M/S Rajpura Service Station v. Bharat Petroleum Corp Ltd and Ors

o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-1-o

INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAo AToCHANDIGARHo o o o o o o o o o o CWP-26964-2017o(O&M)o o o o o o o o Reservedoon:o04.08.2023o o o o o o o o DateoofoDecision:o09.08.2023o o M/soRajpuraoServiceoStationoo o o o ,Petitionero Versuso BharatoPetroleumoCorporationoLimitedoandoOtherso o ,Respondentso o Ando CWP-7708-2017o(O&M)o M/soRajpuraoServiceoStationoo o o o ,Petitionero Versuso BharatoPetroleumoCorporationoLimitedoandoOtherso o ,Respondentso o CORAM:oooHON'BLEoMR.oJUSTICEoJAGMOHANoBANSALo o Present:-oo Mr.oKanwaljitoSingh,oSenioroAdvocateowithoo o o Ms.oNehaoAnandoMahajan,oAdvocate,o o o Ms.oPromilaoNain,oAdvocateoandoo Ms.oHarveenoMehta,oAdvocateoforotheopetitionero Mr.oRamanoSharma,oAdvocateoforotheorespondentsoo ***o JAGMOHANoBANSAL,oJ.o(Oral)o

1.k o Throughothisocommonoorder,obothotheocaptionedopetitionsoareo disposedoofoasotheosameoareointerconnected.oForotheosakeoofobrevityoando convenience,ofactsoareoborrowedofromoCWP-26964-2017.o o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-2-o

o

2.k o Theo petitionero througho instanto petitiono undero Articleso 226/227oofotheoConstitutionoofoIndiaoisoseekingosettingoasideoofoordero datedo 31.03.2017o (Annexureo P-24)o wherebyo respondento No.2o haso terminatedo dealershipo agreemento executedo betweeno petitionero ando respondento No.1-Bharato Petroleumo Corporationo Limitedo (foro shortotheo 'corporation').o o

3.k o Theo briefo factso ofo theo caseo whicho areo necessaryo foro theo adjudicationoofotheopresentopetitionoareothatotheopetitioner,oaopartnershipo firm,o ono 28.10.1989o waso allottedo petrolo pump.o Ono 28.04.2014,o ano inspectiono waso conductedo byo theo officialso ofo theo corporationo ando noo irregularityo ino theo Dispensingo Unitso (foro shorto 'DU')o waso found.o Ono

17.06.2014,o ao teamo fromo Qualityo Controlo Cello ofo theo corporationo inspectedo premiseso ofo theo petitioner.o Ano inspectiono reporto datedo

17.06.2014owasoprepared.oInotheosaidoreport,oitowasonoticedothatothereoiso additionalofittingoinooneoofotheoDUs.oInorespectoofoDUoMakeoMIDCO,oito wasofoundothatothereoisoshortodeliveryoinotheodispensationoofoeveryo5olitreo oil.oTheoteamoobservedothatothereoisoanoelectronicotampering,oaccordinglyo saleoquaoMIDCOoMakeoDUowasostopped.oItowasoalsooobservedothatoino caseoofoanotheroDU,othereoisoexcessodelivery.oSaleoofotheosaidoDUowaso alsoostoppedowithointentotoore-calibrate.ooInocaseoofoMIDCOoMakeoDU,oato theotimeoofostartingoofoinspection,otheoinspectingoteamofoundothatothereoiso saleo ofo 0.71o litre.o Theo inspectingo team,o threeo consecutiveo times,o tooko MOHIT KUMARdeliveryoofo5olitreooiloandoitowasofoundothatothereowasoshortageoofo230,o o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-3-o

180,o210omloinotheofirst,osecondoandothirdodispensation,orespectively.oTheo respondent-corporationoissuedoshowocauseodatedo22.08.2014o(Annexureo P-7)ocallingouponotheopetitionerotooshowocauseoasotoowhyotheocontracto shouldonotobeoterminated.oTheopetitionerofiledoitsoreplyodatedo10.09.2014.o Asoperorespondent-corporation,othereowasonoorequirementotoogetoreportoofo originalo equipmento manufacturero ino caseo ofo tamperingo ofo equipment,o however,o Governmento ofo Indiao video Instructiono datedo 25.03.2015o clarifiedothatoinocaseoofosoftwareotampering,otheotamperingoneedsotoobeo proved.oInoviewoofoaforesaidoletteroofoGovernmentoofoIndia,oallotheooilo companieso decidedo too geto testo reporto fromo originalo equipmento manufactureroinocaseoofotamperingoofoequipment.oInocomplianceoofofresho instructions,o jointo inspectiono waso conductedo ono 21.09.2015o ando instrumentsowereotakenoinotheocustodyoandothereafter,osentoforotestingotoo OEM.oTheosamplesocameotoobeotestedoinotheopresenceooforepresentativeoofo theo petitionero aso wello aso corporation.o Theo OEMo ino itso reporto datedo

