High Court
Case Details
Court No. - 39 Case :- WRIT - C No. - 19766 of 2022 Petitioner :- M/Ss. Bhrigu Nath Filling Station Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Lal Behari Yadav Counsel for Respondent :- C.S.C. Hon'ble Mrs. Sunita Agarwal,J. Hon'ble Om Prakash Shukla,J.
Legal Reasoning
Heard learned counsel for the parties and perused the record. The petitioner herein claims that it was granted retail outlet dealership of the company known as 'My own Eco Energy Pvt ltd', for distribution of biodiesel.
Decision
It is stated in the writ petition, that the Ministry of Petroleum and Natural Gas, Government of India had issued an order dated 27.08.2020 Chief Secretary/Administrators, the States and Union Territories bringing to their knowledge that the Ministry had issued a notification dated 30.04.2019 laying "Guidelines for sale of Biodiesel for blending with high speed diesel for transportation purpose-2019". addressed to the As per the guidelines, the State Authorities have power to carry out regular inspection of the retail outlet selling biodiesels to ensure that the quality and quantity i.e the standards of sale of fuel is maintained. It was further noted that despite the said guidelines regulating the retail outlet of biodiesel, the Ministry had received several complaints regarding sale of unauthorised products in the name of biodiesel for transportation and industrial purposes. The unauthorised sale of product is not only safety hazard but also revenue loss to the Central/State Government. A request, was, thus, made to issue necessary directions to curb menace of such unauthorised sale. It is then stated that a notification dated 04.06.2018 was issued by the Ministry of Petroleum and Natural Gas disclosing the national policy on biofuels-2018. A notification dated 30.04.2019 was issued by the Government of India issuing guidelines for the sale of biodiesel for transportation purpose. It is then stated that the petitioner was granted licence on 28.07.2021 for retail outlet in accordance with the Government Order dated 01.04.2013. The licence issued by the District Supply Officer, Ghazipur, the respondent herein is appended as Annexure-'4' to the writ petition, finds place at page-'38' of the paper book. The contention is that the petitioner herein was doing the business of sale of biodiesel since the date of issuance of the licence. With the Government Order dated 22.04.2022 issued by the Additional Chief Secretary, Government of U.P, the respondent no.3 had illegally cancelled the licence for retail outlet dealership vide office order dated 08.06.2022. A consequential order dated 30.06.2022 was passed by the respondent no.3 namely the District Supply Officer, Ghazipur issuing direction to the Supply Inspector Zakhania District Ghazipur to seal the stock and send sample for laboratory testing/chemical analysis. The contention is that the petitioner herein is only a retail dealer of the biodiesel manufactured by the company as mentioned above and in the writ petition filed by the company to challenge the orders dated 27.08.2022 and 30.04.2019 issued by the Government of India before the High Court at Mumbai, an interim order dated 11.05.2022 has been passed whereby the authorities had been directed not to take coercive action against the company. Further, the contention is that the Bureau of Indian Standards (BIS) had already passed the sample of the biodiesel produced by the above mentioned company being fit for blending with high speed diesel for transportation purposes. It is, thus, argued that biodiesel product does not come within the definition of the petroleum and petroleum products and the respondent, District Supply Officer, Ghazipur had no jurisdiction to cancel the licence which was granted in perpetuity. There is no power on the District Supply Officer to issue a direction to seal the stock and sample of the stock for chemical analysis. With the passing of the interim order by the High Court, Mumbai, no hinderance can be made to the retail sale by the petitioner under the licence issued by the District Supply Officer, Ghazipur. Having perused the submission made by the learned counsel for the petitioner and the record, we may note that pursuant to the notification issued by the Ministry of Petroleum and Natural Gas, Government of India dated 30.04.2019 issuing guidelines for sale of biodiesel, the State Government had issued Government Orders dated 15.11.2021 and 22.04.2022 for regulating the sale of biodiesel in the State of U.P and it was decided and that for production and storage of biodiesel, permission/licence is to be granted by the Alternative Energy Source Department. It was also noted therein that pursuant to date no such Order, the said Government till permission/licence/registration has been accorded by the Alternative Energy Source Department for production or retail sale of biodiesel in the State of U.P. It was also noted that several complaints were received in the State about illegal sale of biodiesel and the prohibited oily liquid is being sold in the name of biodiesel which has resulted in loss to the consumer, State revenue as also to the environment. The credibility of the legal biodiesel business is affected because of such illegal business. It was, therefore, decided that in view of the arrangement made in the Government Orders dated 15.11.2021 and 22.04.2022, the licence issued by the District Supply Officer, Ghazipur in the name of the petitioner for retail outlet sale of renewable diesel (bio diesel) dated 28.07.2021 cannot be sustained and is liable to be cancelled. With the cancellation of the licence issued to the petitioner vide order dated 08.06.2022, direction has been given by the District Supply Officer to seal the stock available at the place of business and send the sample of biodiesel for laboratory investigation. Having noted the Government Orders issued by the Government of India which regulate the sale of bio diesel and the letter issued by the concerned Secretary of the Ministry of Petroleum and Natural Gas, New Delhi reminding the States/Union Territories to take appropriate action in the matter of unauthorised production and sale of unauthorised product in the name of biodiesel, we find that the regulatory measures adopted by the District Supply Officer, Ghazipur in cancelling the licence issued by it and sending the sample for laboratory investigation cannot be said to suffer from any error of law. of In any case, issuance of the matter licence/registration/permission for production and sale of bio diesel in the State of U.P is within the jurisdiction of the Alternative Energy Source Department and the District Supply Officer, Ghazipur was not authorised to issue licence in the year, 2021 on the basis of a Government Order of the year 2013, after the guidelines were framed in the year 2018. No exception, therefore, can be taken to the order impugned. However, the petitioner is at liberty to approach the competent authority namely Alternative Energy Source Department of the State of U.P for issuance of licence for retail outlet sale of biodiesel after complying with the conditions for such grants. In case the petitioner moves an application along with the copy of this order within the period of two weeks from today, the competent authority shall be under obligation to take an expeditious decision in accordance with law, preferably, within a period of four weeks of the receipt thereof. The writ petition is, accordingly, disposed of. Order Date :- 17.8.2022 Harshita Digitally signed by HARSHITA Date: 2022.08.23 15:30:49 IST Reason: Location: High Court of Judicature at Allahabad