Anmol Solvex Pvt. Ltd. And Ors. vs Union Of India (Uoi) And Ors.
2000 Latest Caselaw 1190 Del

JUDGMENT

Manmohan Sarin, J.

1. Rule.

With the consent of the parties, writ petition is taken up for disposal.

2. Petitioners are aggrieved by the impugned condition, referred to as "Condition H" in the undertaking given by the petitioners. It would be useful to reproduce the said "Clause H" of the undertaking:-

"The Company agrees that with a view to ensuring that the finished products said to have been despatched to their various customers as detailed in Monthly Utilisation report have been received by them, the Corporation would be at liberty to seek a written confirmation from any or all customers of the said company with regards to receipt of finished product quantities by them. The said company further agrees that in the event non-receipt of the necessary confirmation from the respective customer/s of the said company within 15 days from the date of despatch of such letter by the Corporation, it would be construed that the finished products quantities said to have been despatched, have not been received by the customers. In such an event, further release of Naphtha to the said company would be suspended by the Corporation till such time the written confirmation is received by the Corporation and such decision would be binding on the said Company."

3. Petitiphers are manufacturers of Solvents utilizing Naphtha, which is supplied by the Indian Oil Corporation. It is common ground that there have been reports of large scale adulteration by for use of Naphtha, for adulteration of petrol. Learned counsel for the respondent submits that Clause H, had, therefore, become essential to be incorporated in the undertaking, with a view to ensure that Naphtha is utilised for the purpose for which it is supplied to the petitioners and the product manufactured by them i.e. Solvents are given to the end user and not used for adulteration of fuel.

4. Learned Senior counsel for the petitioner on the other hand submitted that Condition H, as given, was highly onerous, impracticable and was not functional at all. It would put the petitioner to a severe dis-advantage and they would be left with whims and caprices of their customers. Any customer, who has any dispute with the petitioner, would not grant certificate within 15 days, regarding receipt of the goods supplied, resulting in petitioners' supplies being suspended. Petitioners would be left at the mercy of unscrupulous customers. It could cause extreme hardship even if on account of postal delays confirmation was not received.

5. Learned counsel for the respondent submits that barring the petitioners there are others in the industry, who have duly accepted the procedure and requirement of confirmation in terms of Clause H. In fact even some of the petitioners had been furnishing such a confirmation.

6. It cannot be disputed that Condition H as at present could cause severe hardship to the petitioners and others in case any of their customer having strained relations with them or wanting to exploit situation. Upon hearing the counsel for the parties on this aspect and also on how the said provision could be made workable without causing any prejudice or injustice to any side and yet achieving the objective of preventing adulteration of petrol, the following procedure commends to the Court, which incorporates the suggestions and concerns expressed during arguments:-

(1) In case the respondents do not receive the confirmation from the customer of having received the goods, they shall duly notify the concerned petitioner of the same. Petitioner shall, within ten days of receipt of such intimation, furnish to the respondents.

(i) the documents evidencing the placement of order for the product placed by the customer. .

(ii) GR consignments evidencing the shipment and supply.

(iii) Proof of delivery by means of signed delivery challans by the customer.

(iv) Copy of the invoice and payment, if any received.

(v) Respondents thereupon shall duly consider these documents, as furnished, and seek any further clarification, if required, from the concerned petitioner. Respondents shall also be free to independently verify the factum of delivery of the product to the customer. In case the respondents are of the view that the supplies have not been made, as contended by the petitioners or its members, they may issue a show cause notice to the petitioner. In the event of the petitioner, not responding or reply not being found satisfactory, respondents shall be entitled to and at liberty to suspend or cancel the supplies, for reasons to be recorded.

The aforesaid procedure would apply in supplementing Clause H. The writ petition stands disposed of in the above terms.