In Brief
The Indian Oil Corporation Limited (IOCL) refused to renew a kerosene dealership with M/s Shree Niwas after one partner died, claiming that not all legal heirs had joined the reconstituted firm. The High Court issued a mandamus directing IOCL to continue supplying kerosene until proper reconstitution occurred. IOCL challenged this via special leave petition. The Supreme Court upheld the High Court's order, holding that a multi-partner firm does not dissolve on a partner's death if the partnership deed permits continuation. The IOCL's own guidelines allowed reconstitution with surviving partners and willing heirs—not mandatorily all heirs. Since the dealership was never terminated, IOCL could not arbitrarily halt supplies. The Court held that state authorities must act fairly and in consumers' interests, not with technical rigidity.
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