impossible to quantify the damages that will be sustained by them if sales is stopped for 45 days and secondly, the loss of reputation that will be suffered by the petitioners if the bunk is closed on account of alleged adulteration cannot be calculated and they may lose their clientele. Thirdly, the loss that will be suffered by the employees of the petitioners who earn their livelihood cannot be measured and in contrast to this, the respondents will not suffer any hardship because, even after the t

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