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ALOK ARADHE, ANIL KUMAR JUKANTI
Chairman and M. D. – Appellant
Versus
Ram Lal Agarwal – Respondent
JUDGMENT :
(Anil Kumar Jukanti, J.)
1. This intra court appeal is filed challenging the order, dated 25.03.2014, passed by the learned Single Judge in Writ Petition No. 30227 of 2013.
2. Heard Mr. Deepak Bhattacharjee, learned Senior Counsel for the appellants and Mr. V. Ravinder Rao, learned Senior Counsel for the respondent.
3. Brief facts:
Respondent was a dealer of Indian Oil Corporation (herein after referred to as 'Corporation') for more than 45 years. Initially his father was a proprietor and managed the retail outlet of Burmah Shell. Subsequently, Burmah Shell was taken over by the Corporation. As on the date of writ petition, agreement dated 28.06.2005 was in vogue. Periodical inspections were carried out by officers of the Corporation for accuracy of the delivery and quality, as per the Marketing Discipline Guidelines (herein after referred to as "MDG") of the appellant outlet and that there were no complaints.
3.1. That retail outlet had three dispensing units of Larsen and Toubro and one dispensing unit of MIDCO. On 13.02.2013, officials and staff of Corporation inspected retail outlet at 9.40 A.M. to 10.40 A.M. The inspecting team checked the deliveries from the nozzles of
The mere presence of a double gear in a dispensing unit does not justify the termination of dealership without evidence of intent to manipulate fuel delivery.
Tampering with equipment leading to malpractice and critical irregularities justifies termination of dealership.
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.
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....
The main legal point established in the judgment is that adherence to the Marketing Discipline Guidelines, particularly in cases of critical irregularities, justifies the termination of dealership. A....
The principle of adherence to the principles of natural justice and the justification of termination based on the dealer's involvement in malpractices.
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