LAWS(DLH)-2003-7-109

MITTAL SERVICES Vs. ESCOTEL MOBILE COMMUNICATION LIMITED

Decided On July 08, 2003
MITTAL SERVICES Appellant
V/S
ESCOTEL MOBILE COMMUNICATION LIMITED Respondents

JUDGEMENT

(1.) By instant application, plaintiff seeks issue of a restraint order against the defendant injuncting it from appointing another franchisee for the territory of District Kaithal in its place.

(2.) The plaintiff is a registered partnership firm. It runs its business at District Kaithal, Haryana. The defendant is an incorporated Company with its registered office at A-36, Mohan Cooperative Industrial Estate, New Delhi. It is engaged in the business of providing/operating mobile cellure telephone services in the telecom circles of Haryana, West Uttar Pradesh and Kerala.

(3.) Plaint version unfolds that the defendant in order to reach out to a wider segment of public in the State of Haryana entered into a Franchisee Agreement dated 25.06.1999 with the plaintiff and appointed it as its sole franchisee for the District of Kaithal with effect from 25th of June, 1999. The agreement was intended to be for a period of five years. However, in case of either party intending to terminate the same, 90 days' notice, in writing, was required to be served on the other party. On being appointed as franchisee under the said agreement, the plaintiff endeavoured its utmost to capture the market of District Kaithal. However, for reasons not known to it, the defendant, helped by its marketing associates, allegedly started indulging in obnoxious and anti business activities. The plaintiff learnt about the same on receiving complaints from various customers to the effect that certain employees or representatives of the defendant were approaching them directly and demanding money on the pretext of providing Discount Cards. The plaintiff by its letter dated 3.1.2001 informed the defendant Company of the aforesaid practices and requested them to take corrective measures. This apart, the defendant Company was also informed of the same in the course of personal meetings with the defendant Company and the defendant Company had all through been assuring it to take corrective steps and even returned money to some of the customers-complainants.