JHARKHAND KEROSENE DEALERS ASSOCIATION Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) THESE two appeals are directed against a common judgment dated 16th April, 2004, passed by the learned Single Judge on two writ applications, which had been filed by the two appellants before us. The appellant in L.P.A. No. 417/2004 is the Jharkhand Kerosene Dealers ' Association, whereas in the other appeal, being L.P.A. No. 416/2004, the appellant is the. All India Kerosene Oil Dealers ' Federation. In both the writ applications, the subject -matter of challenge was the order dated 22nd December, 2003, passed by the State Government in respect of commission to be paid to Kerosene Oil Wholesale Dealers in the different districts within the State. In order to appreciate the order, which was passed, one will have to consider the factual background which has been set out by the learned Single Judge in his impugned order.

(2.) IT will appear that the Government of India in its Petroleum and Chemicals Ministry had appointed a Committee to examine and report in the matter of determination of the ex -refinery process of refined petroleum products. The said Committee fixed the commission at Rs. 7.70 on the sale of Kerosene, when the price of one Kilo -litre was Rs. 358.80. While fixing the said rate, the Committee had taken note of the fact that in the year 1965 the commission to the Agents was being paid at the rate of 2.15% of the value of Kerosene Oil per Kilo -litre sold. The writ petitioners wrote to the Ministry of Petroleum requesting fixation of Agents ' commission at the rate of 2.15% of the total value per Kilo -litre and also other allowances at the rate of 1% leakage on the cost value, barrel depreciation handling and other expenses. Thereafter, the writ petitioners in CWJC No. 1471/2001 filed a writ petition, before the Patna High Court being CWJC No. 11057/1996, which, according to the appellants, was disposed of with a direction to the respondents to fix the rate of commission @ 2.15% per barrel of Kerosene Oil. Subsequently, the petitioner -Federation filed a petition for modification of the said order dated 13th May, 1998, on the further submission that the competent authority for fixing such commission was the Union Of India in its Ministry of Petroleum. On such submission, the earlier order dated 13th May, 1998, was modified by the order dated 13th October, 1998, with liberty to the petitioner to approach the Union Of India for redressal of its grievances. It appears that the petitioners thereafter made a representation to the Commissioner -cum -Secretary, Food Supply & Commerce Department, Government, of Bihar, requesting that the commission @ 2.15% be given to those whole -sale dealers, who are the members of the petitioner -Federation. The Deputy Secretary to the Government of Bihar, Food, Civil Supply and Commerce Department, vide Circular dated 10th August, 1999, addressed to the District Magistrates of three districts, namely, Rohtas, Bhojpur and Bokaro, directed them to take a proper decision in the light of the judgment and order dated 13th May, 1998 passed by the Patna High Court. Thereafter, according to the appellants, the District Magistrates/Deputy Commissioners in the States of Bihar and Jharkhand had allowed 2.15% commission plus leakage and other expenditures to the wholesale kerosene dealers of the respective districts. Subsequent thereto, the Commissioner -cum -Secretary, Food, Civil Supply and Commerce Department, Government of Jharkhand, issued a letter dated 29th December, 2003, addressed to all the Deputy Commissioners, Jharkhand, informing them that the Ministry of Petroleum and Natural Gas, Government of India, is the competent authority to fix the rate of commission and not the Deputy Commissioner; therefore, the payment of 2.15% commission to the members of the Dealers ' Association was illegal and was to be stopped forthwith. As indicated hereinabove, it is the said order, which was the subject -matter of challenge in the two writ applications, which were filed on behalf of the said two writ petitioners.

(3.) APPEARING in support of the first of the said appeals, Mr. R.K. Murarka urged that the order impugned in the writ application had been made on the erroneous supposition that the State Government did not have the authority to add to the price which had already been fixed both for wholesalers and retailers in respect of the sale of kerosene. Furthermore, an erroneous impression was given that the orders were passed by the district authorities at the behest of the High Court at Patna in terms of its order passed on 13th May, 1998.