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2025 Supreme(MP) 28

IN THE HIGH COURT OF MADHYA PRADESH
Milind Ramesh Phadke, J.
Sonika Automobiles (M/s.) v. Bharat Petroleum Corporation Ltd.
Writ Petition No. 1311 of 2007 (G); Decided on 24.1.2025*

Advocates appeared:
N.K. Gupta with Y.P.S. Rathore for petitioner; K.N. Gupta with Miss Suhani Dhariwal for respondents.

Headnote:

Standards of Weights and Measures (Enforcement) Act, 1985 -- Ss. 24 and 26 -- validity and verification of dispensing unit -- petitioner distributor of petroleum products -- dealership agreement terminated on ground of tampering with dispensing unit to give effect to malpractice of short delivery -- contradictions in averment of corporation in Court reply and joint observation report -- extraction of controller-cum-display card not proved to be done at time of surprise inspection -- affidavit furnished to cover up anomalies regarding time of opening sealed envelope containing controller card -- irregularities found in relation to dispensing unit cannot be attributed to petitioner -- breach of condition of dealership agreement not established -- termination order set aside. (2018) 9 SCC 235 and (2018) 11 SCC 778 distinguished. [Paras 29 to 36]

ckV v©j eki ekud ¼çorZu½ vfèkfu;e] 1985 & èkkjk 24 rFkk 26 & forjd bdkà dh fofèkekU;rk rFkk lR;kiu & ;kph isVª¨fy;e mRikn¨a dk forjd & vYi ifjnku d¢ vukpkj d¨ çÒko nsus d¢ fy, forjd bdkà esa NsM+NkM+ djus d¢ vkèkkj ij O;ogkjh djkj lekIr fd;k x;k & U;k;ky;hu mÙkj rFkk la;qä laçs{k.k çfrosnu esa fuxe d¢ çdFku¨a esa fojks/kkHkkl & vkdfLed fujh{k.k d¢ le; fu;a=d≶&laçn'kZu dkMZ fudkyk tkuk lkfcr ugÈ & ftl eqgjcan fyQkQs esa fu;a=d dkMZ Fkk mls [k¨yus d¢ le; d¢ lacaèk esa fo"kerkv¨a d¨ &#2338adus d¢ fy, 'kiFki= fn;k x;k & forj.k bdkà d¢ lacaèk esa ikà xà vfu;ferrkv¨a dk mÙkjnk;h ;kph d¨ ugÈ Bgjk;k tk ldrk & O;ogkjh djkj dh 'kr¨Z dk Òax LFkkfir ugÈ & djkj lekfIr vkns'k vikLrA ¼2018½ 9 ,llhlh 235 rFkk ¼2018½ 11 ,llhlh 778 çÒsfnrA ¼iSjk 29 ls 36½

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 found with the dispensing units.

3. As a routine, Officers of Wight and Measure Department verify the dispensing units of each retail out-let and after verifying the machines they are sealed and stamped and, thereafter, a certificate of verification is issued as per section 24 of Weights and Measures (Enforcement) Act, 1985. The dispensing unit in question was verified by the Inspector of Weights and Measures Department on 10.4.2006 and certificate to that effect was issued which was valid till 9.4.2007. In the aforesaid regard the petitioner was also maintaining a register and every inspection so done by the officers of Weights and Measures Department were noted in the said register.

4. As per the amended provisions contained under rule 24 of the rules a dealer was required to check delivery of every dispensing unit in the morning hours and if anything wrong is found, he was required to close-down the dispensing unit and get it re-verified immediately and the petitioner in compliance to the aforesaid rule had got the delivery duly measured in a five liter measure.

5. On 14.9.2006 an inspection was carried out by the respondent No.2 along with other companions of the “Bharat Petroleum Corporation Ltd”. During the said inspection, it was found that display unit attached along with the dispensing unit was giving erratic display. Respondent No.2 took three deliveries from the dispensing unit and found that the machine was giving short delivery, thus, the said dispensing unit was closed-down and display unit was taken away by the officers.

6. Immediately after the impugned action, the petitioner communicated to the officers of Weights and Measures Department requesting for an opinion regarding the condition of seals of the dispensing units. In response to the communication of the petitioner, the officer of Weights and Measures Department again inspected dispensing units in question and stated that the seals of dispensing units were intact and the delivery of other dispensing units were also found accurate.

7. Since for no reason the dispensing unit of the petitioner was closed-down by the respondent No.2 since 14.9.2006 and as the petitioner was not able to sale the petroleum products and was sustaining huge loss, a writ petition came to be filed on behalf of the petitioner which was registered as W.P. No.5577/2006 and as an interim measure this Court directed respondents to maintain status quo as on the date of the order. The said writ petition came for consideration before this Court on 25.1.2007 and while finally disposing of the petition, this Court was pleased to direct the petitioner to submt reply to the show-cause notice and respondents were directed to decide the same within two weeks. In pursuance to the aforesaid directives, the petitioner submitted

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