01.03.2016o formedo ano opiniono thato pulsaro assemblyo waso ino tamperedo conditionoandopulsarowasonotoasoperoMIDCOoStandards.oHence,ofurthero testsowereonotocarriedooutoonotheoreceivedoassembly.oOnotheobasisoofotesto report,ofreshonoticeocameotoobeoissuedoandopetitionerofiledoitsoreplyotootheo saido notice.o Prioro too passingo ofo order,o theo petitionero approachedo thiso CourtobyowayoofofilingoCWPoNo.o7708oofo2017.oThisoCourtovideointerimo orderodatedo18.04.2017ograntedointerimoprotectionotootheopetitioner.oTheo respondent-corporationo passedo ordero ofo terminationo datedo 31.03.2017,o however,oitocameotoobeocommunicatedoafteropassingoofointerimoorderobyo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-4-o

thisoCourt.oItoisoaptotoonoticeohereorespondent-corporationoono10.04.2017o re-advertisedotheodealershipoandointerviewsocameotoobeoconducted.o

4.k o Mr.oKanwaljitoSingh,oSenioroAdvocateosubmitsothatoactionoofo respondent-corporationo waso totallyo arbitraryo ando unreasonable.o Theo petitionerowasoallottedopetrolopumpoinotheoyearo1989oandoduringo25oyearso ofo career,o noo discrepancyo waso found.o Theo respondent-corporationo inspectedopremisesoofotheopetitioneroono25.04.2014oi.e.ojustotwoomonthso priorotootheodateoofoallegedoincidentoandonoodiscrepancyowasofound.oTheo respondent-corporationo ino inspectiono reporto foundo thato thereo iso excesso deliveryoinocaseoofoHSD.oThereowasonoosenseotoomakeoalterationoresultingo intooexcessodelivery.oTheorespondent-corporationohasonoticedothatothereo wasoelectronicotampering,ohowever,otestoreportsoareonotodisclosingothato thereowasoelectronicotampering.oTheosealoaffixedobyoofficialsoofoLegalo MetrologyoDepartmentowasofoundointact,othus,othereowasonooquestionoofo alterationo ofo pulsaro oro anyo othero parto ofo theo DU.o Theo respondent-corporationo attemptedo too re-alloto petrolo pumpo prioro too passingo ando communicationo ofo ordero ofo terminationo whicho showso theiro acto ando conduct.oAsoperoreportoofoGilbarcooVeeder-Root,onootamperingowasofoundo inotheoDU.oTheocaseoofotheopetitioneroisocoveredobyominoroirregularitieso contemplatedo ino theo Marketingo Disciplineo Guidelineso whereaso punishmentohasobeenoawardedoconsideringoitoasoaocriticaloirregularity.o oo oo Learnedoseniorocounseloinosupportoofohisocontentionoreliedo upono o judgmentso ofo thiso Courto ino Bharato Petroleumo Corporationo LimitedoandoAnotheroVersusoPaloFillingoStationoandoOthers,o2015oSCCo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-5-o

OnLineoP&Ho7906;ooAllahabadoHighoCourtoinoM/soChaudharyoFillingo Point,oKazipurothroughoitsoProprietoroandoAnotheroVersusoStateoofoU.P.o throughoPrincipaloSecretaryoFoodoandoCiviloSuppliesoandoOthers;o2019o SCCo OnLineo Allo 3620;o Telanganao Higho Courto ino Theo Hindustano Petroleumo Corporationo Limitedo Versuso M/s.o P.o Laxmikanto Raooando Sons,oWritoAppealoNo.318oofo2011oandoAndhraoPradeshoHighoCourtoino Ramo Lalo Agarwalo Versuso Indiano Oilo Corporationo Limited;o Writo PetitionoNo.30227oofo2013.o

5.k o Pero contra,o Mr.o Ramano Sharma,o learnedo counselo foro theo respondentsointeroaliaocontendsothatothereowereo8oDUsoatotheopetrolopump,o however,o 98%o supplyo waso madeo fromo MIDCOo Makeo DU.o Theo respondent-corporationo iso noto concernedo witho othero DUs,o however,o actiono haso beeno takeno ono theo basiso ofo MIDCOo whicho waso meanto too delivero MS.o Theo testo reporto waso noto soughto ato initialo stageo becauseo guidelineso quao sampleo ando testingo cameo intoo forceo aftero conductingo inspection.oDuringotheocourseoofoinspection,oshortodeliveryowasofoundo whichowasoonoaccountoofoelectronicotampering.oThreeotimesodispensationo waso madeo ando everyo timeo shorto deliveryo waso found.o Theo unito waso switchedooffoandothereafter,orestarted.oOnorestart,onooshortodeliveryowaso foundo whicho indicatedo thato thereo waso tamperingo ono theo parto ofo theo petitioner.oTheoreportoofoOEMoi.e.oMIDCOoisoquiteoclearoandoasoperosaido report,othereowasotamperingoinotheopulsar,othus,ocaseoofopetitionerosquarelyo fallso undero criticalo irregularityo warrantingoterminationoofotheo contract.o Mereofactothatosealowasofoundointactoisonoogroundotooformoanoopinionothato 2023.08.09 18:01thatothereowasonootampering.oItoisoanoelectronicoeraoandothereoareosoomanyo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-6-o

wayso ando meanso too tampero electronico instruments.o Ito waso foro theo petitionerotooproveothatothereowasonootampering.o oo oo Theo respondent-corporationo reliedo upono judgmento ofo AllahabadoHighoCourtoinoSavitrioDevioandoOthersoVersusoUnionoofoIndiao andoOthers;oWrit-CoNo.29859oofo2017;oGujaratoHighoCourtoinoNatvarlalo &o Sonso througho Partnero Versuso Bharato Petroleumo Corporationo Limited;oSpecialoCiviloApplicationoNo.2412oofo2011oandojudgmentoofo Hon'bleo Supremeo Courto ino Indiano Oilo Corporationo Limitedo Versuso AmritsaroGasoServiceoandoOtherso;o1991o(1)oSCCo533.o

