dealership agreement - The Legal Chamber

The Supreme Court held that the mandatory 120-day period for filing a written statement in a commercial suit was extended by its COVID-19 limitation orders. Crucially, it ruled that even if a written statement is not filed, the defendant’s fundamental right to cross-examine the plaintiff’s witnesses is not forfeited, as procedural rules must serve substantive justice. Facts Of The Case: In 2019, M/s Anvita Auto Tech Works Pvt. Ltd. appointed M/s Aroush Motors as a dealer for CFMOTO motorcycles. The plaintiff invested significant sums in security deposits, showroom setup, and initial stock. The business was disrupted when a government ban on BS-IV vehicles took effect in April 2020, and the defendant failed to supply promised upgrade kits. Consequently, the plaintiff terminated the dealer...

The Supreme Court upheld the Calcutta High Court’s decision, ruling that a partnership firm does not automatically dissolve upon a partner’s death if the partnership deed permits continuation with surviving partners. The Court held that Indian Oil Corporation (IOCL) could not arbitrarily stop kerosene supply without terminating the dealership agreement. It clarified that reconstitution of the firm does not require all legal heirs to join, emphasizing IOCL’s obligation to act fairly as a state instrumentality. The judgment reinforced that contractual terms and partnership deeds override rigid policy guidelines in commercial disputes. Facts Of The Case: The case involved a dispute between Indian Oil Corporation Limited (IOCL) and M/s Shree Niwas Ramgopal, a partnership firm operating as a ...

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Supreme Court: Right to Cross-Examine Survives Even If Written Statement Is Not Filed

Death of a Partner Doesn’t End Business: Supreme Court Rules in Favor of Reconstituted Firm