SUMAN LATA Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner has filed the above titled writ petition seeking direction for quashing the advertisement Notice published on 10th September, 2011 for allotment of LPG Gas distributorship pertaining to Tehsil and District Reasi till the rights of the parties are finally determined in Arbitration Petition titled 'M/s Kalka Gas Service Vs. M/s Hindustan Petroleum Corp Ltd and anr.' and the petitioner seeks direction commanding the respondents not to initiate any process of allotment of LPG distributorship, against the termination of License of the petitioner for Tehsil and District Reasi.

(2.) Brief facts arising in this petition are that the petitioner was granted a Domestic and Commercial HP Gas Dealership being sole proprietor of his concerned M/s Kalka Gas Service vide an Agreement dated 29th April, 1987 for a period of ten years. Subsequently, another Agreement was entered/executed inter se the parties in the year 1997 and thereafter in the year 2007. During the currency of the agreement dated 24th December, 2007, a show cause notice dated 7th February, 2008 was issued to the petitioner regarding change in the constitution of the dealership without any prior consent from the Corporation in violation of the dealership agreement, this dealership was terminated on 29th June, 2008. Since in terms of Clause-39 of the Agreement, a dispute in terms of the termination had arisen between the parties and one Vinod Netay, Deputy General Manager, LPG (NWZ) was nominated as a Sole Arbitrator to adjudicate the dispute between the parties. The said Arbitrator entered upon the reference and passed an award on 01st July, 2009 holding the termination of the dealership as legally valid and also directing the claimant had to pay Rs. 6,74,400/- towards the cost of equipments within one month from the date of the award to the respondent, failing the respondent would recover the same at the rate of 8% interest per annum.

(3.) An application for setting aside the award was made under Section 34 of the Arbitration and Conciliation Act which was decided by the learned Principal District Judge, Jammu vide his order dated 17th November, 2011 who dismissed the application of the petitioner. An appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 i.e., CIMA No.569/2011 which is pending adjudication in this Court.