AGRAWAL AGENCIES Vs. GODREJ-GE APPLIANCES LTD

JUDGEMENT

(1.) The applicant/complainant has moved this Commission raising the grievance that he was appointed dealer of the respondent company by agreement dated 3rd September, 1996 and the appointment has been abruptly terminated by not renewing the dealership agreement. Clause-2 of the agreement may be referred to as below : "2 (a) This agreement shall be deemed to come into force from 3.9.1996 and shall continue to remain in force till 31.3.1997 on which date, it shall automatically come to an end. The agreement may however be renewed for a period of one year by mutual consent of the parties hereto. (b) This agreement or any renewal thereof shall also be liable to be terminated earlier before the expiry thereof under any of the applicable clauses of this agreement. "

(2.) The other relevant clause which relates to termination is Clause-22 which may also be reproduced as under : "22. Either party shall have the right to terminate this agreement (without assigning any reason and without incurring any obligation or liability in that behalf) by giving 3 months' notice in writing to the other. Such termination, however, shall not affect any rights and obligations of either party which shall have arisen prior to such termination. "

(3.) The respondent did not renew the agreement and issued a communication dated July 5, 1999, which reads as follows : "m/s. Agrawal Agencies lic Building sahadatpur mau - 275 101 (U. P.)Dear Sirs, in light of your poor performance during the last few years, we are not renewing your dealership agreement for this financial year. For Godrej-GE Appliances Ltd. Sd/-Ajay Tandon vice President - Sales"