- (1.) This Civil Appeal is directed against the impugned judgment and order dated 03.07.2007 passed by the High Court of Judicature at Patna in Second Appeal No. 516 of 1988 whereby it has set aside the impugned judgment and orders therein passed by the courts below on the ground that both the courts below not only committed error of record by misconstruing the facts and evidence on record but also ignored the specific provisions of law as well as the necessary and relevant case laws and also wrongly held that the Title Suit No. 68 of 1978 was barred by the principles of res judicata.
(2.) The facts which are required to appreciate the rival legal contentions urged on behalf of the parties are stated in brief hereunder: The appellant-Indian Oil Corporation Limited (for short "IOCL") in the year 1971 invited applications from eligible persons under the scheme for awarding the distributorship of Indane Gas (LPG) Agencies in the town of Muzaffarpur, Bihar. The said distributorship was reserved for ex- defence personnel, war-widows and dependants. The respondent no.2- Ex- Captain A.S. Siddiqui and respondent no.3-Ex-Captain Jai Narain Prasad Nishad applied for the said distributorship and got it. On 15.10.1971 IOCL offered the said distributorship to respondent nos. 2 and 3 along with a third person provided they agreed to enter into a partnership to run the business of distribution of Indane Gas. This was done with a view to rehabilitate more ex-servicemen in the country. However, the third person refused to form partnership....
(3.) The IOCL through its letter no. Sales/LPG/ERN/3623 dated 21.10.1971 (hereinafter referred to as "letter of allotment") allotted distributorship of Indane Gas to respondent nos.2 and 3 subject to the terms and conditions mentioned therein. Condition no.2 of the said letter is stated hereunder: "Condition no.2: This appointment is subject to the conditions contained in our standard agreement which will be sent to you in due course for your signature and you shall sign and return the same to us." Further condition no.8 of the said letter reads thus: "TERMINATION: Condition no.8: Notwithstanding anything contained herein, the Corporation shall be at liberty to terminate your distributorship without assigning any reason whatsoever by giving you 30 days notice in writing of intention to do so and upon the expiry of the said notice your distributorship shall stand cancelled and terminated without prejudice to the rights of the Corporation in respect of any matter or thing antecedent to such termination.";