PRAKASH FILLING STATION AND ANR. Vs. M/S INDIAN OIL CORPORATION LIMITED AND ORS.
LAWS(ALL)-2011-1-420
HIGH COURT OF ALLAHABAD
Decided on January 19,2011

Prakash Filling Station And Anr. Appellant
VERSUS
M/S Indian Oil Corporation Limited And Ors. Respondents

JUDGEMENT

V.K.Shukla, J. - (1.) Present writ petition has been filed questioning the validity of the orders dated 23.1.2008 passed by the General Manager, M/s Indian Oil Corporation Limited, terminating the Retail Outlet Dealership of the petitioner and order of its affirmance in appeal dated 19.5.2009 passed by the Appellate Authority/Executive Director (Retail Sales), M/s Indian Oil Corporation Limited.
(2.) Brief background of the case is that petitioner has been authorised retail outlet dealer of M/s Indian Oil Corporation Limited. Petitioner has stated that he has been carrying his business since last 36 years and further submitted that he is having four underground storage tanks, out of which 3 tanks are of the capacity of 15,000 litres (15KL) while the other 1 tank is that of 20,000 (20KL) litres capacity. Petitioner has further stated that 15000 litres capacity tank is used for storing MS (Petrol) and HSD (Diesel) whereas one 15 KL and 20 KL capacity tanks of HSD are lying dry. Petitioner has stated that earlier IBP Limited was the company with whom petitioner's dealership agreement was entered into and the land on which retail outlet has been commenced had been lease out to IBP Limited initially on 23.12.1972 and said lease was renewed from time to time as per the terms and conditions of the lease deed. Petitioner has stated that said lease ultimately expired in the year 2002 and same was not at all renewed. Petitioner claims to have given legal notice to M/s Indian Oil Corporation on 28.6.2007 for vacating of the land and removing their constructions and equipments. Petitioner has stated that as a counter blast to said legal notice, on 26.9.2007 respondent-company carried out inspection at the retail outlet and further claims that on the said dates various irregularities have been observed by the team and same have been recorded in the inspection report. The Inspection report dated 26.9.2007 reflects following irregularities, which is being extracted below:- (a) The Totaliser Seal was intact 1 HSD DU (Midco Mach) was found loose and came out with Seal intact. (b) Also the Totaliser MS DU came out with Seal intact. (c) Another DUM HSD Tank could not be checked as the RO staff did not open the DU lock and refuse to open the panel of the DU. The dealer's representative did not allow to check the density. (d) The RO staff did not allow/cooperative to complete the inspection and did not provide the documents/stock register etc. After totaliser came out the staff sanatched the totaliser from us.
(3.) Petitioner claims that based on the said inspector report, notice dated 27.9.2007 was issued suspending the sales and supplies from the outlet. Petitioner has stated that said notice was never received by him. Notice dated 27.9.2007 reflected following irregularities, which are being extracted below:- (a) The Inspection was resisted by your staff deployed at your Petrol pump. (b) Documents, sales records pertaining to Pump and sales were not made available during the inspection. (c) The Seal of the Totaliser was found loose which could be taken out easily. (d) Yourself was not present and when contacted over phone (mobile you did not extend any kind of cooperation.;


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