IN THE HIGH COURT OF MADHYA PRADESH BENCH AT INDORE
Vijay Kumar Shukla, J.
Kanhaiyalal And Company – Appellant
Versus
Indian Oil Corporation Limited – Respondent
Writ Petition No. 22645 of 2022
Decided On : 13-10-2022
Termination of Dealership - Petroleum Products - MDG, 2012 Clause 8.9 - The court discussed the provisions of MDG, 2012 Clause 8.9, which provides the right to appeal within 30 days from the date of receipt of the order before the Appellate Authority. The court emphasized that the remedy of appeal before an independent higher authority is available to the petitioner against the impugned order and declined to entertain the writ petition, granting the petitioner 15 days to file an appeal as per Clause 8.9 of MDG 2012.
Fact of the Case:
The petitioner, a proprietorship firm engaged in the retail sales and supply of petroleum products, sought quashment of the order of termination of dealership and a direction to resume sales and supply of petroleum products to the retail outlets.
Finding of the Court:
The court found that an alternative and efficacious remedy of appeal before an independent higher authority is available to the petitioner against the impugned order, and declined to entertain the writ petition.
Issues: The main issue was the availability of an alternative and efficacious remedy of appeal under MDG, 2012 Clause 8.9.
Ratio Decidendi: The court held that when a statutory forum is created by law for redressal of grievances, a writ petition should not be entertained ignoring the statutory dispensation.
Final Decision: The court declined to entertain the writ petition, granting the petitioner 15 days to file an appeal as per Clause 8.9 of MDG 2012.
JUDGMENT
1. The petitioner is a proprietorship firm who is engaged in the business of Retail Sales and Supply of Petroleum Products that is Motor Spirit (Petrol) and HSD through its filling and service Station situated at Akodia Road, Shujalpur Mandi, Shujalpur, District-Shajapur (M.P).
2. In the instant petition filed under Article 226 of the Constitution of India, the petitioner has sought quashment of the order of termination of dealership dated 28/9/2022 and also prayed for a direction to permit the petitioner firm to operate the retail outlets situated at Akodia Road, Shujalpur Mandi, Shujalpur District- Shajapur. A direction has also been sought to resume the sales and supply of the petroleum products to the retail outlets of the petitioner firm.
3. The respondents on Caveat appeared and raised preliminary objections regarding maintainability of the present petition on the ground of availability of alternative and efficacious remedy of appeal under Clause 8.9 of Marketing Discipline Guidelines, 2012 (in short referred to as 'MDG'). It is submitted that as per Clause 8.9 of MDG, the petitioner can file an appeal within 30 days from the date of receipt of the order before the Appellate Authority (Executive Director)(Retail Sales)(South West) Head Office, Mumbai or any Executive Director, level Officer at the Head Office so nominated by the company) through Divisional Retail Head, Indore. Thus the petitioner has an efficacious, alternative remedy of appeal available to the petitioner before the Executive Director, Retail Sales (South West Mumbai) and, therefore, petition is liable to be dismissed on the ground of availability of alternative and efficacious remedy.
4. Counsel for the petitioner submitted that the remedy provided under Clause 8.9 is not efficacious remedy because the appeal is provided before the Executive Director whereas the order of termination of dealership has been approved by the Executive Director/State Head who is holding the equivalent post of the Appellate Authority, therefore, the said remedy is not efficacious and the petitioner has no other option, but to approach this Court for redressal of grievances. The impugned order of termination of dealership has been passed by Divisional Retail Head, Indore. In the impugned order, it is mentioned that the petitioner will have right under Claue 8.9 of MDG, 2012 to appeal within 30 days from the date of receipt of the order before the Appellate Authority (Executive Director)(Retail Sales)(South West) Head Office or any Executive Director level officer at the head office so nominated by the company through Divisional Retail Head, Indore DO.
5. It is submitted that before passing the order of termination, a personal hearing was afforded by MP State Office in which ED State Head MPSO was also one of the member and, therefore, the remedy of appeal before an officer of equivalent rank would not be efficacious and fruitless.
6. To appreciate the rival contentions of counsel for the parties, it is apposite to refer the relevant appeal provisions of MDG, 2012 Clause 8.9 which reads as under :
Appellate Proceedings 1. In case of termination arising out of invocation of MDG, the dealer will have the right to appeal within a period of 30 days from the date of receipt of order, before the Appellate Authority, through the concerned Divisional/Territory/Regional Office of the Oil Marketing Company (OMC). The Appellat Authority is empowered to decide the matter and the appeal shall be disposed off preferably within 90 days from the date of filing the appeal in the Divisional/Territory /Regional office of the concerned OMC.
2. For all appeals filed by the Dealer(s) on termination of their RO dealerships due to invocation of MDG, except termination in case of SC/ST dealerships, the Appellate Authority will be the ED (Retail) in the Head Office or any other ED level officer at the Head Office, so nominated by the Company. For all cases of termination of SC/ST dealerships, the appel
A. Venkatasubbiah Naidu vs. S. Chellappan
G. Veerappa Pillai vs. Raman & Raman Ltd.
GKN Driveshafts (India) Ltd. vs. ITO
H.B. Gandhi vs. Gopi Nath and Sons
Harbanslal Sahnia vs. Indian Oil Corporation Ltd.
Hindustan Petroleum Corporation Limited & Ors. vs. Super Highway Services & Anr. (2010) 3 SCC 321
K.S. Rashid and Sons vs. Income Tax Investigation Commission
K.S. Venkatraman and Co. (P) Ltd. vs. State of Madras
Kerala SEB vs. Kurien E. Kalathil
L.L. Sudhakar Reddy vs. State of A.P.
Mafatlal Industries Ltd. vs. Union of India
Municipal Council, Khurai vs. Kamal Kumar
N.T. Veluswami Thevar vs. G. Raja Nainar
Pratap Singh vs. State of Haryana
Punjab National Bank vs. O.C. Krishnan
Rajasthan STRC vs. Krishna Kant
Ramendra Kishore Biswas vs. State of Tripura
S.T. Muthusami vs. K. Natarajan
Sangram Singh vs. Election Tribunal, Kotah
Secy. Of State v. Mask and Co.
Shivgonda Anna Patil vs. State of Maharashtra
Siliguri Municipality vs. Amalendu Das
State of H.P. vs. Gujarat Ambuja Cement Ltd. (2005) 6 SCC 499
State of U.P. vs. Mohammad Nooh
Thansingh Nathmal vs. Suptd. of Taxes
The main legal point established in the judgment is that when an alternative and efficacious remedy of appeal is available to the petitioner, the court may decline to entertain a writ petition.
The court emphasized that termination of a dealership must follow due process and that Writ jurisdiction can be invoked when fundamental rights are at stake, despite the existence of alternative reme....
Termination of dealership without adhering to procedural guidelines and principles of natural justice is unlawful.
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 main legal point established is that the court has the authority to grant restoration of dealership despite the Arbitrator's limitation to grant only compensation, as per the mandate in Sec.14(1)....
Dealership - Allotment of retail outlet - Rule of exclusion of writ jurisdiction by availability of alternative remedy is rule of discretion and not one of compulsion - Inspite of availability of alt....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.