BHARAT PETROLEUM CORPORATION LTD. versus CHEMBUR SERVICE STATION

Citation: [2011] 3 S.C.R. 632 · Decided: 02-03-2011 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Matter referred to larger bench

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Judgment (excerpt)

A 
B 
[2011) 3 S.C.R. 632 
BHARAT PETROLEUM CORPORATION LTD. 
V. 
CHEMBUR SERVICE STATION 
(Civil Appeal No(s). 2276 of 2011) 
MARCH 02, 2011 
[R.V. RAVEENDRAN AND H.L. GOKHALE, JJ.] 
Public Premises (Eviction of Unauthorised Occupant) 
Act, 1971 - Appellant, PSU, in the year 1972, entering into a 
C dealership agreement with the respondent, appointing it as 
dealer to sell appellant's petroleum products at appellant's 
premises at ·the price specified by the appellant - Breach of 
trust by the respondent - Show cause notice by the appellant 
as to why dealership agreement be not terminated - Suit 
o before the Single Judge of Court of Small Causes - Interim · 
order directing the appellant to maintain status quo to the 
effect that the respondent shall remain in possession of the 
petrol pump and that the appellant shall continue to supply 
petrol and petroleum products to the petrol pump at the suit 
E premises - On appeal, the Division Bench of the ~urt of 
Small Causes vacated the direction to continue supply of 
petrol and petroleum products but maintained the order of 
status quo with respect to possession of the respondent -
Cross-writ petitions - High Court upheld the order which 
F 
vacated the direction to the appellant to continue supply of 
petrol and petroleum products - High Court also clarified that 
the said order of status quo did not preclude the appellant 
from taking recourse to recovery of possession of the suit 
property from the respondent by following due process of law 
including by resorting to action under the provisions of the 
G Public Premises Act, if permissible - Meanwhile, termination 
of the dealership agreement - On appeal, held: Difference of 
opinion on issues as to nature of licence granted to the 
respondent by the appellant under the Agreement; whether 
H 
632 
BHARAT PETROLEUM CORP. LTD. v. CHEMBUR 633 
SERVICE STATION 
the High Court was justified in upholding the grant of interim A 
order of status quo and diracting the appellant to secure 
possession from the raspondent of the petrol pump premises 
by resorting to proceedings under the 1971 Act; and whether 
the respondent had become a deemed tenant in 1972 -
Matter referred to Larger Bench ...:. Bombay Rents, Hotel and B 
Lodging Houses, Rates Control Act, 1947 - ss. 15A and 
5(4A). 
In the year 1972, the appellant Company-PSU 
engaged In refining, distributing and selling petroleum C 
. ' products, entered Into a Dispensing Pump and Selling 
· Licence Agreement with the respondent, appointing It as 
the dealer for selling the petroleum products of the 
appellant from Its Retail Petroleum Outlet (RPO) at the 
price specified by the appellant. In the year 1995, a fresh 
dealership agreement was executed between the parties.. D 
The respondent allegedly manipulated/altered the original 
chip In the dispensing unit with a view to make Illegal 
gain by cheating the customers of the company. The 
appellant Issued a shQw cause notice to the respondent 
to show cause as to why his dealership agreement E 
should not be terminated. The respondent then flied a suit 
In the Court of Small Causes for a declaration that the 
respondent was a tenant of the appellant company in 
respect of the structures, and sub-tenant of the appellant 
In regard to the land on which RPO was sltuatedi that the F 
supply of petrol and petroleum products by the appellant 
at the suit premises was an essential supply under 
Section 29 of the Maharashtra Rent Control Act, 1999; 
and that the show cause notice was Illegal and the 
appellant had no sufficient cause for withholding the G 
essential supply of petrol and petroleum products. The 
respondent also flied an Interim application to restrain the 
appellants from dispossessing them from the premises 
and also from withholding supply of petrol and petroleum 
products. The Slngle Judge of the Court of Small Causes H 
634 
SUPREME COURT REPORTS 
[2011] 3 S.C.R. 
A granted an interim order of staus quo directing the 
appellant not to dispossess the respondent from the 
petrol pump and to continue the supply of petrol and 
petroleum products to the petrol pump in the suit 
premises to the respondent. On appeal, the Division 
B Ben.ch of the Court of Small Causes set aside the 
direction to continue the supply of petrol and petroleum 
products in the suit premises to respondent but 
maintained the order of status quo with respect to the 
possession of the respondent. 
c 
In the writ petition filed by the resp

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