Allahabad High Court M/S Agarwal Brothers Thru. Prop. Manju ... vs Indian Oil Corp. Ltd. Mumbai & Ors. on 21 November, 2019 Equivalent citations: AIRONLINE 2019 ALL 2119 HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH Court No. 3 Case : MISC. BENCH No. 31923 of 2019 Petitioner : M/S Agarwal Brothers Thru. Prop. Manju Devi Respondent : Indian Oil Corp. Ltd. Mumbai & Ors. Counsel for Petitioner : Tushar Hirwani,Amrendra Singh Counsel for Respondent : Manish Jauhari Hon'ble Anil Kumar,J. Hon'ble Saurabh Lavania,J. Heard Sri Nirmal Seth, learned Senior Advocate assisted by Sri Tushar Hirwani, learned counsel for the petitioner and Sri Raghvendra Singh, learned Senior Advocate assisted by Sri Manish Jauhari, learned counsel for the respondents. By means of the present writ petition, the petitioner has prayed for the following main relief: "(i) Issue a writ order or direction in the nature of certiorari thereby quashing termination order dated 11.11.2019 (Contained as Annexure No.1 to this writ petition) terminating the dealership of the petitioner together with the fact finding letter dated 01.06.2017 (Annexure No.6) and the show cause notice dated 06.11.2017 (Condtained as Annexure No.8 to this writ petition), in the interest of justice." Sri Nirmal Seth, learned Senior Advocate while pressing the reliefs sought in the writ petition submitted that the Indian Oil Corporation Ltd. (in short 'Corporation')opposite party No. 1 by way of dealership agreement, has granted a retail outlet of petroleum products to the petitioner at Jiyamau, Lucknow in the name and style M/S Agarwal Brothers Thru. Prop. Manju Devi. On 01.05.2017, an inspection was made of the retail outlet of the petitioner, at Jiyamau, Lucknow and the inspection report was prepared, wherein it was reported that Machine No. 2 Pulsar soldering of Nozzle No. 3 was not proper. However, in the inspection, neither any short supply was found nor seals of the wights and measurement department were reported to be broken nor any chip was reported to be installed. Sri Nirmal Seth, learned Senior Advocate further submitted that prior to inspection on 01.05.2017, the authorities of Indian Oil Corporation on 13.04.2017 carried out Stamping of the Dispensing Unit in the presence of the officials of the Weight and Measurement Department as well as OEM (Original Equipment Manufacturer) Service Engineer. During the Stamping procedure, no irregularity was found in dispensing unit. It is further submitted that in the presence of the Company Fitter, the inspection was done on 13.04.2017 and no soldering was found. Sri Nirmal Seth, learned Senior Advocate further submitted that on the basis of the inspection report dated 01.05.2017, the Corporation issued a fact finding letter dated 01.06.2017 to the petitioner inter alia stating therein that the petitioner has violated the Guidelines of the Corporation known as Marketing and Discipline Guidelines, 2012 (in short 'Guidelines of 2012') and the dealership agreement. To the fact finding report, the petitioner submitted the reply, however, ignoring the reply of the petitioner, a showcause notice dated 06.11.2017 was issued to the petitioner. The charges mentioned in the show cause notice read as under: "(1) Soldering in Pulsar, nozzle no.3, was not proper which is a critical irregularity. (Violation of clause 5.4.4 of Marketing Discipline Guidelines (MDG) 2012 (Additional/unauthorized fittings/gears found in Dispensing unit/tampering with dispensing unit). (2) Stock Reconciliation: Stock reconciliation could not be done as the DSR of 201617 was not available at the RO, which is a major irregularity. (Violation of clauses 5.1.12 of MDG 2012)." Thereafter, the petitioner submitted his reply to the showcause notice inter alia stating therein that on the basis of the inspection report dated 01.05.2017, a complaint was lodged under Section 200 of Cr.P.C. and under Section 26 of the Legal Metrology Act, 2009 against the petitioners' firm before the ACJM1, Lucknow. On 25.10.2017, the petitioner moved an application before the ACJM1, Lucknow praying therein that the pulsar/device obtained from the retail outlet of the petitioner should be got tested by an independent agency approved by the State. The ACJM1, Lucknow vide order dated 18.01.2018 directed that the pulsar in question should be sent to Forensic State Laboratory, U.P., Lucknow (in short 'FSL') of testing. On 23.08.2018, FSL gave its report inter alia stating therein that no electronic device or tampering has been found in the said pulsar. The said fact was intimated to the Corporation vide letter dated 28.08.2018. Sri Nirmal Seth, learned Senior Advocate vehemently submitted that the Authority concerned of the Corporation terminated the dealership of the petitioner without taking into consideration the report dated 23.0