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M/s. Citizen Auto Service, Represented by Partner N. Sirajudeen v/s M/s. Indian Oil Corporation Ltd., Represented by its General Manager & Another


Company & Directors' Information:- E R AUTO PRIVATE LIMITED [Active] CIN = U34300HR2002PTC035002

Company & Directors' Information:- K Y AUTO PRIVATE LIMITED [Active] CIN = U50300JK2013PTC003849

Company & Directors' Information:- J. S. B. AUTO PRIVATE LIMITED [Active] CIN = U50300DL2010PTC198144

Company & Directors' Information:- T & R AUTO PRIVATE LIMITED [Active] CIN = U50200TG2012PTC082553

Company & Directors' Information:- D R D B AUTO PRIVATE LIMITED [Strike Off] CIN = U74899DL1988PTC032028

Company & Directors' Information:- A-1 AUTO PVT. LTD [Active] CIN = U51502MH2006PTC165934

Company & Directors' Information:- AUTO INDIA PRIVATE LIMITED [Active] CIN = U65991TN1984PTC010923

Company & Directors' Information:- Z-AUTO PRIVATE LIMITED [Active] CIN = U50500UP2021FTC153664

Company & Directors' Information:- K V AUTO LTD [Strike Off] CIN = U28932PB1994PLC014522

Company & Directors' Information:- K G N AUTO PRIVATE LIMITED [Active] CIN = U74900PN2015PTC157675

Company & Directors' Information:- J. S. AUTO PRIVATE LIMITED [Active] CIN = U34102UP1986PTC008173

Company & Directors' Information:- P S AUTO PRIVATE LIMITED [Active] CIN = U34300MH1999PTC120052

Company & Directors' Information:- P M C AUTO LIMITED [Strike Off] CIN = U34300DL1995PLC071849

Company & Directors' Information:- B C C AUTO PVT LTD [Active] CIN = U74899DL1992PTC051439

Company & Directors' Information:- H H AUTO PRIVATE LIMITED [Amalgamated] CIN = U34100DL2009PTC192880

Company & Directors' Information:- M M AUTO PRIVATE LIMITED [Strike Off] CIN = U50300UP1988PTC009527

Company & Directors' Information:- G B AUTO PRIVATE LIMITED [Strike Off] CIN = U50400MH1998PTC114977

Company & Directors' Information:- M C AUTO PVT LTD [Under Process of Striking Off] CIN = U34300DL1977PTC008716

Company & Directors' Information:- E N B AUTO (INDIA) PRIVATE LIMITED [Active] CIN = U34300PB1988PTC008040

Company & Directors' Information:- K D R AUTO PRIVATE LIMITED [Active] CIN = U34300DL2005PTC132732

Company & Directors' Information:- K S R AUTO PRIVATE LIMITED [Active] CIN = U34300PN2011PTC140367

Company & Directors' Information:- J P AUTO PVT LTD [Strike Off] CIN = U50402WB1991PTC052147

Company & Directors' Information:- E G AUTO PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1987PTC027016

Company & Directors' Information:- R AND H AUTO INDIA PVT LTD [Active] CIN = U74899DL1982PTC013349

Company & Directors' Information:- D D AUTO PRIVATE LIMITED [Active] CIN = U74899DL1985PTC022306

Company & Directors' Information:- C R AUTO PRIVATE LIMITED [Strike Off] CIN = U34300PB1997PTC020137

Company & Directors' Information:- B S K AUTO PRIVATE LIMITED [Strike Off] CIN = U29246PB1997PTC020704

Company & Directors' Information:- K AND K AUTO PRIVATE LIMITED [Active] CIN = U29199TZ1996PTC007431

Company & Directors' Information:- J K M AUTO PRIVATE LIMITED [Strike Off] CIN = U34300DL2005PTC143914

Company & Directors' Information:- K AND K AUTO PRIVATE LIMITED [Not available for efiling] CIN = U34300DL1988PTC032426

Company & Directors' Information:- H B AUTO (INDIA) PRIVATE LIMITED [Active] CIN = U50401OR1988PTC002075

Company & Directors' Information:- S B G AUTO PRIVATE LIMITED [Strike Off] CIN = U50101MH2006PTC158566

Company & Directors' Information:- O P AUTO PRIVATE LIMITED [Active] CIN = U51103DL2008PTC181391

Company & Directors' Information:- D K S AUTO PVT LTD [Strike Off] CIN = U34300DL2001PTC111465

Company & Directors' Information:- C L K AUTO PRIVATE LIMITED [Strike Off] CIN = U34300DL2003PTC118551

Company & Directors' Information:- K B H AUTO PRIVATE LIMITED [Strike Off] CIN = U74899DL2000PTC107258

