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2025 Supreme(Online)(Mad) 71112

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mr N. Anand Venkatesh, J
M/s Bharat Petroleum Corporation Ltd – Appellant
Versus
M/s Sree Ramajeyam Service Station – Respondent


Advocates:
For the Appellants/Petitioners: Mr.Krishna Srinivasan Senior Counsel for Mr.S.Ramasubramaniam and Associates
For the Respondents: Mr.N.Muralikumaran for Mr.S.Sathish Rajan

Table of Content
1. termination due to adulterated petroleum products. (Para 2 , 3 , 5)
2. allegations of malafide intent in termination questioned. (Para 12 , 17)
3. incorrect application of legal standards stated. (Para 18 , 24)
4. principles of natural justice addressed in context of arbitration. (Para 30 , 41)

ORDER

This petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for the sake of brevity, hereinafter referred to as 'the Act') challenging the Award dated 12.07.2021, passed by the Sole Arbitrator.

2.The petitioner markets its petroleum products through its dealers. The respondent was one such dealer appointed for dispensing and sale of Motor Spirit (Petroleum), High Speed Diesel and other petroleum products under a Dispensing Pump and Selling License (DPSL) renewed on 20.01.2017 for a period of five years. The respondent has been a dealer of the petitioner for over six decades.

3.On 04.09.2020, the respondent placed an indent for 4000 litres of motor spirit and 8000 litres of high-speed diesel, which were despatched on the same day and unloaded into the underground tanks at the respondent’s retail outlet. The petitioner’s executives drew sample

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