6.k o Iohaveoheardotheoargumentsoofolearnedoseniorocounseloforotheo petitioneroandolearnedocounseloforotheorespondentoandoperusedotheorecordo withotheiroableoassistance.o

7.k o Ao twoo Judgeo Bencho ofo Hon'bleo Supremeo Courto ino M.P.o PoweroManagementoCo.oLtd.ov.oSkyoPoweroSoutheastoSolaroIndiao(P)o Ltd.,o (2023)o 2o SCCo 703o haso advertedo witho ambito ando scopeo ofo interferenceo ino contractualo matters.o Objectiono ofo theo respondento witho respectotoomaintainabilityoofowritoinocontractualomattersostandoansweredo byoHon'bleoCourt.oTheoHon'bleoCourtohasoheldo:o "82.o o Weomayocullooutoouroconclusionsoinoregardo tootheopoints,owhichoweohaveoframed:o

82.1.oo Ito is,o undoubtedly,o trueo thato theo writo jurisdictionoisoaopublicolaworemedy.oAomatter,owhicho liesoentirelyowithinoaoprivateorealmoofoaffairsoofopublico body,omayonotolendoitselfoforobeingodealtowithounderotheo MOHIT KUMAR writojurisdictionoofotheoCourt.o o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-7-o

82.2.oo Theo principleo laido downo ino Bareillyo Developmento Authorityo [Bareillyo Developmento Authorityov.oAjaioPaloSingh,o(1989)o2oSCCo116]othatoino theo caseo ofo ao non-statutoryo contracto theo rightso areo governedo onlyo byo theo termso ofo theo contracto ando theo decisions,o whicho areo purportedo too beo followed,o includingo Radhakrishnao Agarwalo [Radhakrishnao Agarwalov.oStateoofoBihar,o(1977)o3oSCCo457],omayonoto continueotooholdogood,oinotheolightoofowhatohasobeeno laidodownoinoABLo[ABLoInternationaloLtd.ov.oExporto CreditoGuaranteeoCorpn.oofoIndiaoLtd.,o(2004)o3oSCCo 553]oandoasofollowedoinotheorecentojudgmentoinoSudhiro KumaroSingho[StateoofoU.P.ov.oSudhiroKumaroSingh,o

(2021)o19oSCCo706o:o2020oSCCoOnLineoSCo847].o

82.3.oo Theomereofactothatoreliefoisosoughtounderoao contracto whicho iso noto statutory,o willo noto entitleo theo respondentoStateoinoaocaseobyoitselfotoowardooffoscrutinyo ofo itso actiono oro inactiono undero theo contract,o ifo theo complainingo partyo iso ableo too establisho thato theo action/inactionois,operose,oarbitrary.o

82.4.otoo82.6o oooXXXXo oooooooXXXXo oooooooooooXXXXo

82.7.ooooooooooooTheoexistenceoofoanoalternateoremedy,ois,o undoubtedly,oaomatterotoobeoborneoinomindoinodecliningo reliefoinoaowritopetitionoinoaocontractualomatter.oAgain,o theoquestionoasotoowhetherotheowritopetitioneromustobeo toldooffotheogates,owouldodependouponotheonatureoofotheo claimoandoreliefosoughtobyotheopetitioner,otheoquestions,o whicho wouldo haveo too beo decided,o and,o mosto importantly,owhetherothereoareodisputedoquestionsoofo fact,o resolutiono ofo whicho iso necessary,o aso ano indispensableopreludeotootheograntoofotheoreliefosought.o Undoubtedly,owhileothereoisonooprohibition,oinotheowrito o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-8-o

courto eveno decidingo disputedo questionso ofo fact,o particularlyowhenotheodisputeosurroundsodemystifyingo ofodocumentsoonly,otheoCourtomayorelegateotheopartyotoo theoremedyobyowayoofoaocivilosuit.o

82.8o o oooooooXXXXo ooooooooooooooooXXXXo oooooooooooXXXXo

82.9.ooooooooTheoneedotoodealowithodisputedoquestionsoofo fact,o cannoto beo madeo ao smokescreeno too guillotineo ao genuineoclaimoraisedoinoaowritopetition,owhenoactuallyo theo resolutiono ofo ao disputedo questiono ofo facto iso unnecessaryotoograntoreliefotooaowritoapplicant.o

