PRASANNA Vs. UNION OF INDIA

JUDGEMENT

(1.) In view of notice for final disposal issued earlier the learned counsel for the parties have been heard by issuing Rule and making the same returnable forthwith.

(2.) The petitioner who has been appointed as distributor by the Indian Oil Corporation-respondent nos. 3 and 4 has challenged the order dtd. 15/1/2020 terminating the distributorship agency granted to him as well as the earlier orders dtd. 20/9/2019 suspending the distributorship and 18/12/2019 seeking to recover an amount of Rs.7,52,950.00 from the petitioner.

(3.) The facts relevant for adjudicating the challenges raised in the writ petition are that the petitioner has suffered 85% disability and holds a disability certificate issued by the Civil Surgeon. The petitioner was awarded Indane distributorship at Gondia under the physical handicapped category on 22/5/2012. Distributorship Agreement was signed on 23/5/2012 and the outlet was commissioned on 29/5/2012. According to the petitioner, he was conducting the distributorship business in accordance with the terms and conditions imposed by the respondent nos. 3 and 4 in the distributorship agreement. The said respondents however acting upon two complaints proceeded to issue show cause notice on 20/9/2019 and at the same time suspending the said Distributorship Agreement. It was stated that there was contravention of Clauses 21, 23(b) and (c-i) of Distributorship Agreement. The petitioner replied to the aforesaid show cause notice on 22/9/2019 denying the allegations made therein. Thereafter yet another show cause notice was issued to the petitioner on 15/11/2019 alleging violation of the very same clauses that were mentioned in the earlier notice. The petitioner replied to that show cause notice on 7/12/2019. The respondent nos. 3 and 4 by the order dtd. 18/12/2019 directed the petitioner to pay an amount of Rs.7,52,950.00 towards shortage of equipment. On 15/1/2020 the respondent nos. 3 and 4 proceeded to terminate the Distributorship Agreement. Being aggrieved, the petitioner has challenged the aforesaid action of termination of the distributorship agency.