Company & Directors' Information:- GENERAL OIL COMPANY PRIVATE LIMITED [Dissolved] CIN = U15144KL1951PTC000411

Company & Directors' Information:- AUTO SERVICE LTD. [Dissolved] CIN = U99999MH1922PTC001007

Company & Directors' Information:- AUTO INDIA LIMITED [Not available for efiling] CIN = U99999MH1948PLC006176

Company & Directors' Information:- R K AUTO INDIA PVT LTD [Strike Off] CIN = U99999DL2000PTC901836

    S.A. No. 2270 of 2004

    Decided On, 16 July 2018

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE T. RAVINDRAN

    For the Appellant: R. Sivaraman for M/s. R. Govindaraj, Advocates. For the Respondents: Anantha Natarajan, Advocate.



Judgment Text

(Prayer: Second Appeal filed under Section 100 of C.P.C., against the judgment and Decree dated 31.10.2003 made in A.S.No.9 of 2003 on the file of Subordinate Judge, Pollachi, in reversing the judgment and decree dated 06.01.2003 made in O.S.No.1051 of 1997 on the file of the District Munsif, Pollachi.)

1. Challenge in this Second Appeal is made to the judgment and decree dated 31.10.2003 passed in A.S.No.9 of 2003 on the file of the Subordinate Court, Pollachi reversing the judgment and decree dated 06.01.2003 passed in O.S.No.1051 of 1997 on the file of the District Munsif Court, Pollachi.

2. The Second Appeal has been admitted on the following substantial question of law.

Whether the lower appellate court is correct in law is holding that the show cause notice dated 24.02.1997 and the order of termination dated 13.10.1997 are valid?

3. The suit has been laid by the plaintiff for declaration and permanent injunction.

4. Considering the scope of controversy between the parties in respect of the lis lying in a narrow compass, I deem it unnecessary to dwell into the facts of the case in detail.

5. Materials placed on record go to show that the defendant Oil Corporation is having the retail outlet in the suit property and the dealership was originally given to Srinivasan.

6. Further it is also found that thereafter three more partners had been included by Srinivasan for running the retail outlet. It is not in dispute that the dealers have to run the outlet in accordance with the agreement entered into with the defendant Oil Corporation and it is also not in dispute that no new partner could be inducted by the dealers without the consent of the defendant Oil Corporation and not in dispute that the dealers should not act contrary to the terms contained in the agreement. However, considering the materials placed, it is found that even as spoken to P.W.1 Sirajudeen they had inducted one Sampath as a partner with reference to the dealership business and the same had not been duly intimated to the Registrar and also not even informed to the defendant Oil Corporation and thus it is found that without the express or implied consent of the defendant Oil Corporation, the new partner had been inducted into the dealership business and further the plaintiff has also not placed any material worth acceptance to show that a legal agreement had been entered into between Sampath and the existing partners as regards the dealership business. Accordingly, it is found that letters had been sent by the defendant Oil Corporation to the recognized dealers and also the dealers had been informed that if proper reply to the same is not forthcoming suitable action would be levied by the defendant Oil Corporation. Further, inasmuch as the dealers had not carried out the retail outlet business as per the terms of the agreement between the parties and also not procured the commodities of the defendant Oil Corporation and thus it is found that the defendant Oil Corporation had issued the order of termination of the dealership and in such view of the matter, it is found that when the plaintiff has been running the dealership business not in consonance with the terms of the agreement and on the other hand, when it is found that the plaintiff had been inducting new partner without the permission and consent of the defendant Oil Corporation and also not carried out the other terms of the agreement between the parties, accordingly, it is seen that the defendant Oil Corporation after issuing the show cause notice and even thereafter as the plaintiff had not performed their obligations as outlined in the agreement between the parties, accordingly, it is found that the defendant Oil Corporation had duly terminated the dealership of the plaintiff and thereby endeavored to recover the possession of the suit property from the plaintiff. In such view of the matter, it is found that on factual matrix, the first appellate court, on a correct appreciation of the materials placed on record, rightly found that the show cause notice sent by the defendant Oil Corporation dated 24.02.1997 and following the same, the termination notice sent by defendant Oil Corporation dated 13.10.1997 are found to be valid in law and accordingly it is found that the defendant Oil Corporation cannot be injuncted, when it is found that it had taken the legal recourse for taking the possession of the property from the plaintiff. It

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is found that the judgment and decree of the first appellate court, dismissing the plaintiff's suit based on correct reasonings and conclusions, do not warrant interference in any manner. The substantial questions of law formulated in the second appeal are accordingly answered against the plaintiff and in favour of the defendants. 7. In conclusion, the second appeal fails and is accordingly dismissed with costs. Consequently, connected miscellaneous petition, if any, is closed.
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