TUPPERWARE INDIA PRIVATE LTD Vs. VEENA WALIA

JUDGEMENT

(1.) The petitioner is engaged in the business of manufacture of tupperware products and the respondent is the distributor thereof. The Distributor Agreement was entered into between the parties on 11th June, 1999 and the relevant clauses are clause 4 and clause 20 reproduced herein : "Clause 4 DURATION

(2.) The aforesaid clause provides two mode of termination. The first is given in clause 20.1 which cites 11 events of the termination of contract but whereas the termination in clause 20.2 is without any cause. It is submitted the contract was initially for 12 months, renewable for further 12 months but after 36 months a fresh agreement was to be entered into between the parties. Admittedly the distribution agreement was renewed twice till 11- 06-2001. However, on 6th July, 2001, the petitioner issued a notice of termination which runs as under :-

(3.) The respondent in reply wrote a letter dated 06.08.2001 as under : In your letter dated July 6, 2001 terminating the agreement, you have served me with one month's notice which expires today. I am not interested in availing one month's extension as that would not serve my any purpose. I have completed my Vanguard month of July on 6th August, 2001. I undertake to execute orders obtained upto this date (i.e. week 31) so that my sales force does not suffer any inconvenience or financial loss. I would feel obliged if my accounts are settled and Goodwill paid at the earliest so that may look around some other ways and means to earn my livelihood."