CHANDRA GUPTA Vs. STATE OF U P

JUDGEMENT

(1.) Large number of writ petitions have been filed by petty diesel dealers praying that the Government Order dated 21.8.1998 prohibiting them from using a dispensing pump and underground tank be quashed and a writ of mandamus be issued directing the authorities to issue them a licence in Form (XII) of the Petroleum Rules, 1976, and also to convert their retail licence for sale of diesel into a whole sellers licence. Two such writ petitions in which leading arguments were advanced are being disposed of by this order.

(2.) The petitioners were granted licence for selling diesel in retail in accordance with U. P. High Speed Diesel OH and Light Diesel Oil (Maintenance of Supplies and Distribution) Order, 1981 (hereinafter referred to as the 1981 Control Order). They were appointed as "petty diesel dealers" by the District Magistrate. The State Government issued an order on 21.8.1998 directing that the petty diesel dealers shall not be permitted to store diesel in an underground tank and to use a dispensing pump for effecting the sale of diesel. The main grievance of the petitioner is that the impugned Government Order curtails their right to store diesel in an underground tank and also to sell the same by use of dispensing pump.

(3.) In order to appreciate the contentions raised. It is necessary to mention the reasons which impelled the State Government to introduce the system of appointment of petty diesel dealers. Sub-clause (6) of clause 16 of the 1981 Control Order lays down that every dealer, shall comply with the general or special directions which may be given by the State Government for the purpose of giving effect to the provisions of the order and any contravention of such direction shall be deemed to be a contravention of the Control Order. On 16.9.1987, State Government issued a general direction laying down guidelines for appointment of petty diesel dealer for sale of High Speed Diesel Oil in retail. It is recited in the order that the retail outlets of Government Oil Companies for the sale of diesel are normally situated in all the cities but there are no retail outlets of diesel in the rural areas due to which the consumers, specially the farmers, face considerable hardship in carrying the diesel from the cities to their places and this was having an adverse impact on agricultural operations. The Stale Government had accordingly taken a decision that the requirement of diesel of the farmers who were residing at considerable distance from the cities and regular retail outlets should be met by making an appropriate arrangement and in this connection, petty diesel dealers be appointed under the provisions of 1981 Control Order. The order further recites that as diesel was an inflammable petroleum product whose storage was governed by the provisions of Petroleum Rules. 1976 and further in order to eliminate the chances of adulteration and black-marketing in the commodity, it was necessary to impose some regulatory measures regarding appointment of petty diesel dealer. Thereafter the order gives in detail the conditions, which had to be observed in the matter of appointment and also in carrying on business by petty diesel dealers. Condition No. 1 mentions that no petty diesel dealer will be appointed within a radius of five kilometres of a regular retail outlet established by an Oil Company on any National or State Highway. Condition No. 2 provides that petty diesel dealers will not be allowed to store more than four kilolitres (4000 litres) of diesel at one point of time. Condition No. 6 provides that renewal of licence of petty diesel dealers shall be made only for a period of one year and if in future a retail outlet of an Oil Company is established within five kilometres of his place of business, his licence shall not be renewed any further. Condition No. 8 provides that the appointing authority of a petty diesel dealer will be Collector who is licensing authority under the 1981 Control Order. Condition No. 9 provides that a petty diesel dealer shall be attached to a retail outlet of an Oil Company and it will be incumbent on him to take supply of diesel from the said retail outlet in barrels and drums. Condition No. 11 provides that in order to avoid chances of adulteration a petty diesel dealer will not be allowed to sell kerosene and diesel simultaneously from the same place. Another order laying down the guidelines for appointment of petty diesel dealers was issued by the State Government on 25.4.1997 which contained almost the same conditions as in the order issued on 16.9.1987.