PETROL DEALERS ASSOCIATION Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THE Petitioner is an association of licence holders from oil companies for sale of petroleum products. The Central Government has issued various public orders in exercise of its power under Section 3 of the Essential Commodities Act, 1955 ("the Act") in relation to petroleum products. These orders concern the production, sale, distribution, price control, storage, transportation etc. of petroleum products. In 1997, the State Government issued an order called "the Maharashtra Petroleum Products Dealers (Licensing and Control) Order, 1997". In particular, the order provided for licence to be obtained by every dealer in petroleum products operating in Maharashtra from the State Government. This order was purportedly issued by the State Government under Section 3 of the Act as a delegate of the Central Government. The Petitioner, as a representative body of petroleum product dealers, has challenged the State Government order in this petition chiefly on the ground of lack of competence on the part of the State to issue the same.

(2.) MR .Kanuga, learned Counsel for the Petitioner, submits that the Central Government by promulgating the various orders (referred to in the Petition) in regard to petroleum products, has covered the entire field on the subject and the State Government, as a delegate of the Central Government, has no authority to make any provision in respect of the same subject. At any rate, submits the learned Counsel, no provision can be made by the State Government which is inconsistent with any order issued by the Central Government on the subject. He relies on the judgments of the judgments of the Supreme Court in the cases of Deep Chand v. State of Uttar Pradesh (AIR 1959 SC 648) and State of Orissa vs. M/s.M.A. Tulloch and Co. (AIR 1964 SC 1284) and the judgments of Kerala High Court in the case of Tata Iron and Steel Co. vs. State of Kerala (To be typed)and of the Rajasthan High Court in Sitaramand Sons vs. State of Rajasthan (To be typed)in support.

(3.) SECTION 3 of the Act provides that if the Central Government is of the opinion that it is necessary or expedient to do so for maintaining or increasing supplies of any essential commodity or for securing its equitable distribution and availability at fair price, or for securing any essential commodity for the Defence of India or efficient conduct of military operations, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. Sub -section (2) makes a provision for regulating by licences, permits or otherwise the production or manufacture of any essential commodity, for controlling the price at which any essential commodity may be bought or sold or regulating by licence, permit or otherwise storage, transport, distribution, disposal, acquisition, use or consumption of any essential commodity or prohibiting the withholding from sale of any essential commodity ordinarily kept for sale. Section 5 provides for delegation of powers by the Central Government to make orders or issue notifications under Section 3 to such officers or such authorities subordinate to the Central Government or to such State Government or such officer or authority subordinate to State Government as may be specified.