DURGA OIL COMPANY Vs. STATE OF U P

JUDGEMENT

(1.) R. R. K. Trivedi and M. Katju, JJ. Heard learned counsel for the petitioners and learned counsel appearing for respon dent Nos. 1 to 3 and Sri Dilip Gupta for M/s. Shyam Filling Centre.

(2.) THIS petition has been filed chal lenging the order dated 14th August, 1997 passed by the District Supply Officer, Shah-jahanpur by which he has asked the petitioners to stop using underground tank and dispensing pump unit for sale of petrol and diesel in retail sale. The learned counsel for petitioners has challenged the order on the ground that the petitioners are licensee under Form-XI granted to them under Petroleum Rules, 1976 and also licensee under the High Speed Diesel Oil and Light Diesel Oil Order, 1981, Copies of the licen ces have been filed as Annexures 1 and 2 to the writ petition. Learned counsel for petitioners has submitted that petitioners were permitted to use underground tank and dispensing pump unit under the no ob jection certificate granted by the District Magistrate by order dated 8-3-90, a copy of which has been filed as Annexure 5. Learned counsel for petitioner has also sub mitted that under the Rules only the District Magistrate is the licensing authority and he alone was authorised to issue the impugned notice, and hence the order passed by the District Supply Office: is without authority. He has lastly submitted that this Court in various judgments including the judgment copies of which is Annexure 12 has already taken the view that even a retail dealer may use the dispensing pump unit for purpose of sale subject to permission of the oil com pany. In our opinion since the petitioners are licensee in Form-XI they are not en titled to either store the petroleum products in underground tank or to sell the same by using the dispensing pump unit. Article 4 of the First Schedule to the Petroleum Rules, 1976 provides the purpose for which licence in Form-XI is granted which is as under:- "to import and store petroleum class B otherwise than in bulk in quantity not exceeding 25, 000 litres. "

(3.) IN the circumstances, the order passed on 14th August 1997 is justified and petitioners are not entitled to store the High Speed or Light Speed Diesel Oil in underground tank or use dispensing pump unit.