82.10.oo ooooXXXXo ooooooo oooXXXXo oooooooo ooXXXXo

82.11.k Terminationoofocontractocanoagainoariseoino aowideovarietyoofosituations.oIfoforoinstance,oaocontracto iso terminated,o byo ao person,o whoo iso demonstrated,o withoutoanyoneedoforoanyoargument,otoobeotheoperson,o whooisocompletelyounauthorisedotoocancelotheocontract,o thereomayonotobeoanyonecessityotoodriveotheopartyotootheo unnecessaryoordealoofoaoprolixoandoavoidableoroundoofo litigation.oTheointerventionobyotheoHighoCourt,oinosucho aocase,owhereothereoisonoodisputeotoobeoresolved,owouldo alsoo beo conduciveo ino publico interest,o aparto fromo ensuringotheofundamentalorightoofotheopetitioneroundero Articleo14oofotheoConstitutionoofoIndia.oWhenoitocomeso tooaochallengeotootheoterminationoofoaocontractobyotheo State,owhichoisoaonon-statutoryobody,owhichoisoactingoino purportedoexerciseoofotheopowers/rightsounderosuchoao contract,oitowouldobeooverosimplifyingoaocomplexoissueo toolayodownoanyoinflexibleoruleoinofavouroofotheoCourto turningo awayo theo petitionero too alternateo fora.o Ordinarily,otheocasesoofoterminationoofocontractobyotheo State,o actingo withino itso contractualo domain,o mayo noto lendoitselfoforoappropriateoredressobyotheowritocourt.oMOHIT KUMAR o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-9-o

Thisois,oundoubtedly,osooifotheoCourtoisoduty-boundotoo arriveoatofindings,owhichoinvolveountyingoknots,owhicho areo presentedo byo disputedo questionso ofo facts.o Undoubtedly,oinoviewoofoABLo[ABLoInternationaloLtd.o v.o Exporto Credito Guaranteeo Corpn.o ofo Indiao Ltd.,o

(2004)o3oSCCo553]o,oiforesolvingotheodispute,oinoaocaseo oforepudiationoofoaocontract,oinvolvesoonlyoappreciatingo theotrueoscopeoofodocumentaryomaterialoinotheolightoofo pleadings,o theo Courto mayo stillo granto reliefo too ano applicant.o Weo musto entero ao caveat.o Theo Courtso areo todayoreelingounderotheoweightoofoaodocketoexplosion,o whichoisotrulyoalarming.oIfoaocaseoinvolvesoaolargeobodyo ofo documentso ando theo Courto iso calledo upono too entero upono findingso ofo factso ando involveso merelyo theo constructiono ofo theo document,o ito mayo noto beo ano unsoundo discretiono too relegateo theo partyo too theo alternateoremedy.oThisoisonototoodepriveotheoCourtoofoitso constitutionalo powero aso laido downo ino ABLo [ABLo InternationaloLtd.ov.oExportoCreditoGuaranteeoCorpn.o ofoIndiaoLtd.,o(2004)o3oSCCo553].oItoallodependsoupono theofactsoofoeachocaseoasotoowhether,ohavingoregardotoo theoscopeoofotheodisputeotoobeoresolved,owhetherotheo Courtowillostilloentertainotheopetition"o oo o Fromo theo conspectumo ofo aboveo citedo judgment,o ito cano beo easilyogleanedothatothereoisonoobarotooentertainowritopetitionoinocontractualo matterothoughocontractoisoaonon-statutoryocontract.o

8.k oo Theopetitionerohasocitedovariousojudgmentsowhichoareonoticedo asobelow:-o

8.1o o AoDivisionoBenchoofothisoCourtoinoPaloFillingoStationo(supra)o hasoheldothatotheodecisionotooterminateodealershipowasoharshoandohighlyoMOHIT KUMAR o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-10-o

disproportionateotootheodetectedoirregularity.oTheopetitionerothereinowaso neveropenalizedoino26oyears,onoofaultowasofoundoinodieselodispensingounit,o nooadulteration,oshortomeasuringoorovariationoofostockowasofound.oThus,o orderoofoterminationowasosetoaside.oo

8.2o oo AndhraoPradeshoHighoCourtoinoRamoLaloAgarwalo(supra)ohaso heldothatowritopetitionoisomaintainableoagainstoterminationoofodealershipo agreemento wheno noo seriouso disputedo questionso ofo facto requiringo considerationoareoinvolved.oTheopetitionerothereinowasonotopermittedotoo cross-examineoofficialsoofotheocorporation,ohowever,olotoofoweightotootheo versiono ofo thoseo officerso waso assigned.o Theo Courto foundo thato theo competentoauthorityowasosupposedotooconsideropastoperformanceoofotheo dealerowhileoassessingonatureoofodisciplinaryoactionoandopermitocross-examinationo ofo theo officerso ofo theo corporation.o Theo Courto seto asideo terminationoorder.o

