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2002 Supreme(All) 1133

IN THE HIGH COURT OF ALLAHABAD
M. Katju and K. N. Sinha, JJ.
DELHI GATE AUTO SERVICE STATION - Appellant
Versus
BHARAT PETROLEUM CORPN. LTD. - Respondents
C. M. W. P. 32568 Of 2002
Decided On : 08/29/2002

Advocates Appeared:
B.N.SINGH, Girdhar Nath, Ranjit Saxena, Satyendra Nath Srivastava

Opportunity of hearing should be provided before terminating an agreement with civil consequences, in accordance with the principles of natural justice.

Headnote:

Petrol Pumps - Termination of Dealership - Agreement 1971, Agreement 1998 - Opportunity of Hearing - Principles of Natural Justice

Fact of the Case:

The petitioner filed a writ petition against the termination of their dealership of petrol pumps and alleged attack by the respondent's officers. The respondent terminated the agreement without providing an opportunity of hearing.

Finding of the Court:

The court found that the petitioner was not given an opportunity of hearing before the termination of the agreement, which violated the principles of natural justice.

Issues: Opportunity of hearing before termination, Alleged attack on petitioner's pumps

Ratio Decidendi: Opportunity of hearing should be given before passing an adverse order with civil consequences, as per the principles of natural justice.

Final Decision: The writ petition was allowed, and the impugned order was quashed. The petitioner was allowed to continue operating the petrol and diesel pumps, with the option for the respondents to pass a fresh order after giving a show cause notice and opportunity of hearing to the petitioners.

M. KATJU, J.

( 1 ) THIS writ petition has been filed against the impugned order dated 2. 8. 2002 (Annexure-7 to the writ petition) terminating the dealership of the petitioner in respect of petrol pumps at Hari parvat, Delhi Gate, Agra and Keetham, Agra. The petitioner has also prayed for a mandamus directing the Director, C. B. I. . New Delhi to hold an enquiry regarding the alleged attack by the officers of the respondent No. 1 Corporation along with personal security guards and local police of the U. P. on the petrol and diesel pumps of the petitioners which are running for the last 40 years.

( 2 ) HEARD learned counsel for the parties.

( 3 ) ON 13. 1. 1971, an agreement was signed between the Burmah Shell Oil Storage and distribution Company of India Ltd. , Delhi and with Prakash Narayan Gupta and Shri Tarlochan singh Chaudhary vide Annexure-1 to the petition. By this agreement, the company granted licence from 1. 1. 1970 to enter upon the premises in question and to use the Motor Spirit and/or h. S. D. Pumps, Storage Tanks, Pipes and Fittings and all other facilities erected and provided by the company upon the said premises, for the purpose of the sale of the aforesaid items. For this, monthly licence fee has to be paid by the licencee. The Burmah Shell Oil Storage and distribution Company of India Ltd. was subsequently taken over by the Bharat Petroleum corporation, Ltd.

( 4 ) SUBSEQUENTLY, on 13. 8. 1998 another agreement took place between M/s. Mohinder Kaur chaudhary, Shri Amarjeet Singh Chaudhary and Bharat Petroleum Corporation Ltd. regarding two petrol pumps. One pump was at Delhi Gate. Hari Parvat, Agra and the other was at Agra mathura Road, Keetham, Agra. The first pump was only for selling petrol while the other was for selling diesel.

( 5 ) IN paragraph 3 of the writ petition, it is alleged that the performance of both the pumps was above normal but the machines provided by the Bharat Petroleum Corporation Ltd. were sometimes defective. It is alleged in this paragraph that the Sr. Inspector of the Weight and measurement Department after inspection of the Delhi Gate, Hari Parvat Pump on 18. 7. 2002 found that there was some defect in the machine vide Annexure-2 to the writ petition. It is alleged that the Mobile Lab Test Report, which is done on random basis, clearly shows that the sample qualifies the test specification and the petrol is absolutely pure and this shows the performance of the petitioner. A true copy of the report in this connection is annexed as annexure-3 to the petition.

( 6 ) IN paragraph 5 of the petition, it is alleged that from time to time meetings took place between the petitioners and Bharat Petroleum Corporation Ltd. Officers with regard to improvement of performance in sale and the petitioner was complying with all necessary formalities and was also obeying the instructions issued by the Bharat Petroleum Corporation Ltd. It is alleged in this paragraph that the Corporation was harassing the petitioner as the Corporation deliberately blocked a sum of Rs. 50 lacs of the petitioner and the petitioner was ruined. In this connection copy of the letter dated 15. 2. 2001 to the Chief Distribution Manager, Bharat Petroleum corporation, Ltd. At NOIDA is annexed as Annexure-4 to the petition. This letter was confirmed by the Territory Manager, Agra vide Annexure-5 to the petition. In paragraph 7 of the petition it is stated that in the inspection on 18. 7. 2002 the seals were found intact and no tampering had been done. It is alleged in paragraph 9 that the nature of irregularities mentioned in the report does not call for penal action against the petitioner as they were only of casual nature irregularities beyond the control of the petitioners. In paragraph 10 of the petition it is alleged that there were some fall in the sale on account of the general recession in the market. Moreover, the Corporation blocked Rs. 50 lacs of the petitioner. It is also alleged that the Corporation was not prov








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