LAWS(SC)-2004-9-203

FOKATLAL PRABHULAL BHATT Vs. STATE OF GUJARAT

Decided On September 15, 2004
Fokatlal Prabhulal Bhatt Appellant
V/S
STATE OF GUJARAT Respondents

JUDGEMENT

(1.) The appellants were engaged in the sale of kerosene as wholesale dealers having licences under the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981 (hereinafter referred to as "the Licensing Order of 1981"). Their licences as wholesale dealers in PDS kerosene were to expire on 31-12-2000. They had applied for renewal before the expiry of the period of licence and continued till 30-7-2002 under various temporary orders passed by the licensing authority from time to time. The State Government issued circulars from time to time with a view to wipe out the wholesale dealers who were not appointed by any of the oil companies. These circulars dated 30-7-1988, 4-10-1990, 3-4-1995, 6-1-1997, 29-8-1997, 22-1-1999, 5-5-2001 and 19-6-2001 were quashed by a Division Bench of the High Court in LPAs Nos. 539-54 of 2001.

(2.) The Government of Gujarat then came out with three notifications dated 31-12-2001, 30-3-2002 renewing the licences by three months each and a further notification dated 30-6-2002 for renewal of licence for one month i.e. up to 30-7-2002. These notifications were challenged in the High Court of Gujarat and were quashed by a Single Judge being contrary to the statutory provisions i.e. clause 5 of the Licensing Order of 1981 vide judgment dated 10-7-2002. The High Court directed the authorities to decide the applications for grant of renewal of licences in accordance with law. This judgment became final as the State Government did not file any appeal against this judgment.

(3.) According to the appellants, once these circulars were quashed, all pending applications for renewal of licences had to be dealt with as per clause 5 of the Licensing Order of 1981, even though it was challenged by only 10 persons. The Government of Gujarat thereafter on 31-7-2002 issued the Amendment Order of 2002. By insertion of sub-clause (18-A) in clause 2 of the Licensing Order of 1981 by Amendment Order of 2002, "PDS kerosene wholesale dealer" was defined to mean "a dealer appointed by any of the oil companies engaged in marketing of PDS kerosene, as per the authorisation from the Government of India". It is submitted on behalf of the appellants that the impugned order had two different effects on two groups of kerosene wholesalers; (i) those who held valid licence as on the date of the impugned Amendment Order; and (ii) those whose applications for grant of renewal of licence were expiring on 31-12-2000, which was extended for three months vide notification dated 31-12-2001 and again for a further period of three months vide notification dated 30-3-2002. Simultaneously, with the amendment in the Licensing Order of 1981, the State Government issued a circular dated 31-7-2002 and decided not to renew the licences of those who are not covered under the aforestated definition of "PDS kerosene wholesale dealer", and further to cancel the existing licences of such persons.