01Facts
The petitioner had been operating a retail outlet for Indian Oil Corporation Ltd. (IOCL) since 1973.
¶ 3On 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.
¶ 4The report admitted that no additional electronic devices or chips were recovered, and fuel delivery quantity was found accurate.
¶ 4IOCL terminated the dealership on 04.07.2017 for alleged "tampering" under the Marketing Discipline Guidelines (MDG-2012).
¶ 5The petitioner’s statutory appeal was dismissed on 15.05.2018.
¶ 502Issues
i.Whether the termination of the dealership was legally sustainable in the absence of technical proof of delivery manipulation or discovery of unauthorized devices.
03Law Applied
Marketing Discipline Guidelines (MDG-2012) regarding "tampering" of dispensing units.
¶ 5Provisions in the judgment · 9
Marketing Discipline Guidelines, 2012 Section 1Section 5Section 8
Dealership Agreement Section 15Section 16Section 19Section 44Section 58Section 58
04Reasoning
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.
¶ 4The 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.
¶ 405Holding
Termination based on suspected tampering without technical proof of delivery manipulation or unauthorized devices is legally unsustainable.
The order of termination dated 04.07.2017 and the appellate order dated 15.05.2018 are set aside.
Original Court PDF
M/S Sardar Baldev Singh And Co. Thru. Prop.Sri Karamjeet SinghvsIndian Oil Corporation Ltd. Thru. Executive Director And Ors.
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