8.3o o AllahabadoHighoCourtoinoChaudharyoFillingo(supra)ohasoheldo thatoremedyoofoarbitrationoinoviewoofojudgmentoofoHon'bleoApexoCourtoino IOCLo Versuso Amritsaro Gaso Service;o 1991o SCCo (1)o 533o iso noto ano efficaciousoandoproperoremedyoinocaseoofoterminationoofodealership.oTheo Courtosetoasideoterminationoorderonoticingothatocompetentoauthorityodido notoconsiderothatoatowhatopointoofotimeounauthorizedotampering/solderingo waso doneo ino theo dispensingo unito ando howo theo dealero iso manipulatingo distributiono ofo fuel.o Thereo waso periodicalo inspectiono byo weighto ando measuremento departmento officialso ando sealo waso foundo intact.o Theo respondentohasofailedotooshowoimpactoofotampering/solderingoonodeliveryo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-11-o

unit.o o Theo deliveryo ofo fuelo waso foundo accurateo prioro tooando aftero theo checking.oMerelyoonoassumptionsothatotampering/solderingowasofoundoino theodeliveryounitoofotheodealer,odealershipocannotobeoterminated.oo

9.k oo Theo gisto ofo judgmentso citedo byo respondentso iso noticedo aso below:-o

9.1o o Hon'bleoSupremeoCourtoinoAmritsaroGasoServiceo(supra)ohaso heldo thato Arbitratoro aparto fromo othero prayerso cannoto allowo prayero ofo settingo asideo ofo ordero ofo terminationo ofo dealershipo agreement.o Theo Hon'bleoApexoCourtowhileosettingoasideoawardoofoArbitratoroheldothato Arbitratoro cannoto restoreo dealershipo agreemento ando heo cano granto compensationoofonoticeoperiod.oo

9.2oo o Allahabado Higho Courto ino Savitrio Devio ando Otherso (supra)o dealtowithoorderoofoterminationoofodealershipoagreementoonotheogroundo thato twoo externalo yellowo wireso wereo foundo ono theo pulsaro ofo dualo dispensingounitoofoMakeoMIDCO.oTheoCourtorepelledocontentionoofotheo petitionerothatothereowasonooallegationoofomanipulationoinodelivery.oTheo Courtoalsoorejectedocontentionoofotheopetitionerothatosealowasofoundointact.o

9.3oo oo GujaratoHighoCourtoinoNatvarlalo&oSonso(supra)oupheldoordero ofoterminationoofodealershipoagreementoonotheogroundothatomanufacturero ofotheoassemblyounitoinoitsoreportohasoconfirmedothatounitowasomodifiedotoo giveo100omloshortodeliveryoforoeveryo5oLtr.odelivered.oItowasofurtherofoundo thatoafteroswitchingooffotheopoweroandoturningoitoon,othereowasochangeoino theobehavioroofotheounit.oTheoCourtoheldothatothereoisolossotoopublicoato largeoandoitoisoonlyotheodealerowhooisobeneficiaryobyoshortodelivery.oo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-12-o

o

9.4oo o AotwoojudgmentobenchoofoHon'bleoSupremeoCourtoinoIndiano OiloCorporationoLimitedoandoOthersoVersusoR.M.oServiceoCentreoando Another;o2019o(19)oSCCo662ohasoadvertedowithoquestionoofoterminationo ofodealershipoagreementoonotheogroundoofovariationoofostockoandoothero irregularities.oInothisocase,otheodealerowasograntedodealershipoofoMS/HSD.o Theoofficialsoofocorporationoconductedostockoverification.oSamplesocameo toobeodrawnofromotanksowhichowereosentoforotesting.oAsoperotestoreport,o theosamplesofailedotoomeetotheospecifications.oAoshowocauseonoticeocameo toobeoissued.oTheodealeropleadedothatodispensingounitowaso20oyearsooldo ando dueo too lacko ofo maintenance,o totalizero hado beeno showingo wrongo readings.o Theo dealershipo agreemento cameo too beo terminatedo ono theo groundsonamelyo(i)oothereowasostockovariationobeyondopermissibleolimit;o

(ii)o nozzleo sampleo ofo HSDo failed;o (iii)o referenceo densityo waso noto available;o (iv)o o TTo Retentiono sampleo waso noto available.o Theo dealero preferredowritopetitionobeforeoGuwahatioHighoCourtowhichocameotoobeo allowedoonotheogroundoofonon-complianceoofotimeoperiodospecifiedoinotheo guidelines.oIntraocourtoappealofiledobyocorporationocameotoobeodismissed.o Theo corporationo preferredo SLPo beforeo Hon'bleo Supremeo Courto whicho cameotoobeoallowed.oTheoApexoCourtoheldothatoterminationoorderocannoto beosetoasideoonotheogroundoofodelayoinosendingosamplesoforotesting.oTheo testo reportso haveo foundo adulteration,o thus,o corporationo haso rightlyo terminatedodealershipoagreement.oTheoCourtorepelledocontentionoofotheo dealerothatothereowasonon-complianceoofoClauseo7oreadowithoSectiono100o 2023.08.09 18:01ofotheoCriminaloProcedureoCode.oTheoApexoCourtoheldothatoprovisionsoofo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-13-o

searchoandoseizureocontainedoinoClauseo7oreadowithoSectiono100oofotheo Codeowillocomeointooplayoonlyoinotheoeventoaopersonoisosoughtotoobeo prosecutedoforotheoviolationoofoprovisionsoofotheocontroloorder.oo

