aashish kumar singh (owner) 22 March 2016

Petrol pump dealership

Dear Concerned,

i had purchased a land on which a HPCL petrolpump was operational on the sellers Name, the seller was in desparate need of money as he needed it for his wife's medication he had sold the property to me on a condition that he will repurchase the land if HPCL has any problem with it paying me some extra amount once his funds are arranged and i agreed to it. to our surprise HPCL sent him a show cause notice to why his dealership should not be terminated with in 30 working days i.e. 12/12/2012. He expressed his problems in reply to the show cause notice and the the conditions mutually agreed between me and him without hiding any fact from the HPCL. thereafter the pump was running with no problem. again the company wrote a letter to the previous owner in april 2015 expressing its desire to extend the lease period by 10 years which was expiring in june2015. To this he replied stating that he is no more the legal ower of the premises so company should get the lease exted fom me as i am the legal owner and it was in company's knowledge since sep 2012. but to his shoch HPCL sent him a termination order with immideate effect on 1/7/15. i want to know that is there any possibilty to get the termination order cancelled and restart the pump. i am ready to give premises to hpcl on lease for the same with a condition that the Dealer should b the same and no other dealer should be allowed to operate the pump. i am also ready to indulge as a 49% partner if HPCL wants for the security of their lease. Please adivse what best can be done so that HPCL as well as the dealer can be in a win win situation. THANK YOU

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3 Replies

H.M.Patnaik (Proprietor) 22 March 2016

Dear Friend,

I am really at a loss to go through your posting as you taken a big financial decision without proper ground work. You must be aware that once a dealership is alotted by any public sector oil company like HPCL, it is not possible to change the dealership in any other name. You have rightly suggested regarding formation of a partnership firm with the actual dealer with 49% partnership basis with the objective of taking over the Assets & Liabilities of the said Petrol Pump. Then , you have to approach the HPCL authorities for transfer of the dealership in the name of the Partnership firm.In this case , there may be some hindrance from HPCL side , if the dealership agreement with HPCL explicitly bars transfer of title under any circumstances. You have to represent the matter before HPCL authority projecting some justifiable/ compelling circumstance like sudden physical incapacity of the dealer to look after day to day affairs of deficiency of working capital etc. .

G.L.N. Prasad (Retired employee.) 24 March 2016

Please search in google and find out Brochure for Selection of Dealers for Regular and Rural Retail outlets and also get a copy of dealership agreement.

Every thing depends on mutual understanding and your capacity in convincing officials.

G.L.N. Prasad (Retired employee.) 24 March 2016

Please search in google and find out Brochure for Selection of Dealers for Regular and Rural Retail outlets and also get a copy of dealership agreement.

Every thing depends on mutual understanding and your capacity in convincing officials.

I know in one case, the lessor/dealer has given an agreement to sell to the incoming dealer, only for dealership as per oral advice of PSU. . Later the dealer has filed a suit for specific performance and grabbed the petrol bunk. As lessor is receiving lease rent for 34 years (outstation) he is not aware of such expartee decree and specific performance sale deed executed by Court. Only after death of lessor, his family came to know of the entire episode. The dealer that committed the fraud is none other than the lessor's own father in law.