Suspension of dealership for an offence being tried by a court.
Md Abdul Kadher
(Querist) 28 September 2012
This query is : Resolved
One individual got an Indane distributorship as sole proprietorship concern in 1996. The Indian Oil Corporation Ltd. has given instructions regarding partnership while applying LPG distributorship that each partner should submit an application form giving requisite indication that it is a partnership application. In March, 2012 he has committed a criminal offense regarding the booking & delivery of LPG cylinder and FIR has been filed against him in September, 2012. When complaint was filed by the affected person the individual dealer was mentioned as respondent as his wife was not a partner at that time. Meanwhile (in between March to August, 2012) he made the distributorship as a partnership concern by taking his wife as a partner with an aim to run the distributorship by his wife, in his absence if he is taken into custody. He had done this for not loosing the distributorship for his criminal offense. The Indian Oil Corporation Ltd. mentioned in the application for distributorship that the candidate convicted/being tried for any criminal offense involving moral turpitude and/or economic offense and against whom charges have been framed by the court would not be eligible for distributorship. The Indian Oil Corporation Ltd. has confirmed that Mrs. & Mr. xxx of M/s. xxx Gas Agency have committed the offense.
Whether the Indian Oil Corporation Ltd. is bound to suspend the distributorship for the criminal offense committed by one partner who included his wife as a partner after the offense took place?
ajay sethi
(Expert) 28 September 2012
yes indian oil corporation would susoend the delaer . at the time of commission of offence he was running the agency as sole proprietor . subsequently converted into partnership to avoid losing dealership .under terms of appointment it is specifically provided that if he is being tried for for any criminal offence would not be eligible .
