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JAGMOHAN BANSAL
Suman Sheoran Alias Suman Chahal – Appellant
Versus
Indian Oil Corporation Limited – Respondent
| Table of Content |
|---|
| 1. termination of lpg distributorship dispute (Para 1 , 2 , 3) |
| 2. arguments regarding alleged misconduct (Para 4 , 5) |
| 3. court's analysis on due process and evidence (Para 6 , 7) |
| 4. order for fresh considerations by the corporation (Para 8 , 9) |
JUDGMENT
Mr. Jagmohan Bansal, J. (Oral)
The petitioner through instant petition under Article 226 of the Constitution of India is seeking setting aside of order dated 30.06.2022 (Annexure P-5) whereby Indian Oil Corporation Limited (for short hereinafter referred to as 'corporation') has terminated LPG Distributorship of the petitioner.
2. The brief facts necessary for adjudication of the present petition are that the petitioner pursuant to advertisement applied for LPG Distributorship. In the draw of lots, the petitioner on 30.08.2016 was declared as a successful candidate. The petitioner was granted Letter of Intent ('for short LOI') on 07.11.2016. An agreement dated 16.03.2017 (Annexure P-2) came to be executed between the petitioner and the corporation. The petitioner at that point of time was a widow lady and she was staying with her in-laws.
3. In the year 2021, mother-in-law of the petitioner lodged a complaint alleging tha
The court emphasized that termination of business agreements requires adherence to principles of natural justice, including the right to a personal hearing, and that mere allegations without substant....
The court emphasized the importance of providing accurate and complete information in the application for dealership agreements, and upheld the contractual grounds for termination based on the incorr....
The termination of a distributorship on arbitrary grounds without sufficient notice or opportunity for defense is unjustified, especially when compassion was a basis for its allotment.
The court established that termination of a distributorship must adhere to due process and contractual obligations, emphasizing the need for prior consent in partnership arrangements.
Natural justice principles mandate that parties should be afforded opportunity to explain before termination; disputes under contracts with arbitration clauses should not be resolved in writ petition....
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