NDLI: Indian Oil Corporation Ltd. & Ors. Vs. M/s. R.m. Service Centre & Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Marketing Discipline Guidelines 5.1.9 Termination of the dealership 8.2 and sub-cl.I of cl.2.5 2012 Cl.5.1.11
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Marketing Discipline Guidelines, 2012 – Cl.5.1.11, 5.1.9, 8.2 and sub-cl.I of cl.2.5 – Termination of the dealership – Respondent No.1-dealer had retail dealership for sale of motor spirit (petrol), High Speed Diesel, motor oil and grease – A joint inspection was conducted by the appellants and it was found that there was variation of stock of High Speed Diesel beyond permissible limit and non-availability of reference density was also observed – Samples were drawn and sent for testing – The samples failed to meet the specifications – The dealer was informed of the result – Thereafter, dealership was terminated – Writ petition by the dealer – The Single Judge of the High Court allowed the writ petition and held that there was non-compliance of the timeline fixed for submitting the samples for testing in laboratory – The samples were required to reach the laboratory preferably within ten days whereas, the first sample was sent and tested after ten days and the umpire sample was tested even later – Decision of the Single Judge of the High Court was upheld by the Division Bench of the High Court – On appeal, held: In the instant case, there was a delay of 5 days – Since the guidelines use the timeline as a preferred timeline, it cannot be said that the timeline mentioned has to be strictly adhered to and is mandatory – The language, the purport and the effect of testing do not warrant to read the word ‘preferably’ as mandatory timeline – There was variation in stock beyond permissible limits – In case of positive stock variation beyond permissible limits and on account of failure of sample, action in line with that of adulteration was to be initiated – The adulteration in these circumstances was a critical irregularity falling in Cl.8.2 of the guidelines and the action required to be taken was termination of the dealership – The action was rightly taken to terminate the dealership of the respondent no.1 – Consequently, the order passed by the High Court set aside.
Judge	Hon'ble Mr. Justice Hemant Gupta
Neutral Citation	2019 INSC 1222
Petitioner	Indian Oil Corporation Ltd. & Ors.
Respondent	M/s. R.m. Service Centre & Anr.
SCR	[2019] 13 S.C.R. 1113
Judgement Date	2019-11-07
Case Number	8257

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