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IN THE HIGH COURT OF MADHYA PRADESH

AT INDORE

BEFORE

HON'BLE SHRI JUSTICE VIVEK RUSIA

&

HON'BLE SHRI JUSTICE AMAR NATH (KESHARWANI)

ON THE 19^th OF APRIL, 2022

WRIT PETITION No. 12708 of 2021

Between:-

INDIAN OIL CORPORATION LTD. REGISTERED

OFFICE- INDIAN OIL BHAWAN 9, ALIYAVAR JUNG

MARG, MUMBAI (MAH.) STATE OFFICE- INDIAN

OIL BHAWAN, 16, ARERA HILLS, JAIL ROAD,

BHOPAL (M.P.) INDORE DIVISIONAL OFFICE AT

INDORE THROUGH-BIPIN KUMAR S/O LATE

MAHENDRA PRASAD AGED ABOUT 43 YEARS,

OCCUPATION-SERVICE RETAIL SALES MANAGER,

ADDRESS- INDIAN OIL BHAWAN, PLOT NO.8,

SCHEME NO.159, KUSHABHAU THAKRE MARG,

M.R.-10, INDORE, M.P.

.....PETITIONER

AND

M/S GAGAN AUTOMOBILES PROPRIETOR

KAMRUDDIN S/O BARKAT ALI MUGAL, AGE 41

YEARS,

OCCUPATION-

BUSINESS,

POST

DHOSWAS, DISTRICT RATLAM R/O HUSSAIN ALI

BUILDING, DAAT KU PUL, DISTRICT RATLAM,

MADHYA PRADESH (MADHYA PRADESH)

.....RESPONDENT

WRIT PETITION No. 22339 of 2021

Between:-

M/S GAGAN AUTOMOBILES THROUGH ITS

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PROPRIETOR MR. KAMARUDDIN MUGHAL S/O

B.A. MUGHAL, AGED ABOUT 41 YEARS,

BUSINESS, ADD: HUSSAIN ALI BUILDING, DAAT

KI PUL (MADHYA PRADESH)

.....PETITIONER

AND

1.

INDIAN OIL CORPORATION LTD. THROUGH

EXECUTIVE DIRECTOR (RETAIL SALES) REGD

OFFICE-INDIAN OIL BHAWAN, 9 ALYAVAR JUNG

MARG, MUMBAI (MAHARASHTRA)

2.

INDIAN OIL CORPORATION LTD. STATE OFFICE

INDIAN OIL BHAWAN 16, ARRERA HILLS, JAIL

ROAD. BHOPAL (MADHYA PRADESH)

3.

INDIAN OIL CORPORATION LTD. THR. RETAIL

SALES MANAGER INDORE DIVISIONAL OFFICE

ADD. INDIAN OIL BHAWAN PLOT NO. 08 SCHEME

NO. 159, KUSHABHAU THAKRE MARG. M.R. 10

INDORE (MADHYA PRADESH)

.....RESPONDENTS

JUSTICE VIVEK RUSIA

passed the

following:-

O R D E R

Shri Yogesh Kumar Mittal learned counsel for IOC.

Shri Pushyamitra Bhargav learned counsel for the Dealer.

****

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 assist