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2021 Supreme(All) 1434

IN THE HIGH COURT OF ALLAHABAD
SUNITA AGARWAL, JAYANT BANERJI, JJ.
Virendra Pal and Another - Petitioners
Versus
State of U.P. and Others - Respondents
Writ - C No. 13514 of 2018
Decided On : 12-03-2021

Advocates Appeared:
For the Petitioner: Akhilesh Kumar, Amber Khanna, Raj Kumar Khanna, Shiv Nath Singh.
For the Respondent: C.S.C., Anand Tiwari, Ishan Shishu, Pankaj Saksena, Prakash Padia, Rakesh Kumar.

Headnote:

Indian Partnership Act' 1932 - Hindu Marriage Act' 1955 - Section 13-B - Arbitrations and Conciliation Act 1996 - Mandamus - Seek for quashing of order - Petitioner No.1 had applied and submitted application form for allotment of Rajiv Gandhi Gramin LPG Vitrak distributorship (RGGLV) in the open category at Bhamora, Tehsil Aonla District Bareilly under an advertisement issued by the Indian Oil Corporation Limited. After selection by an interview, letter of intent had been issued to the petitioner No.1 - Few pre-conditions set out in the letter of intent for commissioning of distributorship are relevant to be extracted – Held, court may, however, note that the order does not indicate that any show cause notice was issued to partner(s) or firm to explain as to why supply be not suspended as dispute between them had adversely affected business - Further in the previous writ petition while relegating petitioner No.1 herein to approach the Corporation the validity of action taken by Corporation for suspension of supplies had not been looked into - In view of the above, without entering into merits of action of Corporation in suspending the supplies by order, court only keep it open that existing distributorship firm, if approaches Corporation with the request to run its business or restore supplies, the Corporation shall take a decision by passing a reasoned and speaking order strictly in accordance with its policy - It is further made clear that pendency of any negotiations for settlement between contesting parties would not preclude Corporation from taking such lawful steps in interest of its business as it deems fit - Writ petition disposed of.

JUDGMENT :

1. Heard Sri R.K. Khanna, learned counsel for the petitioners and Shri Anand Tewari, learned counsel for the respondent-Corporation. Shri Pankaj Saxena appears on behalf of the respondent no. 7.

2. By means of the present writ petition, the petitioners seek for quashing of the order dated 09.01.2018 passed by the respondent No.4, Deputy General Manager, (LPG Sales), Indian Sub-Divisional Officer, Indian Oil Corporation, Bareilly, Area office, Bareilly.

3. Further prayers in the writ petition are as under:-

    "(ii) Issue a writ, order or direction in the nature of mandamus, commanding and directing the respondents to re-constitute the proposal of Partnership Deed of the petitioner No.1 and the name of the petitioner No.2 may be added in place of Ex wife of the petitioner, namely Smt. Priti Srivastava (Respondent No.7.)

(iii) Issue a writ, order or direction in the nature of mandamus commanding the respondents to re-start the proper supply of LPG for the petitioner's firm."

4. Brief facts relevant to decide the controversy are that the petitioner No.1 namely Virendra Pal had applied and submitted application form for allotment of Rajiv Gandhi Gramin LPG Vitrak distributorship (RGGLV) in the open category at Bhamora, Tehsil Aonla District Bareilly under an advertisement dated 17.10.2009 issued by the Indian Oil Corporation Limited. After selection by an interview, letter of intent had been issued to the petitioner No.1 on 08.02.2011. Few pre-conditions set out in the letter of intent for commissioning of distributorship are relevant to be extracted hereunder:-

    "(i) Operate the RGGLV personally. However you will induct your spouse who will be co-owner as 50% partner.

(ii) Shift your residence to Bhamora (if you are presently staying away from the location) in order to personally operate the RGGLV as stated para 3.3. above and give us a written undertaking to this effect.

(iii) If already employed, you will have to submit acceptance of resignation letter from your employer prior to the issuance of Appointment Letter by us."

(iv) You will have to undergo training on RGGLV operation for one of two weeks after which you will have to take a quiz. Your score should not be less than 80% marks. Failing which you will have to again undergo re-training so that you can score minimum 80% marks.

(v) After you have complied with the conditions spelt out herein above, you will be confirmed/formalized by an Appointment Letter followed by the signing of our standard RGGLV Agreement by both you and us.

(vi) You will be required to deposit interest free refundable security deposit of Rs.2 lakhs. We will have the right to adjust any dues to us from this amount at the time of resignation/termination. However, in case of termination of the RGGLV on account of proven malpractice, the said security deposit shall be forfeited."

5. It was further provided that after compliance of the conditions spelt out in the letter of intent including those extracted above, commissioning of distributorship would be confirmed/formalized by an appointment letter followed by the signing of the standard agreement between the Corporation and the selected person/petitioner herein.

6. The letter of appointment dated 28.11.2011 was, thereafter, issued on fulfillment of the conditions in the letter of intent. It was indicated therein that as per the terms of the advertisement and the letter of intent, the spouse of the petitioner would be 50% partner. It also contained a condition that in case the selected person was unmarried or widow or widower or divorcee, an undertaking in the attached format had to be given.

7. It further appears from the record that a partnership deed was executed between the petitioner and his ex-wife, i.e. respondent No.7 herein, copy whereof has been appended in the counter affidavit of the respondent No.7. The partnership deed contains some clauses as under:-

    "14. That in case of death of any partners hereto the partnership firm shall not be dissolved but the

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