TMI Blog2002 (12) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... them to the need of initiating arbitration proceedings. - Appeal Civil 8620-8621 of 2002 - - - Dated:- 20-12-2002 - R. Lahoti And B. Kumar,JJ. JUDGMENT 1. Leave granted. 2. By an agreement dated 31st day of March, 1994 entered into between the Indian Oil Corporation Limited and the appellants, the appellants were appointed dealer in petroleum products. It appears that on 15.12.1999. officers of the respondent-Corporation visited the retail outlet of the appellants. An inspection was carried out. On 24.1.2000, the Corporation 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied on as the ground for cancellation of the develop. What has been relied on is the failure of the sample taken from the appellants outlet consequent whereupon supply to the appellants outlet was suspended. The State Government acting through the Collector of the District suspended the appellants' licence which authorized them to deal in petroleum products and also imposed a fine on them. 4. The appellants filed a writ petition laying challenge to the order of termination. The petition has been dismissed by the High Court on the ground 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sample taken and lab test carried out is of about a month which is capable of causing marginal variation as detected. The learned senior counsel for the appellants invited attention the Court to an order dated 24.10.2002 passed by the Commissioner, Nanital in an appeal preferred against the suspension of petitioners licence which too was founded on the test report of the sample taken on 11.2.2000. Impressed by non-compliance with the instructions contained in the government orders and the delay in carrying out the lab tests, also 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 righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be more careful and shall show full regard to the visiting officials of the respondent-Corporation and extend their full cooperation in their dealings with the respondent. 7. So far as the view taken by the High Court that the remedy by way of recourse to arbitration clause was available to the appellants and therefore the writ petition filed by the appellants was liable to be dismissed, suffice it to observe that the rule of exclusion of writ jurisdiction by availability of an alternative remedy is a rule of discretion and not one of compulsion. In an appropriate case in spite of availability of the alternative remedy, the High Court may still exercise its writ jurisdiction in at least three contingencies: (i) where the writ petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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