JUDGMENT : 1. Heard learned counsel appearing for the petitioner and learned counsel appearing for the respondents. 2. Petitioner through this writ petition has challenged the order dated 29.7.2017 passed by the Chief Divisional Retail Sales Manager, Indian Oil Corporation Ltd., Kanpur Divisional Office, Kanpur whereby petitioner’s retail outlet dealership and dealership agreement have been terminated with forfeiture of the security amount. 3. Facts of the case, in brief, are that petitioner was appointed as a dealer by the Indian Oil Corporation Ltd. and in the year 2007 a retail outlet was established in the name and style of M/s Maharashi Filling Station, Kulpahar, Mahoba Road, District Mahoba. A dealership agreement was executed in between the petitioner and the Indian Oil Corporation Ltd. on December 6, 2007 and thereafter petitioner started running the retail outlet. On May 6, 2017, inspection was carried out on the petitioner’s retail outlet by a team comprising of the officers of the District Administration, officers of the Indian Oil Corporation, police officers, officers of the Department of Weights and Measures, officers of the Department of Civil Supplies, OEM Midco Engineer and OEM Service Engineer, Gilbarco. In the inspection report following findings were recorded:- “1. There are three MPDs at the location (2x Midco and 1x Gilbarco). 2. In one MPD of Make Midco, Series: Surefill, Serial No.: 10DC0197V, Model: SFI2224ASHP 1, an addition fitting seem to be attached, hanging from the pulsar, cap number 10C3515E, when opened after the breaking of seal of pulsar, of Nozzle 2, of HSD, in presence of all team members. Dealer is present at the site. 3. Measures of all the operational nozzles were found within limits. Nozzle No. 1 of other Midco MPD is not operational, hence delivery could not be checked. 4. Pulsars for all nozzles at Retail Outlet have been checked. All pulsars, except the one mentioned in pt. 2, were found without any fitting or evidence of fittings. 5. All the nozzles, found within limits, have been stamped again, after receiving the government fee. 6. Supply inspector also found the stock variations within limits. 7. OEM Service engineers have also prepared reports for Midco and Gilbarco MPDs.” 4. In the inspection, OEM Service Engineer Midco had also prepared a report in which it was categorically mentioned that in the inspection, extra cable in the Pulsar, Assembly and I.C. has been found. 5. 6. Supply inspector also found the stock variations within limits. 7. OEM Service engineers have also prepared reports for Midco and Gilbarco MPDs.” 4. In the inspection, OEM Service Engineer Midco had also prepared a report in which it was categorically mentioned that in the inspection, extra cable in the Pulsar, Assembly and I.C. has been found. 5. On the basis of the inspection report dated 6.5.2017, a letter was issued on 15.5.2017 by the Indian Oil Corporation in respect of the fact finding inquiry and the petitioner was required to furnish its comments within seven days. In the letter dated 15.5.2017, it was mentioned that the additional fitting found in the inspection of the petitioner’s retail outlet violates Clause 5.1.4 of the Marketing Discipline Guidelines, 2012. Petitioner submitted comments on 30.5.2017 wherein he submitted that the Dispensing Unit Midco Make Surefill Serial No.10DC0197V, Model SFH2224ASHPI is the property of the Indian Oil Corporation and whenever any repairing etc. of the said unit is needed, that is done by the person authorized by the Indian Oil Corporation. The last repair was carried out on 23.9.2016 by the authorized person and thereafter unit was sealed. In the inspection held on 6.5.2017 seal of the aforesaid dispensing unit was found intact and therefore, petitioner cannot be held responsible for any additional attachment found inside the dispensing unit. 6. The Chief Divisional Retail Sales Manager, Indian Oil Corporation Ltd., Kanpur Divisional Office, Kanpur issued a show cause notice on 12.6.2017 whereby petitioner was called upon to show cause within 15 days of the receipt of the notice, as to why action may not be taken for the breach of the terms and conditions of the dealership agreement and for causing prejudice to the interest and good name of the Corporation. 7. Petitioner submitted reply to the aforesaid show cause notice on July 6, 2017 but without considering the said reply, the Chief Divisional Retail Sales Manager, Indian Oil Corporation Ltd. Kanpur Divisional Office, Kanpur passed an order on 4.7.2017 whereby petitioner’s retail outlet dealership and dealership agreement were terminated with immediate effect and security amount was also forfeited. 8. 