2002 (12) TMI 564

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....n served a show cause notice on the appellants requiring them to explain why density record was not maintained on day-to-day basis as, on 15.12.1999, density upto 9.12.1999 was only recorded in the density register and, secondly, why the appellants did not cooperate with the officers who had come to inspect the retail outlet and rather used un-parliamentary language and displayed discourteous behavior. On 2.2.2000, the appellant sent a reply. The matter rested at that. 3. On 11.2.2000, sample of SKO was taken jointly by the Sub-Divisional Magistrate and officials of the respondent Corporation and sent to Kanpur laboratory of the respondent whereat the sample was received on 13.3.2000 and subjected to lab test on 18.3.2000. The only infir....

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....und that the relationship between the parties is contractual and the dealership agreement contains an arbitration clause and therefore the appropriate remedy available to the appellants was to have recourse to arbitration rather invoking the writ jurisdiction of the High Court. The appellants sought for a review of the order of the High Court which prayer has been refused. The appellants have filed these appeals by special leave. 5. It is submitted by Shri. P. Malhotra, the learned senior counsel for the appellants that the dealership has been terminated on irrelevant and non-existent grounds and, therefore, the order of termination is liable to be set aside. The Government of Uttar Pradesh have issued directions to all the District Magi....

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....keeping in view the previous performance of the petitioners, the learned Commissioner has allowed the appeal and set aside the suspension as also the fine imposed on the petitioners. The learned counsel is right in submitting that in view of the abovesaid facts, the failure of the sample taken from the appellants outlet on 11.2.2000 becomes an irrelevant and non- existent fact which could not have been relied on by the respondent- Corporation for cancelling the appellants licence. 6. As already stated, the cancellation is founded solely on the failure of the appellants' sample. Non-cooperation and discourteous behavior of the appellants has been alleged in a very general way without specifying what was non-cooperation and what was the di....