High Court Kerala High Court

Kumari Lekshmi.T.S vs The Indian Oil Corporation (Ioc) on 9 June, 2009

Kerala High Court
Kumari Lekshmi.T.S vs The Indian Oil Corporation (Ioc) on 9 June, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WA.No. 1159 of 2009()


1. KUMARI LEKSHMI.T.S.,
                      ...  Petitioner

                        Vs



1. THE INDIAN OIL  CORPORATION (IOC)
                       ...       Respondent

2. THE GENERAL MANAGER,

3. THE CHIEF L.P.G.MANAGER,

4. THE DIRECTOR (MARKETING)

5. UNION OF INDIA, REPRESENTED BY

                For Petitioner  :SRI.P.VIJAYA BHANU

                For Respondent  :SRI.P.PARAMESWARAN NAIR,ASST.SOLICITOR

The Hon'ble the Chief Justice MR.S.R.BANNURMATH
The Hon'ble MR. Justice KURIAN JOSEPH

 Dated :09/06/2009

 O R D E R
           S.R.Bannurmath, C.J. & Kurian Joseph, J.
                   ------------------------------------------
                      W.A. No. 1159 of 2009
                   ------------------------------------------
                 Dated, this the 9th day of June, 2009

                              JUDGMENT

Kurian Joseph, J.

Appellant is the petitioner in the writ petition. The writ

petition was filed challenging Exts.P2, P4 and P7 proceedings initiated

by the first respondent terminating her licence for distributorship of

LPG. The learned Single Judge dismissed the writ petition relegating

the petitioner to pursue the remedy under clause 37(a) of Ext.P1

agreement, for arbitration.

2. The main contention of the learned counsel appearing

for the appellant is that the said remedy will not be efficacious, since

the appellant has a case that the principles of natural justice have not

been complied with in taking the impugned action. It is also contended

that in respect of the charges levelled against the appellant for

termination of licence, no opportunity was given to the appellant to

cure the defects. At any rate, it is contended that the lapses are not so

W.A.No.1159 of 2009

– 2 –

grave to attract the extreme penalty of termination since Ext.P1(a) marketing

guidelines have prescribed certain penalties in respect of the lapses.

3. We are unable to take a different view from that of the view

taken by the learned Single Judge despite the persuasive arguments

advanced by the the learned counsel Mr.C.S.Narayanan in view of the

contractual relationship between the parties. We however make it clear that

the consequences of lack of notice and also the consequent action on the

alleged violation of the principles of natural justice are also matters which

should be gone into in the arbitration proceedings as referred to in clause 37

(a) of Ext.P1 since the Arbitrator is entitled to go into any right, liability, act

and omission on account of any of the parties arising out of or in relation to

the agreement. The question of mitigation of penalty can also be raised

before the Arbitrator.

Subject to this observation the writ appeal is dismissed.

S.R.Bannurmath,
Chief Justice

Kurian Joseph,
Judge
vns