Licence

Licence—Where the licence in favour of the licensee is only to use the retail outlet premises or use the equipments/facilities installed therein, exclusively in connection with the sale of the goods of the licensor, the licensee does not have the right to use the premises for dealing or selling any other goods—When the licensee cannot use the premises for any purpose on account of the stoppage of supply of licensor’s goods for sale, it will be wholly unreasonable to require the licensor to sue the licensee for ‘possession’ of such company controlled retail outlet premises—This is not a case where the licensee has alleged that any amount is due to it from the licensor by way of commission or remuneration for services, or that on account of non-payment thereof it is entitled to retain the retail outlet premises and facilities of the licensor by claiming a lien over them under section 221 of the Indian Contract Act, 1872—It is made clear that this decision applies only to licences where the licensor is the owner/ lessee of the premises and the equipment (in this case dispensing pumps and other equipment) and where the licensee is engaged merely for sale of the products of the licensor—In other words, this decision would apply to petrol stations which are known as CCROs (‘Company Controlled Retail Outlets’)—If the licensee is himself the owner/lessee of the premises where the petroleum products outlet is situated or where the exclusive right to use the premises is given to the licensee for carrying on any business or dealing with any goods unconnected with the licensor, this decision may not apply and it may be necessary for the licensor to have recourse either to a Civil Court for a mandatory injunction to give up the premises, or the Estate Officer under the Public Premises Act for ‘eviction’ as the case may be, depending upon the nature of licence and the status and relationship of the parties.

Pay Rs.100/- and get full text of the judgment on the above stated point. Judgment will be sent to you by email only after receipt of full payment in our account.*
File Name:- SC_AUGUST 2011_12

*Terms and Conditions applicable