7. Petitioner submitted reply to the aforesaid show cause notice on July 6, 2017 but without considering the said reply, the Chief Divisional Retail Sales Manager, Indian Oil Corporation Ltd. Kanpur Divisional Office, Kanpur passed an order on 4.7.2017 whereby petitioner’s retail outlet dealership and dealership agreement were terminated with immediate effect and security amount was also forfeited. 8. Petitioner challenged the order dated 4.7.2017 by filing Writ-C No.31029 of 2017 which was finally disposed of by the Division Bench of this Court vide order dated 18.7.2017 whereby respondents were directed to pass fresh order after taking into consideration the reply submitted by the petitioner to the show cause notice dated 12.6.2017. 9. The Chief Divisional Retail Sales Manager, Indian Oil Corporation Ltd., Kanpur Divisional Office, Kanpur has passed the impugned order dated 29.7.2017 whereby in view of Clause 15, 16 and 43 read with Clause 56 of the dealership agreement dated 6.12.2007, the retail outlet dealership and dealership agreement have been terminated with immediate effect and security amount deposited by the petitioner has also been forfeited. 10. Learned counsel appearing for the petitioner has submitted that the dispensing unit installed at the retail outlet dealership of the petitioner is property of the Indian Oil Corporation and whenever there is need for any repair in the dispensing unit, same is done by a person authorized by the Indian Oil Corporation. It has further been submitted that on a complaint made by the petitioner, a person authorized by the Indian Oil Corporation carried out the repairing work in the Dispensing Unit Midco Make Surefill Serial No.10DC0197V, Model SFH2224ASHPI in the year 2016 and thereafter the entire unit was sealed and once in the inspection carried out on 6.5.2017 seal of the said unit was found intact, petitioner cannot be held responsible for any additional fitting found inside the dispensing unit. 11. 11. Learned counsel appearing for the petitioner has argued that the Indian Oil Corporation while issuing letter dated 15.5.2017 requiring comments of the petitioner for fact finding inquiry, categorically stated that further action as per terms and conditions of the dealership agreement shall be taken after receipt of the report on additional fitting from OEM vendor but without waiting for the said report, the impugned order dated 29.7.2017 has been passed whereby the retail outlet dealership and dealership agreement have been terminated therefore, it is patently manifest that the impugned order dated 29.7.2017 is unsustainable in the eyes of law. 12. Learned counsel appearing for the petitioner has also argued that in the inspection dated 6.5.2017, Pulsar Assembly and Cap No.10C3515E was removed from the dispensing unit and was sealed and was sent by the police to Midco Company for its testing and after receipt of the test report, in the criminal case statement of the Engineer under Section 161 Cr.P.C. was recorded and on that basis, final report was filed in the criminal case which has been ultimately accepted by the court concerned. Counsel submitted that once on the basis of the report submitted by the Midco Company dated 9.12.2017 petitioner has been exonerated from the criminal charges, then the impugned order dated 29.7.2017 cannot be allowed to sustain. 13. Learned counsel appearing for the respondents has submitted that inspection of the petitioner’s retail outlet dealership was carried out on 6.5.2017 in presence of Sri Ganesh Tiwari, OEM, Midco and he in his inspection report has categorically stated that an additional fitting has been found in one MPD, Make Midco, Series Surefill, Serial No.10DC0197V, Model SFH2224ASHPI and on the basis of the said report, a show cause notice was issued to the petitioner and thereafter reply submitted by the petitioner has been considered and it has been found that petitioner has violated Clause 15, 16 and 43 read with Clause 56 of the retail outlet dealership agreement dated 6.12.2007. Therefore, the retail outlet dealership and the dealership agreement have been terminated vide impugned order dated 29.7.2017. 14. Learned counsel appearing for the respondents has argued that the dispensing unit was in the custody of the petitioner therefore, additional fitting found in the dispensing unit could not have been inserted without the consent and involvement of the petitioner. Therefore, the retail outlet dealership and the dealership agreement have been terminated vide impugned order dated 29.7.2017. 