10.k ooo Ino Bharato Petroleumo Corporationo Limitedo Versuso JagannathoandoCo.oandoOthers;o2013o(12)oSCCo278,oHon'bleoSupremeo Courtodismissedoappealoofotheocorporationoandoupheldoorderopassedobyo HighoCourt.oInothisocase,oanoinspectionowasoconductedobyoofficialsoofotheo BPCL.oDuringotheoinspection,ocertainoirregularitiesowereofoundoforowhicho sampleso wereo drawno ando saleo ofo allo theo productso waso suspended.o Dispensingounitsoandotanksowereosealed.oTheosamplesowereosentotooqualityo contrololaboratoryoofotheocorporationowhichoconfirmedothatosamplesohaveo failedo too meeto theo requiredo specifications.o Theo corporationo terminatedo dealershipo agreemento ando dealero preferredo writo petitiono beforeo Higho Courtowhichocameotoobeoallowed.oTheoHighoCourtosetoasideoterminationo orderoonotheogroundooforejectionooforequestoofotheodealerotoodrawofresho samplesoandogetotheosameore-tested.oTheocorporationofiledoreviewopetitiono whichocameotoobeodismissed.oTheocorporationopreferredoSLPobeforeotheo ApexoCourt.oTheoApexoCourtoupheldoorderoofoHighoCourtoonotheogroundo thatocorporationohasofailedotoocomplyowithotheoguidelinesoandoPetroleumo Act,o1934.oo

11.k oo InoHindustanoPetroleumoCorporationoLimitedoandoOtherso Versuso Supero Highwayo Serviceso ando Another;o 2010(3)o SCCo 321o Hon'bleo Supremeo Courto dismissedo specialo leaveo petitiono ofo theo corporationoandoupheldoorderoofotheoHighoCourt.oTheoHon'bleoCourtoheldo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-14-o

thato cancellationo ofo dealershipo agreemento ofo ao partyo iso ao seriouso punishmentoandocannotobeotakenolightly.oTheocorporationohasotooactofairlyo andoinocompleteoadherenceotootheorules/guidelinesoframedoforotheosaido purpose.o Theo non-serviceo ofo noticeo too theo aggrievedo persono beforeo terminationo ofo hiso dealershipo agreemento offendso theo well-establishedo principlesoofonaturalojustice.oHon'bleoCourtodeclinedocontentionoofotheo corporationothatothereowasoarbitrationoclauseoinotheodealershipoagreement.oo o12.k o Hon'bleo Supremeo Courto ino Syedo Yakoobo Versuso K.S. Radhakrishnano ando Others,o 1964o AIRo (Supremeo Court)o 477o haso advertedowithoscopeoofointerferenceounderoArticleo226oagainstoordersoofo CourtsoandoTribunals.oTheoHon'bleoSupremeoCourtohasoheldothatofindingo ofo facto cannoto beo reopened.o Writo Courto cano interfereo ifo Tribunalo haso refusedotooadmitoadmissibleoevidenceooroadmittedoinadmissibleoevidenceo orofindingoisobasedoononooevidenceoorothereoisoerroroofolawooroprocedureoiso notofollowed.oTheorelevantoextractsoofotheoaforesaidojudgmentoreadoaso:o "7.o Theoquestionoaboutotheolimitsoofotheojurisdictiono ofoHighoCourtsoinoissuingoaowritoofocertiorarioundero Articleo 226o haso beeno frequentlyo consideredo byo thiso Courtoandotheotrueolegalopositionoinothatobehalfoisonoo longeroinodoubt.oAowritoofocertiorariocanobeoissuedoforo correctingoerrorsoofojurisdictionocommittedobyoinferioro courtsoorotribunalso:otheseoareocasesowhereoordersoareo passedo byo inferioro courtso oro tribunalso withouto jurisdiction,o oro iso ino excesso ofo it,o oro aso ao resulto ofo failureotooexerciseojurisdiction.oAowritocanosimilarlyobeo issuedowhereoinoexerciseoofojurisdictionoconferredoonoit,o theoCourtooroTribunaloactsoillegallyooroimproperly,oasoMOHIT KUMAR o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-15-o

