VidhiSangh

Supreme Court of India · 07/11/2019

INDIAN OIL CORPORATION LTD. & ORS. versus M/S. R.M. SERVICE CENTRE & ANR.

[2019] 13 S.C.R. 1113 · 2019 INSC 1222

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Summary

Indian Oil challenged orders setting aside termination of a diesel dealership for stock variation and failed quality tests. The Court held that the Guidelines’ preferred ten-day dispatch period was not mandatory, the criminal search-and-seizure procedure did not govern this contractual termination, and the consistent failed tests justified termination after notice and retesting.

Issues

  1. Whether the preferred ten-day period for sending samples to the laboratory was mandatory.
  2. Whether the criminal search-and-seizure procedure applied to contractual dealership termination.
  3. Whether failed samples and excess stock justified termination despite sludge in the dealer’s retained sample.

Held

Result

Appeal allowed. The High Court’s order was set aside, the dealer’s writ petition dismissed, and termination of the dealership upheld as valid and legal.

Judgment PDF: Supreme Court of India, [2019] 13 S.C.R. 1113.