KON AUTOMOBILES Vs. INDIAN OIL CORPORATION

JUDGEMENT

(1.) By the present petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, the petitioner seeks to challenge the Award passed by the Arbitral Tribunal dated 2nd May, 2019 (for short the "impugned Award"). By the impugned Award, the claim made by the petitioner seeking a direction to the respondent to withdraw the termination notice dated 21st December, 2017 and to continue the dealership of the retail outlet as per the Dealership Agreement dated 10th February, 2006 and to allow resumption of sales along with consequential reliefs and benefits, was rejected by the Arbitral Tribunal. The petitioner herein was the claimant before the Arbitral Tribunal and the respondent herein was the respondent before the Arbitral Tribunal. For the sake of convenience, the parties shall be referred to as they were arrayed before the Arbitral Tribunal.

(2.) The learned senior Counsel appearing on behalf of the claimant laid a challenge to the impugned Award only on two grounds:-

(3.) To understand the aforesaid two grounds of challenge, it would be necessary to advert to some brief facts and which are undisputed. The respondent had awarded a dealership of a petrol pump to the claimant, effective from 26th November, 2005, for a period of fifteen years. This Dealership Agreement between the parties was executed on 10th February, 2006. Clause 34 of this agreement inter alia stipulated that the claimant was not to make short deliveries to his customers. Under clause 45(a) of the agreement, the respondent had the right to forthwith terminate the contract if the dealer was to commit a breach or default on any of the terms and conditions, covenants and stipulations contained in the agreement.