Y.SARATH BABU (ADVOCATE) 02 April 2010

Dealership agreement termination

hello to all the members,

My friend is petrol bank dealer of Indian Oil Corporation they have entered agreement with my friend for 4 years i.e. in the year 2009. Suddenly they have sent a notice that the agreement is terminated and the reason is company policy. at the same time they filed caveat in the local court. in agreement also mentioned that one month notice period for termination. my friend was spend a large amount for petrol bank. the agreement is completed one year only.

Please sugges in this regard.

Thanking you.

Reply Follow

4 Replies

Vinod kashyap (Advocate & Legal advisor) 02 April 2010

if 1 month prior notice given by company they can terminated agreement. if agreement terminated without notice you should file suit for specific performance. Caveat only provide right of hearing before grant any interim injuction. why you hasitate.

Gundlapallis (Advocate) 03 April 2010

Company's policies cannot change abruptly after commiting long term agreements - if your client has not violated any of the terms and conditions of the agreement, just a change of company's policy can no way affect him - he can claim for damages. Issue a legal notice first.

Vinod kashyap (Advocate & Legal advisor) 03 April 2010

absolutely right

asheesh (Other) 01 May 2011

Hi,

My friend has owned an IOCL petrol pump in UP for last more than 20 yrs along with a partner (50-50%). Due to some differences between the both partners, the pump is not in running stage since Jan 2010. Both of the partners are neither willing to run together anymore nor want to get out from the partnership after taking a lump-sum amount. That is the reason IOCL has not resumed the supply and waiting for the partners to get their issues resolved. However IOCL has not given any notice to the firm as of now.

Assuming the above scenario, my questions are:

(1) In which circumstances, IOCL can terminate the dealership ?

(2) In which circumstances, IOCL can resume the supply ?

(3) Is it possible, in any way, that any of the partners can run the petrol pump without taking other's consent BUT taking IOCL in confidence ?

(4) What are the other ways of smooth running of the petrol pump ?

Please answer above questions. Point wise answers will be much appreciated.

Thanks in Advance