Shri Yogesh Kumar Mittal learned counsel for IOC.

Shri Pushyamitra Bhargav learned counsel for the Dealer.

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By this common order, both the writ petitions are being

decided as both arose out order dated 29.11.2018 passed by Dispute

Resolution Panel. For the sake of convenience, facts of Writ

Petition No.12708/2021 filed by Indian Oil Corporation (IOC) are

being taken for deciding the case.

The petitioner/ Indian Oil Corporation Ltd. (hereinafter

referred to as ''IOC'') has filed the present petition being aggrieved

by the order dated 29.11.2018 passed by Dispute Resolution Penal

(in short “DRP'') in case No. DRP/IOCL/RET/0003/2018 whereby

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the order of termination of dealership dated 12.01.2015 has been set

aside.

[2]

The petitioner is a public sector undertaking of the Central

Government engaged in the production & distribution of petrol,

diesel & other petroleum products through its retail outlet

dealership. The IOC has framed Marketing Discipline Guidelines

initially in the year 1981-82 and thereafter revised/amended from

time to time. All the retail outlets/ dealers selected and appointed by

the IOC are bound to follow the Marketing Discipline Guidelines

(hereinafter referred to as ''MDG'') in order to maintain the

discipline and ethics in the sale of oil products. The respondent was

given a license to own and run a retail outlet established at location

Dhoswas, District Ratlam in the M/s Gagan Automobile and the

agreement was executed on 28.11.2008.

[3] On 26.11.2013, two authorized officers of the Department of

Anti Adulteration Cell, IOC (in short ''AAC'') visited the aforesaid

retail outlet for conducting a surprise inspection. The Manager and

other employees were found there at the time of inspection, after

carrying out certain inspections at various places of the outlet. They

checked all the three nozzles (1 of motor spirit (MS) 2 of High-

Speed Diesel (HSD)) and all three nozzles were found to be within

the permissible limit. ACC team has suspected an electronic chip in

the pulsar cable at the motherboard end in MS DU of L&T made Z

line Model;GS74624 Sr. No. GW 2877. In order to do the intensive

checking of Dispensing Unit, the Field Officer of IOC was called

for assistance but the staff of the dealer locked the door of the sales

building to restrain them to check the Dispensing Unit. However

they were permitted to inspect other documents in the office but

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because of the continuous destruction and interference, the AAC

decided to suspend the further inspection. According to the

petitioner, the attendant and Manager of the retail outlet surrounded

the team members and forcefully pushed and abused them by using

foul and disrespectful language. Due to this, the officers could not

continue the sampling and investigation at the retail outlet and left

the location and came back to the hotel. A fact-finding letter dated

27.11.2013 was written to the higher authority. The IOC has

decided to issue a show-cause notice to the dealer and accordingly

same was issued, the respondent submitted a reply dated 06.12.2013

denying all such incidents. Being dissatisfied with the reply a show-

cause notice for termination was issued to the respondent. The

respondent again submitted a reply to the show-cause notice and

vide order dated 12.01.2014, the IOC has terminated the dealership

of the respondent under clauses 8.5.1 & 8.5.4 of MDG 2013 and

clauses 42, 43 & 45 (K) and (o) of the Dealership Agreement.

[4]

Being aggrieved by the aforesaid termination, the respondent

filed an appeal before the Executive Director (Retail Sales) of the

IOC. During the pendency of the aforesaid appeal, the amendment

of MDG 2012 took place and the appeal was transferred to Dispute

Resolution Panel (DRP) as being an appellate authority.

[5]

Learned DRP has entertained the appeal and after hearing the

parties, recorded the finding that the irregularity committed by the

respondent is 'Major Irregularity' and does not come under the

clause of '