Jammu & Kashmir and Ladakh High Court: Dealership Termination Doesn’t Automatically End Lease Agreement

The High Court of Jammu & Kashmir and Ladakh has ruled that a dealership agreement and a lease agreement are distinct and separate contracts.

The court ruled that termination of a dealership does not automatically terminate the lease for the premises from which the business operated.

This judgment came in a case where Indian Oil terminated a dealership but also sought to evict the dealer from the leased property.

The court stated that the rights and obligations under each contract must be enforced independently, and the eviction would require separate legal proceedings under tenancy laws.

[Chairman Indian Oil Corporation v Zareena Akhter]