INDIAN OIL CORPORATION LTD. versus AMRITSAR GAS SERVICE AND ORS.

INDIAN OIL CORPORATION LTD. versus AMRITSAR GAS SERVICE AND ORS.

Where a contract is determinable or revocable, and is for personal service, only compensation for notice period is permissible; restoration of contract cannot be granted under Section 14(1) of the Specific Relief Act. If arbitrator refuses to consider counter-claim when all disputes are referred, it is an error of...

Source-derived case information.

Parties
Appellant: Indian Oil Corporation Ltd.; Respondent No. 1: Amritsar Gas Service; Appellant's Counsel: R. Shakdhar; Appellant's Counsel: S. Singhi; Appellant's Counsel: Ms. P. Shroff; Appellant's Counsel: S.S. Shroff; Appellant's Counsel: R. Sasiprabhu; Appellant's Counsel: Ms. Suruchi Aggarwal; Respondents' Counsel: N.K. Agarwal
Jurisdiction
India
Judgment Date
19 November 1990
Procedural Posture
Civil Appeal / Appeal Against High Court Revision; Award Referred to Supreme Court Appointed Arbitrator; Supreme Court Review of Arbitral Award
Outcome
Appeal partly allowed. Award modified.
Legal Topics
Termination of Distributorship, Objections to Arbitral Award, Compensation for Notice Period, Specific Enforceability of Contracts, Error of Law Apparent in Arbitral Award
Arbitration Contract Law Specific Relief Termination of Distributorship Objections to Arbitral Award Compensation for Notice Period Specific Enforceability of Contracts Error of Law Apparent in Arbitral Award

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Parties

Indian Oil Corporation Ltd.

Appellant

Amritsar Gas Service

Respondent No. 1

R. Shakdhar

Appellant's Counsel

S. Singhi

Appellant's Counsel

Ms. P. Shroff

Appellant's Counsel

S.S. Shroff

Appellant's Counsel

R. Sasiprabhu

Appellant's Counsel

Ms. Suruchi Aggarwal

Appellant's Counsel

N.K. Agarwal

Respondents' Counsel

Procedural Posture

Civil Appeal / Appeal Against High Court Revision; Award Referred to Supreme Court Appointed Arbitrator; Supreme Court Review of Arbitral Award

Legal Issues

  1. 1 Was termination of the distributorship agreement valid?
  2. 2 Was the award granting restoration of distributorship sustainable under Specific Relief Act?
  3. 3 Was refusal to consider counter-claim by arbitrator correct?

Ratio Decidendi

Where a contract is determinable or revocable, and is for personal service, only compensation for notice period is permissible; restoration of contract cannot be granted under Section 14(1) of the Specific Relief Act. If arbitrator refuses to consider counter-claim when all disputes are referred, it is an error of law apparent on the face of the award.

Court Disposition

Appeal partly allowed. Award modified.

Orders

  • Plaintiff-respondent No. 1 entitled to compensation for loss of earnings for notice period of thirty days from notice dated 11.3.1983
  • Refund of amounts of two demand drafts for Rs.15,580.83 each dated 8.3.1983 and 11.3.1983