MAHENDRA SALES SERVICE Vs. ESSAR OIL LIMITED

JUDGEMENT

(1.) By a letter of appointment dated 30.5.2005 respondent Oil Company confirmed appointment of one Shri Mahendra Bagrecha as its franchisee for a retail outlet at Khasra No.36/2, village Karmawas, Tehsil Siwana, District Barmer. The letter of appointment outlines broad terms and conditions applicable for franchise including procedure for resolution of the disputes between the parties through arbitration.

(2.) In continuation of the letter of appointment dated 30.5.2005 a franchise agreement was signed by Shri Mahendra Bagrecha and representative of the respondent oil company on 21.10.2005. Pertinent to note here that the franchise agreement was signed by Shri Mahendra Bagrecha in capacity of the sole proprietor of firm M/s Mahendra Sales Service.

(3.) After operating the retail outlet Shri Mahendra Bagrecha was not desirous to continue with the franchise of the retail outlet, hence an expression of interest for replacement of franchisee was submitted by Smt. Nanita Jain. By communication dated 8.5.2009, she also requested the respondent oil company to admit her as new partner in the franchisee firm M/s Mahendra Sales Service. She also submitted a declaration-cum-indemnity on 8.5.2009 itself. On the same day Shri Mahendra Bagrecha also made a request to the respondent oil company to approve reconstitution of the proprietorship firm M/s Mahendra Sales Service. He too submitted a declaration-cum-indemnity.