# In the matter of Indian Oil Corporation Limited & Ors. vs. Shree Niwas Ramgopal and Ors.

> SC judgment dated 2025-07-14. Citation: TCN-2025-SC-00070. The case involves a dispute over the supply of kerosene to a partnership firm, M/s Shree Niwas…

- **Court:** SC
- **Order date:** 14 Jul 2025
- **Citation:** TCN-2025-SC-00070
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/indian-oil-corporation-limited-ors-vs-shree-niwas-ramgopal-and-ors-a525b23f

## Summary

### Background

The case involves a dispute over the supply of kerosene to a partnership firm, M/s Shree Niwas Ramgopal, by Indian Oil Corporation Limited (IOCL) after the death of one of the partners, Kanhaiyalal Sonthalia. Disputes arose among the heirs regarding the deceased's shareholding, leading to confusion about the firm's reconstitution. IOCL initially approved the continuation of the firm but later refused to extend the supply of kerosene, citing the failure of all legal heirs to join or express their willingness to join the reconstituted firm.

## Facts

M/s Shree Niwas Ramgopal was a proprietorship firm of Kanhaiyalal Sonthalia, later reconstituted as a partnership firm.

A kerosene dealership agreement was entered between the partnership firm and IOCL on 11.05.1990.

Kanhaiyalal Sonthalia died on 29.11.2009, leaving behind his wife, seven sons, and four daughters.

Disputes arose among the heirs regarding the 55% shareholding of the deceased in the partnership firm.

IOCL approved the continuation of the firm till 14.06.2010 but later refused to extend the supply of kerosene.

The High Court directed IOCL to allow the partnership firm to be reconstituted.

IOCL appealed against the High Court's decision.

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## Issues and analysis

### Issue 1: Whether IOCL was justified in refusing to recognize the reconstituted firm based on its policy …

**Ratio:** IOCL's refusal was not justified as the policy guidelines did not mandate all legal heirs

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**Reasoning:** The court interpreted the policy guidelines and the partnership deed, finding that the

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**Interpretation:** The guidelines do not make it mandatory for all legal heirs to join or express

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**Application:** The court applied this interpretation to the facts of the case, concluding that

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## Parties

- **Judges:** PANKAJ M…; Ahsanuddin…
- **Appellants:** Indian Oil…; Indian Oil…
- **Respondents:** M/S Shree Niwas…
- **Other parties:** Affir…
- **Advocates:** Madhavi…; Yashraj Singh…; +1 more

## Timeline

- **1990-05-11 — Dealership Ag…**: Partnership firm entered into a…
- **2009-11-29 — Death of P…**: Kanhaiyalal Sonthalia, a…

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