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SHEKHAR B. SARAF, MANJIVE SHUKLA
Maharashi Filling Station (Indian Oil Dealer) – Appellant
Versus
Indian Oil Corporation Ltd. U. P. State Officer – Respondent
JUDGMENT :
1. Heard learned counsel appearing for the petitioner and learned counsel appearing for the respondents.
2. Petitioner through this writ petition has challenged the order dated 29.7.2017 passed by the Chief Divisional Retail Sales Manager, Indian Oil Corporation Ltd., Kanpur Divisional Office, Kanpur whereby petitioner’s retail outlet dealership and dealership agreement have been terminated with forfeiture of the security amount.
3. Facts of the case, in brief, are that petitioner was appointed as a dealer by the Indian Oil Corporation Ltd. and in the year 2007 a retail outlet was established in the name and style of M/s Maharashi Filling Station, Kulpahar, Mahoba Road, District Mahoba. A dealership agreement was executed in between the petitioner and the Indian Oil Corporation Ltd. on December 6, 2007 and thereafter petitioner started running the retail outlet. On May 6, 2017, inspection was carried out on the petitioner’s retail outlet by a team comprising of the officers of the District Administration, officers of the Indian Oil Corporation, police officers, officers of the Department of Weights and Measures, officers of the Department of Civil Supplies, OEM Midco Engin
The presence of unauthorized fittings in a dispensing unit constitutes a breach of the dealership agreement, justifying termination of the dealership.
The court upheld the cancellation of a diesel sale license due to confirmed tampering of dispensing units, establishing the dealer's responsibility for maintaining equipment integrity.
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.
Consideration of the petitioner's defense and the expert opinion of the OEM is crucial in dealership termination cases to ensure compliance with principles of natural justice.
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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