INDIAN OIL CORPORATION LTD Vs. SWANTIKA

JUDGEMENT

(1.) The order dated 15.02.2011 of a learned single Judge of this Court passed in W.P. No. 14039/2009 is under challenge in this appeal. Vide agreement dated 24.12.2008 Annexure R-3/7, the Respondent No.1 (hereinafter referred to as the Dealer) was granted dealership of a Company owned retail outlet of petrol, diesel, etc. by the appellant company called the Indian Oil Corporation (hereinafter referred to as the Company). In pursuance of an anonymous complaint dated 27.10.2009 made in the name of some officers of BHEL against the Dealer regarding short delivery/theft of petrol, etc. an inspection was carried out on 12.11.2009 by a team of senior officers of Company. They found some extra fitting of electric switches attached with the pump. The said device when switched on resulted in short supply of fuel to the customers. Annexure P-3 panchnama was prepared by officers of the Company in the initial presence of a representative of the dealer, but the Dealer reached the spot with her husband and son during the inspection.

(2.) Next day i.e. 13.11.2009 the Dealer on her own submitted an explanation (Annexure R 3/3), admitting the existence of undue fittings in operative condition with the pump and assured for fair supply in future and to look into the matter as to how it happened. On 24.11.2009 Company issued a show cause notice Ex. P-4. to the Dealer to explain why dealership be not terminated for aforesaid misconduct and breach of terms. On 14.12.2009 (Annexure P/5), and further on 23 rd December 2009 (Annexure P/7) replies were submitted by Dealer alleging that fittings were apprehended to be the result of a conspiracy of two employees (respondent no.2 and 3) of the Company. Vide order dated 15/01/10 dealership of Dealer was terminated by the Company.

(3.) Clause 7(b) of agreement of dealership holds the dealer solely responsible for any act of his employees or agents etc. found to have been done in contravention of any Acts, Rules, Regulations etc. Clause 34 of agreement prohibits the dealer to make short supply to customers. Clause 42 authorizes the officers of Company and their representatives to enter the premises of an outlet and to make the inspection to check the records or supplies or both, as and when required. Clause 45 of deed authorizes the Company to terminate the dealership in appropriate cases. There is a specific provision in the agreement for the dealer to observe the marketing discipline guidelines (MDG for short) also.