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LPG Distributor Has No Legitimate Expectation To Retain Customers It Enrols On Behalf Of Oil Companies: Allahabad High Court
['Upasna Agrawal']
Supreme Court - High Court - Legal Breaking News | Live Law India
The Allahabad High Court has held that an LPG distributor has no legitimate expectation to retain customers on its rolls, as those customers are enrolled on behalf of the Oil Marketing Companies and not for the distributor itself.
Clause 4.4 of the LPG Manual permits the oil companies to alter a distributorship's area of operation and binds the distributor to surrender, transfer or accept customers.
An earlier Market Restructuring-Transfer of Customers Policy of 2018 was quashed by the Bombay High Court in 2019, and SLP against that judgment is pending before the Supreme Court without stay.
Declining to follow the Bombay High Court, the Court held“We beg to differ from the aforesaid observation of the Bombay High Court because the Bombay High Court did not notice certain relevant clauses of LPG Manual, Dealership agreement and LOI.”
Clauses 4.4 and 4.6 of the LPG Manual were held to be independent provisions serving different objects.