M/S. HINDUSTAN PETROLEUM CORPN. LTD. & ORS. versus M/S. SUPER HIGHWAY SERVICES & ANR.

M/S. HINDUSTAN PETROLEUM CORPN. LTD. & ORS. versus M/S. SUPER HIGHWAY SERVICES & ANR.

The termination of the dealership agreement was arbitrary and unlawful because there was no admissible evidence of valid service of prior notice of the laboratory test required by the Marketing Discipline Guidelines, causing severe prejudice to the dealer and violating principles of natural justice; the arbitration clause could not be invoked belatedly as it was not raised before the High Court and filing appeal submitted the petitioner to the writ court's jurisdiction.

Parties
Petitioner: M/S. HINDUSTAN PETROLEUM CORPN. LTD. & ORS.; Respondent: MIS. SUPER HIGHWAY SERVICES; Respondent: ANR.
Jurisdiction
India
Judgment Date
19 February 2010
Procedural Posture
Special Leave Petition (c) No.104 of 2009 / Special Leave Petition Before the Supreme Court; SLP Dismissed
Outcome
Special Leave Petition dismissed; High Court order allowing the writ petition upheld
Legal Topics
Dealership Agreement Termination, Marker Test/laboratory Testing, Service of Notice, Writ Jurisdiction, Arbitrability, Procedural Fairness
Contract Administrative Law Constitutional Law Arbitration Natural Justice Dealership Agreement Termination Marker Test/laboratory Testing Service of Notice +3 more

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Parties

M/S. HINDUSTAN PETROLEUM CORPN. LTD. & ORS.

Petitioner

MIS. SUPER HIGHWAY SERVICES

Respondent

ANR.

Respondent

Procedural Posture

Special Leave Petition (c) No.104 of 2009 / Special Leave Petition Before the Supreme Court; SLP Dismissed

Legal Issues

  1. 1 Whether termination of dealership agreement was validly effected on the basis of laboratory Marker Test sample results
  2. 2 Whether notice of the laboratory test was validly served on the dealer and whether failure to serve notice violated principles of natural justice
  3. 3 Whether the arbitration clause in the dealership agreement barred invocation of writ jurisdiction before the High Court

Ratio Decidendi

The termination of the dealership agreement was arbitrary and unlawful because there was no admissible evidence of valid service of prior notice of the laboratory test required by the Marketing Discipline Guidelines, causing severe prejudice to the dealer and violating principles of natural justice; the arbitration clause could not be invoked belatedly as it was not raised before the High Court and filing appeal submitted the petitioner to the writ court's jurisdiction.

Court Disposition

Special Leave Petition dismissed; High Court order allowing the writ petition upheld

Orders

  • Special Leave Petition dismissed
  • High Court order allowing the writ petition is upheld