14. Learned counsel appearing for the respondents has argued that the dispensing unit was in the custody of the petitioner therefore, additional fitting found in the dispensing unit could not have been inserted without the consent and involvement of the petitioner. Hence, it was obligatory on him to explain as to how additional fitting was lying inside the machine but as the petitioner failed to explain the same, accordingly, the impugned order dated 29.7.2017 is justified. Learned counsel appearing for the respondents has further argued that so far as the report dated 9.12.2017 given by the Midco Company is concerned, that also shows that additional solder mark has been found at S1A and S1P location on Pulsar PCB and also additional solder mark has been found on C4 capacitor lead. In the said report, it has also been recorded that Pulsar Assembly has not been found in confirmity with Midco standard design as per visual inspection test. In such a case, if the said report is taken into account, it can be safely inferred that an additional fitting was made in the dispensing unit, and therefore, there is neither any infirmity nor any illegality in the impugned order dated 29.7.2017. 15. We have considered the arguments advanced by the learned counsels appearing for the parties. 16. Clause 5.1.4 of the Marketing Discipline Guidelines, 2012 is extracted as under:- “5.1.4 ADDITIONAL/UNAUTHORISED FITTINGS/GEARS FOUND IN DISPENSING UNITS/TAMPERING WITH DISPENSING UNIT Any mechanism/fittings/gear found fitted in the dispensing unit with the intention of manipulating the delivery. Removal, replacement/manipulation of any part of the Dispensing Unit including microprocessor chip/electronic parts/ OEM software will be deemed as tampering of the dispensing unit. In case of this irregularity sales from the concerned dispensing unit to be suspended, DU sealed. Samples to be drawn of all the products and send to lab for testing.” 17. Clause 15, 16, 43, 56 and 57 to 61 of retail outlet dealership agreement executed in between the petitioner and the Indian Oil Corporation are extracted as under:- “15. In case of this irregularity sales from the concerned dispensing unit to be suspended, DU sealed. Samples to be drawn of all the products and send to lab for testing.” 17. Clause 15, 16, 43, 56 and 57 to 61 of retail outlet dealership agreement executed in between the petitioner and the Indian Oil Corporation are extracted as under:- “15. The Dealer will take such care of the outfit and of the building and structures on the premises as also of the receptacles or contains in which the Corporation's products may be supplied to him as a business man of ordinary prudence would take of like premises, outfit, receptacles, and containers belonging to himself. The Dealer shall be responsible for all loss or damage to the outfit, receptacles, containers and premises normal wear and tear excepted. All disputes as to liability hereunder shall be decided by the Corporation's General Manager at whose decision shall be final and the Dealer shall pay to the Corporation within a week of a notice in writing requiring him to do so the amount determined as being due on account of any such loss or damage. 16. No repairs to the outfit shall be done by the Dealer unless previously authorised by the Corporation in writing. The Dealer shall not interfere with or attempt to adjust the outfit or any part thereof but shall notify the Corporation immediately of the necessity of any repair or adjustment and thereby ensure that the outfit is in proper working order and delivering full and proper measure at all times, The Dealer shall not operate the outfit while it is out of order. 43. The Dealer undertakes faithfully and promptly to carry out, observe and perform all direction or rules given or made from time to time by the Corporation for the proper carrying on of the dealership of the Corporation. The Dealer shall scrupulously observe and comply with all laws, rules, regulations and requisitions of the Central/State Governments and of all authorities appointed by them or either of them including in particular the Chief Inspector of Explosives. Government of India, and/or Municipal and/or any other local authority with regard to the storage and sale of such petroleum products. x x x x x x x x x x x x x x x x x x x x x x x x 56. Government of India, and/or Municipal and/or any other local authority with regard to the storage and sale of such petroleum products. x x x x x x x x x x x x x x x x x x x x x x x x 56. Notwithstanding anything to the contrary herein contained. The Corporation shall be at liberty to terminate this Agreement forthwith upon or at any time after the happening of any of the following events namely:- (a) If the Dealer shall commit a breach of any of the covenants and stipulations contained in the Agreement, and fail to remedy such breach within four days of the receipt of a written notice from the Corporation in that regard. (b) Upon (i) the death or adjudication as insolvent of the Dealer, If he an individual; (ii) the dissolution of the partnership of the Dealer's firm or the death or adjudication as insolvent of any partner of the firm, if the Dealer be a firm; (iii) the