Case Law Details
1. Invoking the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India, the petitioner herein calls in question the order dated 8-4-2002 (Annexure P-2) by which his dealership agreement has been terminated and he also seeks to challenge the inspection report dated 8-1-2002 (Annexure P-1).
2. Essential facts requisite to judge the correctness of the plea raised at the Bar are as under: –
2.1) The respondent Indian Oil Corporation Limited granted dealership to the petitioner to run a retail outlet at Dharamjaigarh on 5-4-1982 against the open category and thereafter, license was issued under the provisions of the Madhya Pradesh Motor Spirit and High Speed Diesel Oil (Licensing and Control) Order, 1980. On 8-1-2002, a vigilance inspection was made to the outlet of the petitioner and samples of Motor Spirit Petrol (MSP) and High Speed Diesel (HSD) were taken and density test was conducted at the outlet itself and it was found that there is variation in density limits and sales and supplies were suspended with immediate effect. Copy of the inspection report dated 8-1-2002 was supplied to the petitioner. The petitioner filed C.S.No. 4-A/2002 before the Court of Civil Judge Class- I, Raigarh for permanent injunction claiming relief that the defendants be restrained from prohibiting the petitioner herein from running the petrol pump and proceeding for dealership termination be also set-aside and the petitioner be allowed to supply the petroleum products continuously. In the said civil suit an application under Order 39 Rules 1 and 2 of the CPC for temporary injunction was also filed, reply was filed by the present respondents and ultimately, the trial Court by its order dated 15- 3-2002 rejected the application for temporary injunction in which it has also been observed that the copy of test report dated 16-1- 2002 was filed by the defendants. Thereafter, ultimately, the suit was dismissed as withdrawn on 21-5-2002. In the meanwhile, the sample was sent for testing in Nishatpura Laboratory and Research Octane Number (RON) test was conducted in which it was found that the sample of Motor Spirit (MS) collected from the petitioner’s outlet does not meet the specification with RON test. The petitioner was served with show cause notice dated 23-1- 2002 stating inter alia that MS sample failed with RON test and stock variation was also found which was beyond the permissible limits, Daily Sales Register and Density Register were found incomplete during inspection by the Field Officer. The show cause notice was replied by the petitioner on 25-1-2002 denying
the charges levelled against him and thereafter, by the impugned order dated 8-4-2002, the order of termination has been passed terminating the dealership of the petitioner. The petitioner had filed this writ petition on 18-4-2002 supported by the affidavit of Shri Manoj Agarwal, Manager of the petitioner Company, stating inter alia that no copy of dealership agreement was ever furnished by respondent No. 1 to the petitioner Company and the
petitioner Company has been carrying on the business of selling petroleum products through its retail outlet.
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