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Head Note

The Arbitration and Conciliation Act, 1996  - Section 7 , Section 8 , Indian Contract Act, 1872  - Section 73

Termination of agreement - Prior Notice - Mandatory - Dealership - Agreement cancelled without adequate notice to respondent dealer - Order set aside - Held, Cancellation of dealership agreement is a serious business and cannot be taken lightly - Adequate notice to be provided to the dealer before termination of his dealership agreement - Non-service of such notice will offend the well established principle that no person should be condemned unheard.

The Arbitration and Conciliation Act, 1996  - Section 7 , Section 8 , Indian Contract Act, 1872  - Section 73

Termination of agreement - Requirement of notice - Non-compliance with - Violation of principles of natural justice.

The Arbitration and Conciliation Act, 1996  - Section 7 , Section 8

Arbitration agreement - Availing of alternative remedy - Agreement an arbitration clause - Termination of agreement - Aggrieved party filed writ petition before HC not invoking arbitration clause - Writ petition decided accordingly by HC - Party aggrieved by this decision cannot invoke arbitration clause after submitting itself to jurisdiction of writ court - Termination challenged by filing writ before High Court - No point of referring the matter to arbitration raised before it - Termination set aside by single judge and this order affirmed by DB in appeal - Petitioner in SLP before Supreme Court raising a plea that in view of arbitration clause in the agreement, respondent was not entitled to seek remedy before writ court - Held, now it is too late for petitioner corporation to raise such plea - Moreso, when petitioner had itself submitted to the jurisdiction of writ court by filing appeal against order of single judge of HC, without objecting to the same.

Topic(s)-Termination of Agreement

Important Decision(s)- 

• Contract- Termination of agreement - Prior Notice - Mandatory.
• Cancellation of dealership agreement is a serious business and cannot be taken lightly.
• Termination of agreement - Requirement of notice - Non-compliance with - Violation of principles of natural justice.