M/S GURU KRIPA HP, HPC PETROL PUMP, F Vs. HINDUSTAN PETROLEUM CORPORATION LTD., REPRESENTED BY SENIOR REGIONAL MANAGER, JAIPUR RETAIL REGIONAL OFFICE, TEL BHAWAN, JYOTI NAGAR, JAIPUR

JUDGEMENT

(1.) This application under Sec. 11 (5) and (6) read with Sections 12, 14 and 15 of the Arbitration and Conciliation Act, 1996, has been filed by M/s Guru Kripa HP, HPC Petrol Pump, Jaipur, praying for termination of the sole arbitrator Smt. Rajni Mehta, Deputy General Manager (Sustainability), appointed by the respondent Hindustan Petroleum Corporation Limited.

(2.) Skeleton facts essential for deciding present application are that the application is a partnership firm registered under the Indian Partnership Act. It has approached this court through its one of the partners Mr. Manmohan Kumbhaj. The applicant firm was allotted a retail outlet of the respondent Hindustan Petroleum Corporation Limited (for short, 'the respondent Corporation') on the land owned by the partners of the applicant firm, situated at Plot No.9, Vishwa Karma Industrial Area Jaipur. An agreement was executed between the parties on 08.04.2010. The applicant started operation of the retail outlet on 26.05.2009. Allegation of the applicant is that the officers of the respondent Corporation approached its outlet for taking samples of the High Speed Diesel (for short, 'the HSD'). The samples were taken by them without complying with the mandatory provisions of law and after taking the samples of the HSD in eight aluminium containers (four samples from each of the HSD tank), at the relevant time, they decided to take samples of Motor Spirit (for short, 'the MS') also, but having realized that they did not have any spare container, they took the samples of the MS in the aluminium bottles. Thus out of 8 containers, four of the aluminium bottles were used in taking samples of the HSD, whereas the remaining four bottles were used for taking samples of the MS. The samples were taken in hot haste and cursory manner without taking precautions as required under the law and without following the procedure prescribed by the Ministry of Petroleum and Natural Gasses for this purpose.

(3.) Case of the appellant is that the respondent did not comply with the provisions of the Motor Spirit & High Speed Diesel (Regulation of Supply & Distribution and Prevention of Malpractices) Order, 2005 (for short, 'the MS &HSD Order 2005'), as thereunder the respondent was required to take six samples of MS and three samples of the HSD from each of the storage tank. Reference is made to Clauses 7 and 8 of the MS &HSD Order 2005. The representative of the respondent also collected the truck tanker retention samples of the supplies of dated 31.08.2010 and 01.09.2010 from the retail outlet of the applicant. Five thousand liters of the MS was supplied at the retail outlet of the applicant on 31.08.2010, whereas four thousand liters of MS was supplied on 01.09.2010. The total MS available in the stock of the applicant was 7300 liters. The applicant has only one underground tank for storage of MS, in which all supplies are received and stored for the purpose of sale. The total capacity of underground MS tank at the retail outlet of the applicant is 22000 liters and at the time of taking samples, a quantity of about 6500 liters of MS was available in the tank. No intimation was furnished to the applicant about the test result of the samples. To the utter shock and surprise and dismay of the applicant, the respondent issued show cause notice to the applicant on 03.11.2010, much after the expiry of prescribed time limit, calling upon the applicant to show cause as to why action may not be taken against it under Clauses 26, 42, 55(l) and 55(k) of the Dealership Agreement dated 08.04.2010. Copy of the inspection report dated 04.09.2010 and laboratory report dated 09.09.2010 were also enclosed with the cause-cause notice. It was alleged in the show cause notice that as per the laboratory report, the final boiling point of the petrol sample drawn from the retail outlet on 04.09.2010 was found to be 223ºC against the supply location final boiling point of 184ºC and T.T. Retention final boiling point of 187º C, whereas the maximum value of final boiling point was stated to be 201ºC as per BIS 2786:2008. The show cause notice further alleged that as per the laboratory report the sulpher contents in the petrol samples taken from the retail outlet, were found to be 82 PPM as against the supply location content of 42 PPM and T.T. Retention samples of 55 PPM, which was also outside the permissible limits.