IBP COMPANY LTD. AND ORS. Vs. T.A. JAYAPRABHU AND ORS.
LAWS(KAR)-2015-1-232
HIGH COURT OF KARNATAKA
Decided on January 22,2015

Ibp Company Ltd. And Ors. Appellant
VERSUS
T.A. Jayaprabhu And Ors. Respondents

JUDGEMENT

K.L.Manjunath, J. - (1.) THE present appeals are filed by M/s. Indian Oil Corporation Ltd., M/s. Hindustan Petroleum Corporation Ltd., & M/s. Bharat Petroleum Corporation Ltd., challenging the legality and the correctness of the order passed by the learned Single Judge dated 13.01.2010 in W.P. No. 37175/1999 and other connected writ petitions.
(2.) THE writ petitioners are granted with the dealership licence by different oil corporations, who are doing business in sale of petroleum products in retail outlets properly known as "petrol filing service station". An agreement is entered into between the dealers and oil corporations. Both the parties are bound by the terms and conditions of the agreement. The writ petitions were filed by the petitioners challenging the amended Marketing Discipline Guidelines framed in August' 2005 by the oil corporations as unconstitutional, illegal, arbitrary and void. Contending that the said guidelines are unconstitutional and illegal and as such, guidelines would not bind the writ petitioners since such guidelines are framed unilaterally and contrary to the terms and conditions of the dealership agreement and based on such guidelines the dealers cannot be made to suffer.
(3.) THE appellants - oil companies, the respondents before the learned Single Judge contended that the Marketing Discipline Guidelines for petrol and diesel outlets/SKO dealership have been framed to ensure the dispensation to correct the quality and quantity of the product sold through their network. In order to ensure complaints of the Marketing Discipline Guidelines, oil companies would immediately register the cases of serious nature like irregularity and essential commodities and to prevent adulteration of sale of petroleum products and in the best interest of consumer, the guidelines have been prepared. While preparing the guidelines, the oil corporations have also taken note of duties and responsibilities of the dealers in supplying the quality and quantity of petroleum products. According to them, these guidelines are inbuilt mechanism of the corporations and for preparation of such guidelines, no statutory provision is required to authorize them to frame and guidelines are more in nature bringing discipline in marketing the petroleum products.;


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