M/S Ehsaas Filling Station & Ors. vs Indian Oil Corporation Ltd.
- Court
- Delhi High Court
$~J
* IN THE HIGH COURT OF DELHI AT NEW DELHI
%
Judgment pronounced on: 16.10.2026
# CNR No.DLHC010328092026
+ ARB.P. 1221/2026, IA No.19477/2026, IA No.19478/2026
M/S EHSAAS FILLING STATION & ORS. .....Petitioners
Through: Mr. Shashank Agarwal, Ms. Aayushi
Singh, Mr. Abhishek Taneja and Mr.
Surya Pratap Sirohi, Advs.
versus
INDIAN OIL CORPORATION LTD. .....Respondent
Through: Mr. Rajiv Shukla, Ms. Shivani
Kapoor, Mr. Sanjay Kumar, Mr.
Manish Bhardwaj and Mr. Manish
Kumar, Advs.
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
JUDGMENT
1. The present petition has been filed under Section 11 of the Arbitration
and Conciliation Act, 1996 (hereinafter ‘A&C Act’ ), seeking appointment of
a Sole Arbitrator to adjudicate the disputes between the parties.
2. The disputes emanate from a Motor Spirit and High Speed Diesel
Retail Outlet Dealership (‘B’ Site) Agreement dated 03.06.2014 (hereinafter
“ Dealership Agreement ”), executed between the parties, in respect of the
retail outlet situated at Khasra No. 17/72/2, Main Khewra Road, Bahalgarh,
District Sonipat, Haryana.
3. The disputes are stated to have originated on account of suspension of
sale and supply of petroleum products from the retail outlet by the
respondent vide communications dated 14.09.2020 and 15.09.2020, despite a
clean inspection report dated 12.09.2020 furnished by the Petroleum and
ARB. P. 1221/2026 Page 1 of 6
Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:52:26
Explosives Safety Organisation (PESO).
4. It is submitted that a Show Cause Notice (SCN), proposing
termination of the Dealership Agreement was thereafter issued by the
respondent on 17.12.2021, after a lapse of over 400 days.
5. It is further submitted that the parties attempted to settle the disputes
amicably through a consensual framework recorded in the Minutes of
Meeting dated 26.03.2022 (Annexed as Document –8 to the present
petition), which was reinforced by a consent order dated 07.12.2022 passed
by this Court in W.P.(C) No. 16762/2022 titled “ Ehsaas Filling Station v.
IOCL” . The respondent, however, failed to honour the said arrangement.
6. Subsequently, a fresh SCN dated 05.01.2026 was issued to the
petitioners.
7. It is submitted that another set of disputes, also arose in context of the
CNG facility installed at the aforesaid retail outlet. The cumulative effect of
the aforesaid conduct of the respondent has resulted prolonged closure of the
retail outlet for approximately 33 months (14.09.2020 to 12.07.2023),
causing substantial financial loss, reputational damage to the petitioners.
8. The Arbitration Clause contained in the Dealership Agreement dated
03.06.2014 is as under:
ARB. P. 1221/2026 Page 2 of 6
Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:52:26
ARB. P. 1221/2026 Page 3 of 6
Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:52:26
9. A notice invoking arbitration was issued by the petitioners on
20.04.2026, which, however, did not elicit any response.
10. In the above circumstances, the petitioners have approached this
Court by way of the present petition, seeking appointment of a sole
arbitrator to adjudicate the disputes between the parties.
11. Learned counsel for the petitioners, has highlighted the following
ARB. P. 1221/2026 Page 4 of 6
Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:52:26
extracts of the Termination Order dated 30.06.2026, appended as Document
1 to the respondent’s reply dated 18.09.2026, which has been handed over
during the course of proceedings, wherein, the respondent has acknowledged
the existence of the arbitration agreement between the parties. The relevant
extracts of the said Termination Order are as under:
“Accordingly, the dealership agreement dated 03.06.2014, executed
between you and the Corporation, is hereby terminated with immediate
effect and you cease to be the dealer of the Corporation henceforth. You
are hereby advised to hand over the equipment belonging to the
Corporation to the authorized official of the Corporation and settle your
accounts within 10 days of the date of this letter. You are also advised to
act upon as per clause 59-63 of the Dealership Agreement, which is
applicable despite the termination of the agreement. You may please
contact our Divisional Office for any assistance if required .”
12. The above makes it evident that the existence of arbitration agreement
is not in dispute.
13. In the circumstances, since the existence of the arbitration clause is
admitted, in light of the judgment rendered by the Supreme Court in Perkins
Eastman Architects DPC v. HSCC (India) Ltd , (2020) 20 SCC 760, TRF
Limited v. Energo Engineering Projects Ltd , (2017) 8 SCC 377, Bharat
Broadband Network Limited v. United Telecoms Limited ., 2019 SCC
OnLine SC 547, SBI General Insurance Co. Ltd. v. Krish Spinning , 2024
INSC 532, and Interplay between Arbitration Agreements under the
Arbitration & Conciliation Act, 1996 & the Indian Stamp Act, 1899, In re,
2023 SCC OnLine SC 1666, there is no impediment in constituting an
arbitral tribunal to adjudicate the disputes between the parties.
14. Accordingly, Ms. Parul Tuli, Advocate (Mob. No. +91 9810162324)
is appointed as the Sole Arbitrator to adjudicate the disputes between the
parties.
ARB. P. 1221/2026 Page 5 of 6
Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:52:26
15. The respondents shall be at liberty to raise preliminary objections as
regards arbitrability/jurisdiction, if any, which shall be decided by the
arbitrator, in accordance with law.
16. The learned Sole Arbitrator may proceed with the arbitration
proceedings subject to furnishing to the parties the requisite disclosure as
required under Section 12 of the A&C Act.
17. Let the arbitration take place under the aegis of and asper the rules of the
Delhi International Arbitration Centre (DIAC).
18. All rights and contentions of the parties in relation to the claims/counter
claims are left open, to be decided by the learned Sole Arbitrator on merits, in
accordance with law.
19. Needless to say, nothing in this order shall be construed as an expression
of opinion of this Court on the merits of the case.
20. The present petition, along with the pending applications, stands
disposed of in the above terms.
SACHIN DATTA, J
OCTOBER 16, 2026/ ss
ARB. P. 1221/2026 Page 6 of 6
Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:52:26