SAHU TRADING COMPANY Vs. STATE OF BIHAR

JUDGEMENT

(1.) SINCE the common question of fact as well as law is involved in both the cases, the same have been heard together and are being disposed of by this common judgment.

(2.) IN these writ applications under Articles 226 and 227 of the Constitution of India the petitioners have challenged the validity of the orders dated 29.5.1986 and 29.10.1986 passed by respondent Sub Divisional Officer as well as District Magistrate, whereby the proceeding under the Bihar and Orissa Public Demands Recovery Act has been initiated against the petitioners, copy of the said orders are made Annexure 2 and 3 respectively to this writ application.

(3.) BRIEFLY stated the case of the petitioners is that the petitioners, being wholesale licensee, are carrying on wholesale business of Kerosene oil since 1979 on the basis of the licence granted under the then relevant provisions of the Order. The petitioners purchased kerosene oil from the Patna depot of Indo Burma Petroleum Ltd. and sold the same at Sasaram to the retail licence dealer as per direction of the authority of the Supply department. Clause 3 of the Kerosene Oil (Fixation of Selling Prices) Order, 1978 provides that no dealer shall sell kerosene oil to any person at a price excess of the notified price. Clause 2(b) of the said order defines the declared price in relation to different variety of kerosene oil, which is to be sold in accordance with the provisions as contained in clause 3 of the order as per the direction of the authority of the supply department. In terms of the provisions of the aforesaid order, the respondent Collector has to declare the maximum price of kerosene oil and, accordingly, the maximum price of kerosene oil was declared by the respondent Collector from time to time. It is alleged that in the year 1983 maximum price of kerosene oil was fixed at Rs. 1.86 paise per liter, which was subsequently revised in the year 1987 and the price was again fixed at Rs. 2.18 paise per liter, copy of the said orders fixing price of kerosene oil are made Annexure -1 series to the writ application. Obviously, the wholeseller and/or retailer has to sell kerosene oil at the rate fixed by the respondent authority. According to the petitioners, kerosene oil allotted to the petitioners was sold to the retail dealers strictly at the price fixed by the respondent authority from time to time.