Termination based on suspected tampering without technical proof of delivery manipulation or unauthorized devices is legally unsustainable.

The petitioner had been operating a retail outlet for Indian Oil Corporation Ltd. (IOCL) since 1973.

On 10.05.2017, a joint inspection of the outlet revealed taped joints in the pulsar cables of a "Tokheim" dispensing unit and a broken Weights and Measures seal on the pulsar of a "Gilbarco" unit.

The report admitted that no additional electronic devices or chips were recovered, and fuel delivery quantity was found accurate.

IOCL terminated the dealership on 04.07.2017 for alleged "tampering" under the Marketing Discipline Guidelines (MDG-2012).

The petitioner’s statutory appeal was dismissed on 15.05.2018.

Whether the termination of the dealership was legally sustainable in the absence of technical proof of delivery manipulation or discovery of unauthorized devices.

Marketing Discipline Guidelines (MDG-2012) regarding "tampering" of dispensing units.

The court examined that although there were taped joints and a broken seal, the inspection report itself confirmed that no electronic chips or external devices were found which facilitate delivery manipulation.

The court noted that the fuel delivery quantity was found to be accurate at the time of inspection, contradicting the allegation that the alleged tampering led to any misappropriation or loss.

The order of termination dated 04.07.2017 and the appellate order dated 15.05.2018 are set aside.