Bharat Petroleum Corp.Ltd vs Chembur Service Station

The Supreme Court addressed the dispute between Bharat Petroleum Corporation Ltd. (BPCL) and its dealer regarding allegations of short delivery of petroleum products. The Court emphasized the importance of adhering to the terms of the Dispensing Pump and Selling Licence agreement, and held that the respondent's actions constituted a breach of trust under the agreement. The Court upheld the appellant's decision to terminate the dealership based on the evidence of manipulation of dispensing units, thereby affirming the legal principle that contractual obligations must be strictly observed.