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Supreme Court of India 2018-07-17 allowed

Indian Oil Corporation Ltd. & Anr vs T. Natarajan

Bench: 2 — Abhay Manohar Sapre

In Brief

The Indian Oil Corporation appointed the respondent as a retail petrol pump dealer under a dealership agreement. In 2008, inspections revealed equipment tampering (broken totalizer seal), leading IOC to terminate the dealership in 2009. The respondent arbitrated the dispute. The arbitral award found breaches proved but granted liberty for him to request reconsideration. The Single Judge upheld the award. The respondent's subsequent representation for restoration was rejected by IOC. The Division Bench's mandamus to restore dealership was overturned by the Supreme Court, which held that the award merely granted procedural liberty, not relief; the IOC's discretionary decision on reconsideration was final and non-reviewable absent arbitrariness.

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Arbitration and Conciliation Administrative Law Writ Jurisdiction Dealership Agreements Discretionary Powers of Principal Judicial Review

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