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JAGMOHAN BANSAL
Rajpura Service Station – Appellant
Versus
Bharat Petroleum Corporation Limited – Respondent
JAGMOHAN BANSAL, J.
1. Through this common order, both the captioned petitions are disposed of as the same are interconnected. For the sake of brevity and convenience, facts are borrowed from CWP-26964-2017.
2. The petitioner through instant petition under Articles 226/227 of the Constitution of India is seeking setting aside of order dated 31.03.2017 (Annexure P-24) whereby respondent No.2 has terminated dealership agreement executed between petitioner and respondent No.1-Bharat Petroleum Corporation Limited (for short the ‘corporation’).
3. The brief facts of the case which are necessary for the adjudication of the present petition are that the petitioner, a partnership firm, on 28.10.1989 was allotted petrol pump. On 28.04.2014, an inspection was conducted by the officials of the corporation and no irregularity in the Dispensing Units (for short ‘DU’) was found. On 17.06.2014, a team from Quality Control Cell of the corporation inspected premises of the petitioner. An inspection report dated 17.06.2014 was prepared. In the said report, it was noticed that there is additional fitting i
The court upheld the termination of the dealership agreement based on the critical irregularities as per the Marketing Discipline Guidelines.
The Court held that the authorities' decision to terminate the dealership agreement was not arbitrary or unreasonable and that the petitioner had an alternative remedy available through a pending civ....
The judgment established that administrative decisions based on misreading of documents, ignorance of evidence, and without recording reasons are arbitrary and violative of principles of natural just....
The court emphasized the necessity of adhering to principles of natural justice in administrative actions, ruling that reliance on undisclosed evidence rendered the termination of the dealership arbi....
Termination of dealership without adhering to procedural guidelines and principles of natural justice is unlawful.
The main legal point established in the judgment is the application of the principles of natural justice and the limitations of the High Court's jurisdiction in re-appreciating evidence.
The court established that tampering with the dispensing unit, deficiency in fuel discharge, and failure to report the shortfall constituted a critical irregularity justifying dealership termination.
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