- (1.) An agreement dated March 31, 2004 was executed by and between the Corporation, the petitioner herein, and the opposite parties 1 and 2. In terms thereof, M/s. Maa Durga Service Station (of which the opposite parties 1 and 2 are partners) was granted dealership for dealing in petrol/diesel from a retail outlet situate on Jessore Road, Barasat, 24 Parganas (N). The dealership agreement contained various clauses. While clause no. 65 provided that the court in the city of Kolkata alone shall have jurisdiction to entertain any suit, application or other proceeding in respect of any claim or dispute arising under this agreement , clause no. 66, inter alia, laid down that (a)ny dispute or difference of any nature whatsoever or regarding any right, liability, act, omission or account of any of the parties hereto arising out of or in relation to this agreement shall be referred to the sole arbitration of the Managing Director of the Corporation or of some officer of the corporation who may be nominated by the Managing Director .
(2.) An inspection of the retail outlet conducted by the vigilance wing of the Corporation revealed irregularities committed by the dealer/firm. The petrol and diesel dispensing units were found to have been tampered. Show cause notice was issued by the Corporation, which was challenged before this Court in its writ jurisdiction. The Court refused to interfere. The partners of the firm responded to the show cause notice and were heard. The Corporation, thereafter, by an order dated February 11, 2006 terminated the dealership agreement and directed the partners of the firm to settle the accounts and to hand over the belongings of the Corporation to its sales officer. The order of termination was again subjected to an unsuccessful challenge before the writ Court. The order of the writ Court was carried in appeal, which was also dismissed.
(3.) In terms of the arbitration agreement recorded in clause no. 66 of the dealership agreement, the Corporation referred the dispute to arbitration by appointing an arbitrator. The arbitrator made and published his award dated August 28, 2009.;