Law:

Section:

Standard Operating Procedures (SOP)--- ----Connotation---Dispute between parties was with regard to theft/ pilferage of furnace oil carried by transporter and supplied to oil company---Claim of oil company was to the extent of shortage made in 25 trips but the Arbitrator reduced the quantum to 10 trips---Single Judge of High Court made award rule of the Court with the modification that the loss was reduced to the extent of last trip when theft was detected---Validity---Standard Operating Procedures are adopted by companies to set routine procedures that prescribe accepted principles or practices for completing any activity or functions helpful for better running of the company internally and externally both---Certain standard procedures are being adopted by companies for their internal and external better functioning---Standard Operating Procedures are in fact routine procedures developed by certain companies either in written or in verbal form or are therefore, customary procedures and carry the same force as that of directives and instructions---Violation of SOPs can result in imposition of fine and penalty or other administrative measures as the case may be---Standard Operating Procedures though are internal arrangements of a company but these SOPs could be applied to contractors, clients/customers of the company, who to a certain extent are obliged to abide by these SOPs of companies, subject to the conditions that SOPs should not be violative of fundamental principles of law---Standard Operating Procedures are being adopted almost in every company and are considered to be integral part for an effective/quality system to be adopted and followed and to facilitate consistency in smooth running of a company which may include instructions/directions/worksheets/derivatives and other methods for adoption and application of such SOPs---Standard Operating Procedures describe either regular or routine working procedures conducted and followed within an organization and procedures to be adopted while dealing with person, institutions etc. to avoid any future eventuality, if any---Some SOPs are designed in such a way to maintain quality control and quality assurance…

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