{"id":199095,"date":"2011-03-21T00:00:00","date_gmt":"2011-03-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ashimit-vs-i-on-21-march-2011"},"modified":"2015-06-10T23:58:06","modified_gmt":"2015-06-10T18:28:06","slug":"ashimit-vs-i-on-21-march-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ashimit-vs-i-on-21-march-2011","title":{"rendered":"Ashimit vs I on 21 March, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Ashimit vs I on 21 March, 2011<\/div>\n<div class=\"doc_author\">Author: Anant S. Dave,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nSCA\/25078\/2007\t 6\/ 6\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 25078 of 2007\n \n\n \n\n\n \n\n=========================================================\n\n \n\nASHIMIT\nGAS AGENCY - Petitioner(s)\n \n\nVersus\n \n\nI\nO C LTD - Respondent(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nUDAYAN P VYAS for\nPetitioner(s) : 1, \nMR MANISH R BHATT for Respondent(s) :\n1, \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE A.S.DAVE\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 05\/10\/2007 \n\n \n\n \nORAL\nORDER<\/pre>\n<p>The<br \/>\n\tpetitioner has filed the present writ petition under Article 226 of<br \/>\n\tthe Constitution of India challenging the notice of termination<br \/>\n\tdated 10.7.2007 issued by the respondent whereby distributorship of<br \/>\n\tthe petitioner of petroleum products came to be terminated.  The<br \/>\n\tpetitioner was also directed to hand over all equipments and<br \/>\n\tdocuments pertaining to distributorship  to the representative of<br \/>\n\tthe respondent immediately.\n<\/p>\n<p>The<br \/>\n\tchallenge in this petition is basically a dispute arising out of<br \/>\n\tviolation of clause 23(b) and (c-i) of the distributorship agreement<br \/>\n\tdated 1.8.1997.  It is also to be noted that before terminating the<br \/>\n\tdistributorship, show cause notice dated 1.11.2006 was issued and<br \/>\n\tpetitioner herein filed reply on 4.12.2006 denying the allegations<br \/>\n\tand thereafter, the impugned notice of termination came to be<br \/>\n\tpassed.\n<\/p>\n<p>In<br \/>\n\tthe impugned show cause notice dated 10.7.2007, three charges are<br \/>\n\tlevelled; (i) the petitioner allowed control of the Distributorship<br \/>\n\tby Shri Ashish Patel who is an unauthorized person; (ii) the<br \/>\n\tpetitioner has executed a partnership deed dated 25.12.1996 with<br \/>\n\tShri Ashish Patel without the knowledge and approval of IOC; and\n<\/p>\n<p>\t(iii) the petitioner has issued General Power of Attorney dated<br \/>\n\t25.12.1996 in favour of Shri Ashish Patel without the knowledge and<br \/>\n\tapproval of IOC.  So far as the petitioner is concerned, necessary<br \/>\n\tdocuments from IOC were sought for since the above show cause notice<br \/>\n\twas based on the findings of the Inquiry Report,  which form the<br \/>\n\tbasis of notice of termination.  In the reply dated 4.12.2006 the<br \/>\n\tpetitioner denied the allegations and submitted that no irregularity<br \/>\n\twas committed by him and show cause notice requires to be withdrawn.<br \/>\n\t Not only that the performance of the petitioner&#8217;s distributorship<br \/>\n\twas by and large satisfactory and it was awarded star status.\n<\/p>\n<p>Mr.Vyas,<br \/>\n\tlearned counsel for the petitioner submits that the impugned<br \/>\n\ttermination notice is ex facie illegal and violative of<br \/>\n\tprinciples of natural justice since the Inquiry Report though relied<br \/>\n\ton by the Authority was not supplied to the petitioner, in spite of<br \/>\n\tthe fact that a specific demand was made by the petitioner.<br \/>\n\tMr.Vyas, for the petitioner, further submits that the impugned<br \/>\n\tnotice of termination resulted into violation of principles of<br \/>\n\tnatural justice and closure of his business, which is a fundamental<br \/>\n\tright therefore, the impugned notice of termination is devoid of any<br \/>\n\treason and violative of principles of natural justice and is<br \/>\n\trequired to be quashed and set aside.  Mr.Vyas, learned counsel for<br \/>\n\tthe petitioner further submits that even the petitioner has availed<br \/>\n\tof the remedy of arbitration, as prescribed under Clause 37 of the<br \/>\n\tdealership agreement, but the same is not alternative and<br \/>\n\tefficacious since the Arbitrator has no power to restore the<br \/>\n\tdistributorship even if the petitioner succeeds before the<br \/>\n\tarbitrator.  Mr.Vyas, learned counsel for the petitioner, further<br \/>\n\tsubmits that considering the overall performance of the petitioner,<br \/>\n\tthe respondent has awarded star status to the petitioner agency and<br \/>\n\teven on similar ground, no action was taken by the respondent and<br \/>\n\tthe distributorship came to be restored on earlier occasion.<br \/>\n\tTherefore, at this juncture,  no case exists for terminating the<br \/>\n\tdistributorship of the petitioner agency.  Mr.Vyas, learned counsel<br \/>\n\tfor the petitioner, lastly submits that, as per the rules, the<br \/>\n\trespondent can impose a lesser penalty by way of fine etc. and the<br \/>\n\tpunishment proposed by the respondent-IOC is disproportionate to the<br \/>\n\tcharges levelled against the petitioner.