Fresh Review of Termination Decision by Indian Oil Corporation Limited in LPG Distributorship: P&H HC

In a recent ruling, the High Court of Punjab and Haryana at Chandigarh has ordered a fresh review of the termination decision taken by Indian Oil Corporation Limited (IOCL) in a case involving the termination of LPG Distributorship. The judgment was delivered by Hon’ble Mr. Justice Jagmohan Bansal on 19^th July 2023.

The petitioner, Suman Sheoran Alias Suman Chahal, had approached the High Court seeking the setting aside of the termination order dated 30^th June 2022 (Annexure P-5) by IOCL, which resulted in the termination of her LPG Distributorship.

The case revolved around allegations raised against the petitioner, including claims of her involvement in an “agreement to sell” with her mother-in-law and unauthorized foreign visits, among others. The petitioner vehemently denied these allegations, stating that the alleged documents were forged and that she had never entered into any agreement to sell. She also provided evidence that her foreign visits were authorized and that she had delivered motivational lectures without remuneration.

During the hearing, Mr. Ranjit Singh Kalra, Advocate for the petitioner, argued that the impugned order lacked specific findings on the allegations and failed to examine the evidence properly. On the other hand, Mr. Ashish Kapoor, Advocate for the respondents-corporation, defended the termination decision, stating that it was made within the terms of the contract, which allowed termination with 30 days’ notice.

After hearing the arguments from both sides, the Hon’ble Mr. Justice Jagmohan Bansal issued the verdict. The court directed IOCL to pass a fresh order within two months, allowing the petitioner an opportunity of hearing and considering all documents on record. The corporation was instructed to address all the issues raised in the show cause notice and the petitioner’s reply before making a final decision on the termination.

The judgment further clarified that the court’s observations should not be seen as expressing an opinion on the merits of the case. The respondent-authority was advised to proceed with the new review in accordance with the law, without being influenced by the court’s observations.

This ruling marks a significant development in the case, giving the petitioner another chance to present her case and defend her LPG Distributorship. The fresh review is expected to bring clarity to the matter and ensure a fair and just decision in accordance with the law.

 Date of Decision: 19th July 2023

Suman Sheoran Alias Suman Chahal  vs Indian Oil Corporation Limited and Others 

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