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2008 Supreme(Mad) 745

P.JYOTHIMANI
D. Nagarajan & Co. – Appellant
Versus
The Chief Regional Manager and duly Constituted Attorney Hindustan Petroleum Corporation Ltd. – Respondent


Advocates Appeared:
For the Petitioner:AR.L. Sundaresan, Sr. Counsel, A.L. Gandhimathi, Advocates.
For the Respondent:Ravi Ananthapadmanabhan, Advocate.

Judgment :-

The writ petition is filed challenging the show-cause notice issued by the respondent dated 9. 2007 by which the petitioner is directed to show-cause as to why action including the termination of dealership agreement cannot be taken against the petitioner in accordance with clauses 55(I) and (K) for violation of clauses 26 and 42 of the dealership agreement by giving 7 days time to the petitioner.

2. The petitioner company was appointed as a dealer for sale of petroleum products of the respondent Corporation from 1962 and an agreement was entered into subsequently on 6. 1981. On 18. 2007, an inspection was conducted in the retail outlet of the petitioner by M/s. SGS India Private Limited and on test of sample; it was observed that nozzle sample of both MS & HSD have failed in the Marker Test as they were found to have turned into pink. Thereafter, the nozzle samples of MS/HSD in Marker Test and the Tank Truck Retention samples and nozzle samples were collected from the outlet jointly by SGS and the respondent on the same day and sent for Joint Test. In the Joint Marker Test conducted on 18. 2007, it was observed that MS and HSD drawn from the outlet failed in the Marker





































































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