DILIP OIL CO Vs. STATE OF U P

JUDGEMENT

(1.) Heard Sri R.N. Singh senior advocate assisted by Sri A. K. Singh advocate on behalf of the petitioner, Sri Navin Sinha senior advocate assisted by Sri Arvind Srivastava advocate on behalf of respondent No. 6 and standing counsel on behalf of respondent Nos. 1, 2, 4 and 5.

(2.) For the purpose of distribution of Super Kerosene Oil/Light Diesel Oil in rural areas through fair price shop agents the State Government came out with a policy decision as contained in Government order dated 19.5.1990. Under the said Government order it was provided that there shall be only one block distribution centre/whole seller for each block and all fair price shop agents/retailers shall obtain supply of kerosene oil from the said wholesale dealer. It was further provided that the whole sellers appointed by the oil companies may be appointed block distributor under the Uttar Pradesh Kerosene Oil Order, 1962. Under the provisions of the said Government order dated 19.5.1990 M/s. Indo Traders Corporation, respondent No. 6, through its Proprietor Sri Bal Krishna Agarwal, was appointed as Block Distributor for Super Kerosene Oil/Light Diesel Oil in respect of Block Chanewa, district Mirzapur vide order dated 24.7.1990 and was authorized to distribute kerosene oil for the said block and accordingly a licence in Form 3-Ka under the U.P. Kerosene Oil Order, 1962, was issued in favour of respondent No. 6. While respondent No. 6 was continuing as Block Distributor as aforesaid an advertisement dated 1.10.1993 was published by the Indian Oil Corporation inviting applications for appointment of wholesale dealers by the oil company in respect of the said block Chanewa. The petitioner applied for appointment as wholesale dealer in pursuance of the said advertisement and was ultimately appointed as wholesale dealer of the oil company vide letter dated 9.2.1999. The petitioner has also been granted a licence for the said purpose under the U.P. Kerosene Oil Order, 1962.

(3.) On 1.12.2001 a Government order was issued whereby it was provided that the Government order dated 19.5.1990, contemplated that in the blocks where wholesale dealers have not been appointed by the oil company, the District Magistrate shall appoint a block distributor under U. P. Kerosene Oil Order, 1962. Therefore, under the Government order dated 19.5.1990 the block distributor cannot function, a whole-seller is appointed by the oil companies in respect of the block concerned. The Government order dated 1.12.2001, however, provided that even after appointment of wholesale dealer by the oil company if the District Magistrate considers it necessary to continue with the block distributor appointed by him, earlier for distribution of kerosene in the area, he may do so and the State Government has no objection to it. The aforesaid Government order dated 1.12.2001 was modified by another Government order dated 8.3.2002 wherein It was provided that such block distributors who are continuing under the Government order dated 1.12.2001 should obtain explosive licence and establish underground storage tank, before they can be permitted by the District Magistrate to continue even after appointment of wholesale dealer by the oil company.