foroinstance,oitodecidesoaoquestionowithoutogivingoano opportunity,o beo heardo too theo partyo affectedo byo theo order,oorowhereotheoprocedureoadoptedoinodealingowitho theodisputeoisoopposedotooprinciplesoofonaturalojustice.o Thereo is,o however,o noo doubto thato theo jurisdictiono too issueoaowritoofocertiorarioisoaosupervisoryojurisdictiono andotheoCourtoexercisingoitoisonotoentitledotooactoasoano appellateoCourt.oThisolimitationonecessarilyomeansothato findingso ofo facto reachedo byo theo inferioro Courto oro Tribunalo aso resulto ofo theo appreciationo ofo evidenceo cannotobeoreopenedooroquestionedoinowritoproceedings.o Anoerroroofolawowhichoisoapparentoonotheofaceoofotheo recordocanobeocorrectedobyoaowrit,obutonotoanoerroroofo fact,ohoweverograveoitomayoappearotoobe.oInoregardotooao findingo ofo facto recordedo byo theo Tribunal,o ao writo ofo certiorariocanobeoissuedoifoitoisoshownothatoinorecordingo theosaidofinding,otheoTribunalohadoerroneouslyorefusedo too admito admissibleo ando materialo evidence,o oro hado erroneouslyoadmittedoinadmissibleoevidenceowhichohaso influencedotheoimpugnedofinding.oSimilarly,oifoaofindingo ofofactoisobasedoononooevidence,othatowouldobeoregardedo asoanoerroroofolawowhichocanobeocorrectedobyoaowritoofo certiorari.o Ino dealingo witho thiso categoryo ofo cases,o however,oweomustoalwaysobearoinomindothatoaofindingoofo factorecordedobyotheoTribunalocannotobeochallengedoino proceedingsoforoaowritoofocertiorarioonotheogroundothato theorelevantoandomaterialoevidenceoadducedobeforeotheo Tribunalowasoinsufficientooroinadequateotoosustainotheo impugnedo finding.o Theo adequacyo oro sufficiencyo ofo evidenceoledoonoaopointoandotheoinferenceoofofactotoobeo drawnofromotheosaidofindingoareowithinotheoexclusiveo jurisdictionoofotheoTribunal,oandotheosaidopointsocannoto MOHIT KUMAR beoagitatedobeforeoaowritoCourt.oItoisowithinotheseolimitso o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-16-o

thato theo jurisdictiono conferredo ono theo Higho Courtso underoArticleo226otooissueoaowritoofocertiorariocanobeo legitimatelyo exercisedo (video Hario Vishnuo Kamatho v.o SyedoAhmadoIshaqueo[(1955)o1oSCRo1104]oNagandrao Natho Borao v.o Commissionero ofo Hillso Divisiono ando Appealso Assamo [(1958)o SCRo 1240]o ando Kaushalyao Deviov.oBachittaroSingho[AIRo1960oSCo1168]"o

13.k oo Fromotheoperusalooforecord,oitocomesooutothatotheopetitionero haso beeno fastenedo witho majoro penaltyo ofo terminationo ofo dealershipo agreementoonotheogroundothatoviolationofallsounderotheocategoryoofocriticalo irregularitiesoasocontemplatedounderoChaptero8oofoMarketingoDisciplineo Guidelines.oTheorelevantoextractsoofoChaptero8oofotheoGuidelinesoreadoas:-o "8.o ActionotoobeotakenobyoOMCounderotheoMarketingo DisciplineoGuidelineso o

8.1o Allo irregularitieso (mentionedo ino chaptero 5)o areo classifiedo intoo threeo categories,o i.e.o Critical,o MajoroandoMinor.o

8.2o Criticalo Irregularities:o Theo followingo irregularitieso areo classifiedo aso criticalo irregularities:o ooo o o o i.oo AdulterationoofoMS/HSDo(5.1.1)o ii.o Sealsoofotheometeringounitofoundotamperedo inotheodispensingopumps.o{5.1.2(b)?oo iii.o Totalizerosealoofodispensingounitotamperedo oro deliberatelyo makingo theo totalizero nono functionalooronotoreportingotootheocompanyo ifotheototalizeroisonotoworking.o(5.1.3oreado witho5.1.2)o iv.o Additional/Unauthorizedofittingsoandogearso insideotheodispensingounits/tamperingowitho MOHIT KUMAR dispensingounits.o(5.1.4)o o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-17-o

v.o Unauthorizedostorageofacilitieso(5.1.5)o vi.o Unauthorizedo purchase/saleso ofo productso (5.1.6)o vii.o Tankolorryocarryingounauthorizedoproducto foundounderodecantationoatotheoROo(5.1.7)o Action:o TerminationoatotheoFIRSToinstanceowillobeo imposedoforotheoaboveoirregularities." o

14.k o Ino theo caseo ino hand,o ano inspectiono waso conductedo ono

17.06.2014.oDuringotheocourseoofoinspection,othriceodeliveryoofo5oLtrs.o waso madeo fromo MIDCOo Makeo Dispensingo Unit.o Everyo timeo shorto deliveryowasofound.oDUowasoswitchedooffoandorestarted.oAtothisostage,onoo shortodeliveryowasofound.oTheoprimeocontentionoofotheopetitioneroisothato thereo waso noo alterationo ino theo sealo affixedo byo departmento ofo Legalo Metrology.oTheopetitioneroisoattemptingotoosupportohisocaseowithotheohelpo ofotestoreportoofoGilbarcooVeederoRooto(OEM)oi.e.omanufactureroofooneo typeo ofo pulsar.o Theo respondento iso relyingo upono testo reporto ofo pulsaro assemblyomakeoMIDCOowhichoinoitsotestoreportodatedo01.03.2016ohaso reportedotampering.oTheorelevantoextractsoofotheoreportoareoreproducedoaso below:-o Tests/Parametero Resulto Remarko Visualo NOToOKo 1.o o Allo threeo Pulsero Inspectiono (Refero sensorosignalocableso Note:o Remarks)o areo foundo Visualo disconnectedo fromo inspectiono haso PulseroPCB.o beeno doneo o withouto 2.ooTwoooutoofothreeo providingo sensoro cableso areo Powero too theo foundoshort.o receivedo o materialso undero 3.ooOneoofotheosensoro test.o iso foundo shortenedo withonegativeosupplyo 2023.08.09 18:01 point.o o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-18-o

