Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract - Distribution of gas agency by appellant- Corporation - To respondent Nos. 2 and 3 jointly - As per condition No. 2 of the 'Letter of allotment' the appointment was to be subject to the which was to be provided later-As per condition No. 8 of Jetter of allotment conditions contained in 'standard agreement' Corporation was at liberty to terminate the distributorship without assigning any reason - Copy of 'Standard agreement' never supplied to the respondents - Respondent No .. 2 transf |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Contract — Distribution of gas agency by appellani- Corporation — To respondent Nos. 2 and 3 jointly - As per condition No. 2 of the ‘Letter of allotment’ the appointment was to be subject to the, conditions contained in ‘standard agreement’, which was to be provided later—As per condition No. 8 of letter of allotment, Corporation was at liberty to terminate the distributorship without assigning any reason — Copy of ‘Standard agreement’ never supplied to the respondents — Respondent No..2 transferred his share in favour of his wife (respondent No. 1) — Termination of the distributorship by the Corporation on the ground of breach of terms and conditions of ‘Standard agreement'— Respondent No. 1 filed title suit seeking declaration that the termination was illegal, arbitrary and unjustified — Suit dismissed by trial court — First appellate court upheld the order of trial court — In second appeal, the High Court setting aside the judgments of courts below held the termination of distributorship as illegal, arbitrary and unjustified and directed for restoration of distributorship — On appeal, held: As per s. 7 of Contract Act acceptance must be absolute ~— The Standard agreement since not supplied to allottees, cannot be said to be concluded contract — It was legally not binding upon the allottees as the same was never executed between the allottees and the Corporation — Therefore, question of violation of terms and conditions thereof does not arise - The Corporation being Government of India undertaking, is bound to act fairly and reasonably — Its conduct is subject to the scrutiny on the touchstone of Art. 14 of the Constitution — Condition No. 8 of allotment letter providing for unilateral termination without assigning any reason is liable to be read -down in the light of Art. 14— Direction to Corporation to restore the distributorship — In the facts of the case, cost of Rs. 1 lakh to be paid to respondent Nos. 1 and 2— Contract Act, 1872—- s. 7 — Constitution of India, 1950 — Art. 14 - Public Distribution. Specific Relief Act, 1963—s.14(1)(c) ~Applicability of — Termination of distributorship of gas agency — The court holding the termination as illegal restored the distributorship — Distributorship whether restorable in view of provisions u/s. 14(1}(c) — Held: Provision u/s.14(1)(c) not applicable to the facts of the case because neither the contract was revocable nor had become void for any reason. |
Judge | Hon'ble Mr. Justice V. Gopala Gowda |
Neutral Citation | 2015 INSC 875 |
Petitioner | Indian Oil Corporation Ltd. |
Respondent | Nilofer Siddiqui & Ors. |
SCR | [2015] 13 S.C.R. 1196 |
Judgement Date | 2015-12-01 |
Case Number | 7266 |
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