liquidation, whether voluntary or otherwise of the passing of an effective, resolution for winding up, if the Dealer be a Company or Cooperative Society. (c) If any attachment is levied and continued to be levied for a period of seven days upon the effects of the Dealer or any individual partner for the time being of the Dealer's firm or any member of the Dealer Co-operative Society. (d) If the Dealer or any partner in the dealer's firm or any member of the Cooperative Society appointed as dealer hereunder shall be convicted of a criminal, offence. (e) If a Receiver shall be appointed of any property or assets of the Dealer or of any partner in the Dealer's firm of any member of the Dealer Co-operative Society. (f) If the licence issued to the Dealer by the relevant authorities for the storage of petroleum products supplied by the Corporation is called or revoked. (g) If the Dealer shall for any reason make default in payment to the Corporation in full or his outstanding as appearing in Corporation's books of accounts beyond 4 days of demand by the Corporation. (h) If the Dealer does not adhere to the instructions issued from time to time by the Corporation in connection with safe practices to be followed by him in the supply storage of the Corporation's products or otherwise. (h) If the Dealer does not adhere to the instructions issued from time to time by the Corporation in connection with safe practices to be followed by him in the supply storage of the Corporation's products or otherwise. (i) If the Dealer shall deliberately contaminate of temper with the quality of any of the Corporation's products. (j) If the Dealer shall sell the Corporation's products at prices higher than those fixed by the Corporation. (k) If the Dealer shall either by himself or by his servants or agents commit or suffer to be committed any act which, in the opinion of the General Manager of the Corporation for the time being in whose decision shall be final, prejudicial to the interest or good name of the Corporation or its products; the General Manager shall not be bound to give reasons for such decision. (l) If any information given by the Dealer in his application for appointment as a Dealer shall be found to untrue or incorrect in any material respect. The Corporation's right to terminate this Agreement under the terms of this clause shall be without prejudice to any of its other rights and remedies against the Dealers. In the event of the Corporation terminating this Agreement under the provisions of this clause, it shall not be liable to pay for any loss or compensation respect of such termination PROVIDED THAT that the supply of any petroleum products by the Corporation to the Dealer, pending expiry of any notice of termination or after any, act, contravention or omission by the Dealer entitling the Corporation to terminate Agreement shall have been become known to the Corporation, shall not in any way prejudice or affect right of the Corporation to revoke and/or enforce the termination of this Agreement and the licence granted hereunder. x x x x x x x x x x x x 57. x x x x x x x x x x x x 57. On the termination of this Agreement, should there be any money due to the Corporation the Dealer undertakes to pay same forthwith to the Corporation at its office at if the Corporation shall appropriate the cash or the cash proceeds of the approved securities deposited by the dealer as security under clause 52 hereof the extend of the amount due to it and if the amount thus appropriated shall be insufficient to cover Dealers indebtedness to the Corporation, the Dealer agree to pay to the Corporation at any such balance on demand therefore being made by the Corporation. 58. On the termination of the licence and permission the Dealer will immediately remove from premises all goods property and effects belonging to him and hand over to the Corporation vacant and peaceful possession of the premises at the Corporation shall be entitled to enter upon the premises without any hindrance or objection from the Dealer and Dealer shall cease to have any right whatsoever enter or on remain, on use the premises or the outfit in any manner. In case such goods, property effects are not so removed by the Dealer within three days of termination, the same may be removed by the Corporation at the Dealer's risks and the Corporation shall be under no obligation whatsoever to take any steps for the protection thereof and shall not in any way be responsible for loss or damage thereto. 59. Upon the termination of this Agreement for any cause whatsoever, the property in the petroleum products supplied by the Corporation and at the date of the termination in the possession of the Dealer shall automatically revert to and become vested in the Corporation and the Corporation shall be at liberty to deal with such products in any manner it deems fit but shall reimburse to the dealer the cost thereof at the then current rate for the supply by if of the petroleum products so taken over by the Corporation as applicable to the dealer. 