o

4.o o Pulsero cardo mountingoMSostudoiso foundo brockeno fromo theocasting.o o o Deliveryo Testo NOToOKo Sinceo theo Pulsero witho Idleo Modeo (Refero Assemblyowasofoundo &oPOSoModeo Remark)o ino tamperedo condition,o hence,o furthero testso wereo noto carriedo outo ono receivedoassembly.o o oo o Theoaforesaidotestoreportowasopreparedoinotheopresenceoofotheo petitioner.o Thereo waso shorto deliveryo fromo MIDCOo makeo DUo ando manufacturero(MIDCO)ohasoconfirmedothatothereowasotamperingoinotheo pulsaro assemblyo ando ito waso noto aso pero MIDCOo standards.o Reporto ofo GilbarcooVeeder-RootowithorespectotooanotheroDUobecomesoirrelevanto becauseo tamperingo iso noto necessaryo ino allo theo dispensingo units.o Theo petitionero waso havingo 8o DUso ando substantialo saleo waso madeo fromo MIDCOoMakeoDU.oTheocompetentoauthorityohasorecordedoaofindingothato theo petitionero haso cheatedo customerso ando enrichedo himselfo byo shorto deliveringotheoproduct.oo

15.k oo Theo contentiono ofo theo petitionero thato thereo waso noo breakage/tamperingoofosealocannotobeocountenancedobecauseoatotheotimeo ofoinspection,othreeotimesodeliveryoofo5oLtrs.ooilowasomadeoandoeachotimeo shorto deliveryo waso found.o Theo manufacturero ofo theo equipmento haso confirmedotamperingoofoequipment.oCaseoofotheopetitioneroisocoveredobyo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-19-o

judgmentoofoHon'bleoSupremeoCourtoinoR.M.oServiceoCentreo(supra)oando judgmentoofoGujaratoHighoCourtoinoNatvarlalo&oSonso(supra).oo

16.k o Theocontentionoofotheopetitionerothatohisoactofallsounderotheo categoryoofominoroirregularities,othus,ominoropenaltyocouldobeoimposed,o cannotobeoacceptedobecauseoitoisoaocaseoofotamperingowithodispensingounito whicho iso evidento fromo shorto deliveryo coupledo witho reporto ofo theo manufacturer.ooo

17.k oo Theojudgmentsocitedobyopetitionerohaveobeenodeliveredoinotheo involvedofactsoandocircumstances.oNoobindingoprecedentohasobeenolaido down,othus,oeveryocaseoneedsotoobeoexaminedoinotheolightoofoitsofactsoando circumstances.oTheocommonothreadorunningothroughotheojudgmentsocitedo byobothosidesoisothatoifothereoisomalopractice,otampering,oshortodelivery,o actionoshouldobeotaken.oActionoshouldobeotakenobyocompetentoauthorityo ando thereo shouldo beo complianceo ofo principleso ofo naturalo justiceo ando guidelinesolaidodownobyotheocorporation.o

18.k oo Theomatteroneedsotoobeoexaminedofromotheoangleoofoscopeoofo interferenceoinodisciplinaryomattersowhereoauthoritiesohaveopassedoorder.o Theo Hon'bleo Supremeo Courto timeo ando againo haso remindedo thato ino disciplinaryo matters,o theo Higho Courto cannoto interfereo unlesso ando untilo thereoisomalaofideooroviolationoofoprescribedoprocedureooroviolationoofo principlesoofonaturalojusticeoorotheofindingsorecordedoareoapparentlyoeithero basedoupononooevidenceoorocontraryotootheoevidence.ooo

19.k ooo Inotheocaseoinohand,oallotheoquestionsoraisedobyopetitioneroareo I attest to the acdcuirsacpy aundtedoquestionsoofofactoandoCourtodoesonotofindoeitheromalaofideoonotheo o CWP-26964-2017o(O&M)o&oCWP-7708-2017o(O&M)o ooooooooooooooooooooooo-20-o

parto ofo theo respondento oro violationo ofo principleso ofo naturalo justiceo oro prescribedoprocedureooroanyoglaringoinfirmityowarrantingointerferenceoofo thisoCourtounderoArticleso226/227oofotheoConstitutionoofoIndia.oo

20.k oo Inoviewoofoaboveofactsoandofindings,othisoCourtodoesonotofindo anyosubstanceoinotheopetition.oTheopetitionodeservesotoobeodismissedoando accordinglyodismissed.o Pendingoapplication(s),oifoany,oalsoostand(s)odismissed.o o (JAGMOHANoBANSAL)o o o o o o o o o o ooooooJUDGEoo

09.08.2023o MohitoKumaro Whetherospeaking/reasonedo Yes/Noo Whetheroreportableo Yes/Noo o