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M/S Jay Shree Tea And Industry Limited vs The Indian Oil Corporation Limited
2024 Latest Caselaw 5178 Patna

Citation : 2024 Latest Caselaw 5178 Patna
Judgement Date : 2 August, 2024

Patna High Court

M/S Jay Shree Tea And Industry Limited vs The Indian Oil Corporation Limited on 2 August, 2024

Author: Chief Justice

Bench: Chief Justice

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                            REQUEST CASE No.69 of 2024
     ======================================================
     M/s Jay Shree Tea and Industry Limited proprietor of Majhaulia Sugar
     Industries, having its registered office and head office at Industry House, 15th
     Floor, 10 Chemic street Calcutta - 700017 and the Mill is situated in the
     District of West Champaran, Bihar - 845454 represented through its Deputy
     General Manager (Commercial), namely Upendra Nath Rai, Gender- Male,
     aged about 61 years S/o Late Chandrika Rai, R/o New Bajrang Nagar,
     Ratanpura Ojha Toli, Chapra, Saran, Bihar-843101.

                                                                   ... ... Petitioner/s

                                         Versus

1.   The Indian Oil Corporation Limited, G-9, Ali Yavar Jung Marg, Bandra
     (East), Mumbai- 400 051 represented through its Chairman cum Managing
     Director.
2.   The Chief General Manager (Operations), Indian Oil Corporation Limited,
     Bihar State Office, Lok Nayak Jaiprakash Bhawan, 5th Floor, Dakbunglow
     Road, Patna- 800001.
3.   The Depot Manager, Indian Oil Corporation Limited, Sipara, Patna-800002.
4.   The Depot Manager, Indian Oil Corporation Limited, Barauni-851210.

                                                                ... ... Respondent/s

     ======================================================
     Appearance :
     For the Petitioner/s   :       Mr. Ramesh Kumar Agrawal, Advocate
     For the Respondent/s   :       Mr. Sanat Kumar Mishra, Advocate
     ======================================================
     CORAM: HONOURABLE THE CHIEF JUSTICE
     ORAL JUDGMENT

Date : 02-08-2024

The petitioner is seeking arbitration to decide the

claim of waiver of penalty, on the ground of flood in the

reserve area from which raw material was procured.

2. The learned Counsel for the respondent clearly

points out from the agreement, where there is Standard

Operating Procedure for waiver of penalty, to be followed by Patna High Court REQ. CASE No.69 of 2024 dt.02-08-2024

Oil Marketing Companies (OMC's). We specifically refer to

serial no. 8, which is extracted hereunder:-

3. The learned Counsel for the respondent further

submits that if the three certificates are produced they would

definitely consider the waiver. In such circumstances, this

Court is of the opinion that at this point there is no need for

appointing an Arbitrator. The petitioner would be entitled to

produce the certificates, which are following:-

I. Notarized affidavit stating floods/heavy rain/cyclone as reason for non- operation with period.

II. Certification from the concerned Unit Exice distillery officer- stating non-period of operation due to floods/heavy rain/cyclone. Patna High Court REQ. CASE No.69 of 2024 dt.02-08-2024

III. Reports from local authorities /Letter from local authorities stating floods/heavy rain/cyclone during the period of non-operation.

4. The learned Counsel for the petitioner submits

that already there was an order by Annexure-11, which

specifically looked at the requirements to be complied with as

spoken by the learned Counsel for the respondent and a

certificate to be produced before the Authority.

5. Annexure-13 is the order passed based on the

aforesaid directions in Annexure-11. The required certificates

were not produced.

6. This Court does not find any certificate as

required under the extract above referred produced before this

Court also. In such circumstances, the petitioner would be

entitled to produce the above certificates before the Authority

and claim waiver. If, despite the certificates, the waiver is not

granted, the petitioner could even seek for arbitration.

7. The petitioner also has a case that the flooding

did not affect his factory but the reserves from which the raw

materials were sourced. Hence, the certificates for such

flooding of reserves ought to be produced, which also would

fall within the ambit of waiver, even according to the Patna High Court REQ. CASE No.69 of 2024 dt.02-08-2024

respondent.

8. The request case stands closed.

(K. Vinod Chandran, CJ) aditya/-

AFR/NAFR
CAV DATE
Uploading Date          05.08.2024.
Transmission Date
 

 
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