60. 60. After the termination of this Agreement, neither the Dealer (if he shall be an individual) nor any nor of dealer (if the dealer be a firm) nor any member of the co-operative society constitute the dealer (if the dealer be co-operative society) shall carry on business in petroleum products as the agent, dealer, or distributor (either by himself or as a partner in any firm or as a member of a co-operative society) of any other petroleum company with in a radius of five miles from the Corporation's premises herein above mentioned without obtaining the Corporation's prior written permission therefor. 61. The dealer shall not at any time whether during the period of this agreement or after its termination divulge or make know any confidential information consulting the accounts, secret, process or any particular in any voice relating to the business of the Corporation.” 17. We find that inspection of the petitioner’s retail outlet dealership was carried out on 6.5.2017 by a team comprising of various officers including Sri Ganesh Tiwari, OEM, Midco. In the inspection, when after breaking the seal, one dispensing unit of MPD, Make Midco, Series Surefill, Serial No.10DC0197V, Model SFH2224ASHPI was opened, an additional fitting was found hanging from Pulsar assembly, Cap No.10C3515E. The Pulsar assembly, Cap No.10C3515E was removed from the dispensing unit and was forwarded for further necessary action. Sri Ganesh Tiwari, OEM, Midco had submitted his inspection report in which he categorically mentioned that in the inspection he found extra cable in the Pulsar assembly and I.C. 18. On the basis of the inspection report dated 6.5.2017, the Indian Oil Corporation on 15.5.2017 issued a letter to the petitioner requiring its comments on the inspection report for future course of action and in the said letter it was also mentioned that after receipt of report of additional fitting from OEM vendor, proceedings shall be initiated under the terms and conditions of the dealership agreement. Petitioner while submitting comments submitted that dispensing unit at the retail outlet dealership is the property of the Indian Oil Corporation and once in the inspection, seal of the unit has been found intact, petitioner cannot be held responsible for any additional fitting found inside the machine. Petitioner while submitting comments submitted that dispensing unit at the retail outlet dealership is the property of the Indian Oil Corporation and once in the inspection, seal of the unit has been found intact, petitioner cannot be held responsible for any additional fitting found inside the machine. On receipt of comments of the petitioner, a show cause notice was issued by the Indian Oil Corporation on 12.6.2017 requiring the petitioner to show cause as to why retail outlet dealership and dealership agreement may not be terminated. Petitioner submitted reply to the show cause notice wherein a ground has been taken that once in the letter of fact finding inquiry it was mentioned that future action shall be taken under the retail outlet dealership agreement only after the receipt of the report from the Midco Company, there could not have been any occasion to issue show cause notice before the receipt of the said report. 19. The competent authority of the Indian Oil Corporation considered the reply of the show cause notice submitted by the petitioner and passed the impugned order dated 29.7.2017 wherein finding has been recorded that Midco Engineer was present at the time of inspection on 6.5.2017 and he has submitted his report that additional fitting was found in the dispensing unit at the retail outlet dealership of the petitioner therefore, there is no need for any subsequent report. Since any additional fitting inside the dispensing unit is in violation of the provisions made in the Marketing Discipline Guidelines, 2012 and also is in violation of the provisions of the dealership agreement accordingly, petitioner’s retail outlet dealership and dealership agreement have been terminated. 20. So far as the ground taken by the petitioner that on the basis of subsequent report submitted by the Midco Company on 9.12.2017 he has been exonerated from all the charges in the criminal case, is concerned, it is note worthy that the subsequent report dated 9.12.2017 also suggests tampering in the dispensing unit at the retail outlet dealership of the petitioner. Accordingly, we are of the view that petitioner cannot get any relief even on the strength of the subsequent report dated 9.12.2017. 21. Accordingly, the writ petition lacks merit and is dismissed.