Question: I am a dealer of petrochemical products like petrol and diesel in Uttar Pradesh. The Bharat Petroleum Corporation Ltd (BPCL) has terminated my dealership and is now forcefully vacating me from my land. I am the owner of this land and signed an agreement with the BPCL for selling of petrol and diesel. The act of BPCL forcefully to vacate me from land is illegal so I want to initiate legal action against the BPCL. There is a lease agreement between BPCL and me. According to the lease agreement the BPCL is paying twenty five thousand as premium for my land. Total area of my land is about three acre. The current market value is about twenty three crore rupees. The rent is very miniscule. Therefore, I want to evict the BPCL from my land. Please give me some advice.
Asked from: Uttar Pradesh
You should carefully read the terms and conditions of the lease agreement between BPCL and you. As I read the latest advertisement regarding the dealership of petrochemical products, the oil company is the lessee. However, you are the owner of this land. But the BPCL has taken your land on lease for a fixed term.
Therefore it is paying a premium which is twenty five thousand rupees per month. You have been receiving that premium. The status and capacity of BPCL as a lessee is clearly determined. There is no flaw in the agreement regarding the use of this land by the BPCL.
There are two separate agreements. One for the lease of the land and another for the dealership. Both deeds are independent. If the termination of dealership is illegal you can challenge it in the proper forum. You can avail arbitration clause of the agreement and challenge the cancellation of dealership before the arbitrator.
So far as lease agreement is concerned, you can not evict the BPCL at your own will. You can terminate the lease agreement only on the grounds mentioned in the agreement or breach of any statutory principles. The BPCL can allot the dealership to any other competent person on the leased land. You will receive the premium throughout the period of lease agreement.
Hence, you cannot take any legal action and evict the BPCL from the land only on the ground that it has terminated your dealership. As per the lease agreement you cannot say that BPCL is forcefully vacating me from my land.