SC affirms it’s dual role: Not only a Court of Law, but also of Equity

SC affirms it’s dual role: Not only a Court of Law, but also of Equity

The Supreme Court in a recent hearing reiterated its role not only as a court of law but also as a court of equity. The case in question involved a petition challenging an order issued by the Allahabad High Court, with Justices C.T. Ravikumar and Rajesh Bindal presiding over the bench.

The dispute centered on the termination of dealership rights belonging to respondent no. 1, who faced allegations of misconduct including fabrication of equipment and short supply. Respondent no. 1 initially sought recourse by filing an Original Suit before the Civil Judge, Hathras, obtaining an interim injunction against the termination of their dealership. However, this suit was later withdrawn in 2022.

Subsequently, the petitioners proceeded to terminate respondent no. 1's dealership rights, prompting a challenge from the latter. Upon review, the Supreme Court bench noted that the alleged incident had occurred approximately 13 years prior, and respondent no. 1 had already endured suspension of their dealership in 2009, with revival only in 2011. Consequently, the Court set aside the termination order issued on August 1, 2022.

In rendering its decision, the Supreme Court referred to the case of Chandra Singh vs. State of Bihar, which underscored the Court's dual role as both a court of law and equity. Additionally, the bench invoked the precedent set by the case of Indian Oil Corporation Ltd. vs. State of Bihar & Ors., which emphasized the Court's discretion in entertaining special leave petitions under Article 136 of the Constitution.

The Court emphasized that it typically grants leave under Article 136 in cases involving substantial questions of law of general or public importance, or where manifest injustice arises from the impugned order or judgment. Applying this principle to the present case, the Court dismissed the appeal, affirming its commitment to equitable principles and the exercise of discretion in legal matters.

Case: INDIAN OIL CORPORATION LTD & ORS vs. M/S MITAI FILLING STATION & ORS,

Petition(s) for Special Leave to Appeal (C) No(s). 6969/2024.

Click here to read/download order.

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