Read Time: 05 minutes

Synopsis

The Supreme Court has underscored that the top court is not only a court of law but a court of equity as well. It dismissed a plea by the Indian Oil Corporation Ltd against an order cancelling the termination of the dealership of a retail outlet.

A bench of Justices C T Ravikumar and Rajesh Bindal said that it was not inclined to entertain the Special Leave Petition in exercise of power under Article 136 of the Constitution of India. 

In the matter, Indian Oil Corporation and others assailed the order of January 19, 2024, passed by the Allahabad High Court.

The high court set aside the order of August 1, 2022 terminating the dealership of M/s Mitai Filling Station and others.

Alleging fabrication of equipments and short supply and such other irregularities, a show cause notice was issued to the filling station on October 28, 2009, as to why the dealership should not be terminated. 

The dealer filed a suit in a Hathras court and obtained an interim injunction on termination of dealership on March 8, 2010. Later, the suit was withdrawn in the year 2022. 

Subsequently, Indian Oil issued an order on August 1, 2022 terminating the dealership to run the retail outlet. 

The dealer challenged the said termination order, which culminated into the high court's judgment. 

After having heard the appellant's counsel, the bench noted the circumstances, specifically referred to in the high court's judgment which would reveal that relief was granted on "equitable considerations".

The high court found that incident in question occurred about 13 years ago and the dealer had suffered sufficiently as the dealership was suspended in 2009 and it was revived only in the year 2011. 

In its order, the Apex Court said, "We could not find any manifest injustice in adopting such a course in the circumstances". 

The bench cited the 'Chandra Singh Vs State of Bihar' (1984) in which the top court held that the Supreme Court is not only a court of law but a court of equity as well. 

In this connection, the bench found it relevant to refer the observation in 'Indian Oil Corporation Vs State of Bihar & Ors' (1986).

The top court had then said, “It is not the policy of this court to entertain special leave petition and grant leave under Article 136 of the Constitution save in those cases where some substantial questions of law of general or public importance is involved or there is manifest injustice resulting from the impugned order or judgment.”

"In our opinion, what was stated in the 1986 case applies to this case in view of the factual position obtained," the bench said, dismissing the present petition.

Case Title: Mitai Filling Station & Ors