\n<\/p>\n<p>Mr.M.R.Bhatt,<br \/>\n\tlearned counsel appearing on caveat for the respondent-IOC drawn my<br \/>\n\tattention to the notice of termination and findings of the<br \/>\n\tAuthority, which clearly reveal that partnership deed dated<br \/>\n\t25.12.1996 was executed just after one month and after the letter of<br \/>\n\tintent dated 23.11.1996 issued to the petitioner by the respondent.<br \/>\n\tSo far as power of attorney is concerned, no further proof is<br \/>\n\trequired since the petitioner himself has published a public notice<br \/>\n\tin `Divya Bhaskar&#8217; dated 1.5.2004 cancelling the said power of<br \/>\n\tattorney.  However, Mr.Bhatt, learned counsel for the respondent-IOC<br \/>\n\thas submitted that there is no violation of principles of natural<br \/>\n\tjustice since the report of the Committee was a fact finding<br \/>\n\tcommittee for which the petitioner has nothing to do and it was a<br \/>\n\tkind of preliminary inquiry and findings of such inquiry committee<br \/>\n\tare not required to be supplied to the petitioner.  What was alleged<br \/>\n\tin the show cause notice, was already existed in the termination<br \/>\n\tnotice dated 10.7.2007 and the petitioner was made aware about the<br \/>\n\tsame.  Mr.Bhatt, learned counsel for the respondent-IOC further<br \/>\n\tsubmits that upon receipt of reply,  considering the violation of<br \/>\n\tclause 23(b) and (c-i) of agreement and other deviations, the<br \/>\n\timpugned notice of termination is passed.  Mr.Bhatt, lastly submits<br \/>\n\tthat what is challenged in this petition is termination of contract<br \/>\n\tbetween the petitioner and the respondent and writ petition under<br \/>\n\tArticle 226 of the Constitution of India is not a remedy.  Even<br \/>\n\totherwise also, according to Mr.Bhatt, there are disputed questions<br \/>\n\tof facts about false signature of the petitioner and distributorship<br \/>\n\tagreement which is referred to  hand-writing expert and preliminary<br \/>\n\topinion reflects that the same are forged.  All such issues cannot<br \/>\n\tbe looked into in a writ petition under Article 226 of the<br \/>\n\tConstitution of India and appropriate remedy is to file civil suit<br \/>\n\tfor claiming damages.  So far as agreement of distributorship is<br \/>\n\tconcerned, it also provides for arbitration and the same is availed<br \/>\n\tof by the petitioner therefore, powers under Article 226 of the<br \/>\n\tConstitution of India cannot be exercised in this petition.\n<\/p>\n<p>Having<br \/>\n\theard learned counsel for the parties and perusing the record of the<br \/>\n\tcase, I am of the considered opinion that no power under Article 226<br \/>\n\tof the Constitution of India can be exercised when there is<br \/>\n\tviolation of clause of agreement and dispute arises out of agreement<br \/>\n\tentered into between the parties.  Not only that but in the present<br \/>\n\tcase, remedy of arbitration is availed of and only because the<br \/>\n\tArbitrator is unable to restore the distributorship, the same cannot<br \/>\n\tbe a ground for invoking jurisdiction under Article 226 of the<br \/>\n\tConstitution of India. This relief can be claimed by filing a suit<br \/>\n\tbefore the court having jurisdiction.  Even otherwise also, there<br \/>\n\tare number of disputed questions of facts, viz. Execution of deed<br \/>\n\tdated 25.12.1996 after one month of letter of intent, allegation of<br \/>\n\tforgery, whether actual control of distributorship is with Shri<br \/>\n\tAshish Patel or not etc.,  which require material to be scrutinized<br \/>\n\tin the form of evidence and for which this court is not competent<br \/>\n\tenough.  So far as the merit of the case is concerned, the<br \/>\n\tpetitioner was given sufficient opportunity by issuing show case<br \/>\n\tnotice.  It is clear from the notice  of termination of<br \/>\n\tdistributorship that the petitioner has violated clause 23(b)(c-i)<br \/>\n\tof the distributorship agreement and that the petitioner has issued<br \/>\n\tpower of attorney to one Shri Ashish Patel and  the petitioner<br \/>\n\thimself has published a public notice in `Divya Bhaskar&#8217; dated<br \/>\n\t1.5.2004 cancelling the said power of attorney to which no further<br \/>\n\tproof is required.\n<\/p>\n<p>Considering<br \/>\n\tthe overall aspects of the matter, no case is made out to exercise<br \/>\n\textra-ordinary writ jurisdiction under Article 226 of the<br \/>\n\tConstitution of India.\n<\/p>\n<p>In<br \/>\n\tview of the above discussion, this petition fails and is hereby<br \/>\n\tdismissed.\n<\/p>\n<p>(ANANT<br \/>\nS. DAVE, J.)<\/p>\n<p>*pvv<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Ashimit vs I on 21 March, 2011 Author: Anant S. Dave,&amp;Nbsp; Gujarat High Court Case Information System Print SCA\/25078\/2007 6\/ 6 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 25078 of 2007 ========================================================= ASHIMIT GAS AGENCY &#8211; Petitioner(s) Versus I O C LTD &#8211; Respondent(s) ========================================================= Appearance [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-199095","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ashimit vs I on 21 March, 2011 - Free Judgements of Supreme Court &amp; 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