SONIA DAGA Vs. INDIAN OIL CORPORATION

JUDGEMENT

(1.) The order dated 15th July 2008 passed by the Respondent Indian Oil Corporation Ltd. ( 'IOCL?) terminating the retail outlet dealership of M/s Maheshwari Service Station is under challenge in this petition.

(2.) On 15th March 1999 the IOCL entered into a dealership agreement with Shri Renu Daga who was the sole proprietor of M/s Maheshwari Service Station. Shri Daga died on 4th October 2003 leaving behind his mother Smt. Vipin Lata Daga (Petitioner No. 2), his wife Sonia Daga (Petitioner No. 1) and son Master Divit Daga. After the death of Shri Daga the proprietory concern, M/s Maheshwari Service Station, was reconstituted as a partnership with Petitioners 1 and 2 as partners. The prior approval to the running of the retail outlet by the firm was granted by IOCL by a letter dated 12th January 2004. A partnership deed was executed on 19th January 2004 and was registered on 23rd January 2004. The Petitioner No. 1 holds 60% of the shares and Petitioner No. 2 holds the balance 40% in the profit and loss of the said firm. Consequent upon the registration of the partnership deed a fresh agreement dated 21st July 2004 was entered into between the IOCL and the partnership firm.

(3.) Thereafter certain disputes arose between Petitioner No. 1 and Petitioner No. 2 as a result of which Smt. Sonia Daga (Petitioner No. 1) filed a complaint with the IOCL. On 20th December 2004 the IOCL wrote to the Petitioners asking them to settle their inter se disputes amicably. In response to the said letter, the Petitioner No. 2 on 23rd December 2004 wrote to the IOCL stating that the dispute was on account of some personal differences and did not relate to the partnership. She requested that the further proceedings by the IOCL should be dropped. On 24th December 2004 the IOCL wrote to the Petitioners stating that the settlement of the disputes should be indicated by a joint letter of both parties.