THE HIGH COURT OF KARNATAKA
LALITHA KANNEGANTI
INDIAN OIL CORPORATION LTD. – Appellant
Versus
M/S SRI SHIVAKUMARA ENTERPRISES – Respondent
CMP 100002/2025
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 25TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI CIVIL MISC PETITION NO.100002 OF 2025 BETWEEN:
INDIAN OIL CORPORATION LTD., MARKETING DIVISION, BELLARY DIVISIONAL OFFICE, NO.6, 1ST FLOOR, INFANTRY ROAD, CANTONMENT, BALLARI-583104, REPRESENTED BY ITS DIVISIONAL RETAIL SALES HEAD.
…PETITIONER (BY SRI. C.V. ANGADI, ADVOCATE)
AND:
M/S. SRI. SHIVAKUMARA ENTERPRISES, INDIAN OIL DEALER, SY. NO.142/3B83C LNO.193, ANAII-DAVANGERE ROAD, DAVANGERE TALUK AND DISTRICT-577001, REPRESENTED BY ITS PROPRIETOR Digitally signed by SRI. NITESH S/O. GNANAMURTHY S.
YASHAVANT NARAYANKAR …RESPONDENT Location: HIGH COURT OF KARNATAKA (NOTICE TO RESPONDENT IS HELD SUFFICIENT (V/O/DATED
07.01.2026))
THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO I) REFER THE DISPUTE, ARISEN BETWEEN THE PETITIONER AND THE RESPONDENT TO THE ARBITRATOR WHO IS ON PANEL, IN VIEW OF THE ARBITRATION CLAUSE CONTAINED AT SL.NO.68 OF THE DEALERSHIP AGREEMENT DATED 12.12.2012 (ANNEXURE-A) IN THE INTEREST OF JUSTICE AND EQUITY. II) TO GRANT SUCH OTHER AND FURTHER RELIEF AS THIS HON’BLE COURT DEEMS FIT, UNDER THE CIRCUMSTANCES OF THE CASE, TO MEET THE ENDS OF JUSTICE.
THIS CIVIL MISCELLANEOUS PETITION HAVING BEEN HEARD AND RESERVED ON 07.01.2026, COMING ON FOR PRONOUNCEMENT OF ORDER THIS DAY, THE COURT PRONOUNCED THE FOLLOWING: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI CAV ORDER The present Civil Miscellaneous Petition is filed seeking to refer the dispute arisen between the petitioner and the respondent to the Arbitrator who is on panel in view of the Arbitration clause contained at Sl.No.68 of the dealership agreement dated 12.12.2012.
2. The petitioner before this Court is the Indian Oil Corporation Ltd. It is the case of the petitioner that the petitioner is a Public Sector Undertaking company registered under the Indian Companies Act, 1913/1956 which is engaged in refining crude oil and storing, distributing and selling of the petroleum products and for this purpose require Tank Trucks for road transportation of bulk petroleum products from their various points storage to customers/other storage points. Pursuant to the conclusion of the dealer selection of the respondent as Retail Outlet Operator, the petitioner and respondent have entered into an agreement of Retail Outlet Dealership Agreement.
3. The petitioner and the respondent entered into “Petrol/HSD Pump Dealer Agreement” on 12.12.2012. Pursuant to the floating of the tender by the petitioner for availing services of the Tank Trucks for transportation of Bulk Petroleum Products, the respondent also participated. The respondent is a carrier and was engaged in a business of operating of Tank Trucks. The Tender proceedings culminated in entering into “Bulk Petroleum Road Transport Agreement” on 29.07.2016. The respondent placed an indent for supply for Motor Spirit to the petitioner to be supplied to the retail outlet operated by the respondent in pursuance of the dealership agreement. The total invoice amount is Rs.19,70,126/-. In this regard, a Tax Invoice has been issued by the petitioner dated 26.09.2021. The respondent was required to pay the said amount immediately to the petitioner but the respondent has not made any payment. The petitioner has made many reminders and requests to the respondent to make the payment. But there was no response from the respondent.
4. It is stated that the Dealership Agreement provides for referring the disputes, in respect of any right, liability act, omission on account of any of the parties hereto arising out of or in relation to the Dealership Agreement. The petitioner placing reliance on Clause No.68 of the Dealership Agreement has issued a Legal Notice on 03.12.2024 invoking the Arbitration Clause for recovery of the amount along with interest at the rate of 18% per annum from the date of invoice till the date of repayment. U
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