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MILIND RAMESH PHADKE
Sonika Automobiles (M/s. ) – Appellant
Versus
Bharat Petroleum Corporation Ltd. – Respondent
ORDER
1. The present petition under Article 226 of the Constitution of India is preferred seeking following reliefs:
“(i) That, this Hon'ble Court may kindly be pleased to issue an appropriate writ/order/direction quashing the order dated 24.2.2007 passed by respondent No.2.
(ii) Any other writ/order or direction deemed fit and proper in the facts and circumstances of the case necessary be also passed with costs to the petitioner.”
2. Short facts of the case are that the distribution of petroleum products i.e. M.S and H.S.D is being done by the dispensing units installed on the retail out-lets of the petitioner. The said dispensing units are owned by “Bharat Petroleum Corporation Ltd.” for which rent is deducted from the commission received by the petitioner from the sale of petroleum products. A duly authorized fitter of the petroleum company is responsible for the proper functioning and maintenance of the dispensing units. The dispensing units installed on the retail out-let of the petitioner have been subjected to maintenance by the concerning fitter on various occassions. One of such inspection was carried out on 12.9.2006 by the authorized fitter and no irregularity was fo
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 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....
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