In Brief
Indian Oil Corporation terminated a fuel dealer's dealership following inspections that revealed breaches of the dealership agreement. The dealer invoked arbitration; the arbitrator upheld the breaches but granted liberty to apply for reconsideration. The IOC rejected the dealer's representation. The High Court's Single Judge dismissed the dealer's writ petition. A Division Bench reversed this, directing dealership restoration. The Supreme Court allowed IOC's appeal, holding that the arbitral award did not set aside the termination, merely granted liberty to seek reconsideration. The IOC's subsequent rejection of the representation was an independent administrative decision wholly within the IOC's discretion and involved no arbitrariness warranting writ review. The Single Judge's decision was restored.
The lawyer headnote and full judgment text are available to registered users.