The petitioner had been a dealer in petroleum products from 1949 at
premises No. 267 Galle Road, Colombo 4 when the said premises were
with the British owned Shell Company until the same vested with the 1 *
respondent Corporation in 1964 under the Ceylon Petroleum Corporation
Act after which the business was continued on an Agreement with the
Corporation. The Agreement of Dealership could be terminated either
without notice on the ground of defaults on the part o f the dealer or by
either party giving 3 months notice to the other party.
There was no allegation of default against the petitioner who carried on
the business of selling petroleum and providing ancillary services including
the maintenance of a service station, at a well located site on the land side
of the Galle Road. The average monthly sales were about Rs. 12 million.
The 1st respondent Corporation by its letter dated 25.4.1998(P4) terminated
the Agreement on the second ground namely, mutual notice and required
the petitioner to hand over vacant possession of the premises on or before
31.12.1998. P4 states that the dealership was being terminated since the
land on which the business is being conducted, being owned by the 1st
respondent Corporation was the most suitable site for the construction of
a Head Office Complex for the Corporation. A Committee which had
considered nine locations finally recommended the site occupied by the

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