ORDER :

Leave granted.

2. The issue involved in the present matter(s) is with respect to the validity of the policy decision taken by the Government of India.

3. Writ Petition (Civil) No.7517 of 2013 was filed in the High Court of Kerala at Ernakulam. The prayer made in the writ petition is as follows:

I. Issue an appropriate writ, order or direction declaring that the diesel price hike introduced as per Ext.P1 to the Kerala State Road Transport Corporation, compelling the petitioner to pay enhanced rate than while purchasing diesel from private or other diesel bunk, is wholly arbitrary, illegal, unjust, unconstitutional and violative of Article 12 and 14 of the Constitution of India;

(ii) Issue any appropriate order commanding the 1st respondent to withdraw the dual pricing policy of diesel introduced as per Ext.P1 or in the alternative accord exemption to the petitioner, from the category of bulk consumer, and treat the petitioner as a retail customer for the purpose of diesel purchasing.

(iii) Issue a writ of mandamus or any other appropriate writ, order or direction commanding the respondents to refund the excess diesel charge collection in pursuance to clause (b) of Ext.P1, with interest at the treasury rate, with effect from 17.01.2013 to the petitioner, forthwith.

4. The Ministry of Petroleum, Government of India, had taken a decision not to make the payment of subsidy to the bulk consumers on purchase of diesel. Consequently, the bulk consumers were required to make the payment, which was a little higher than what was being paid by the retailers. The said decision was questioned in the various writ applications filed in different High Courts.

5. It was averred in the writ application, that Kerala State Road Transport Corporation had been duly established and formed on 01.04.1965, and that it had 6108 buses, operating 5855 schedules per day. An average of 35 lakh passengers used the services provided by the petitioner, the average daily collection was of Rs. 4.48 crores. The corporation presently has 30,132 permanent employees and around 10,000-temporary/ provisional/impaneled employees. Since petitioner is an establishment functioning without profit motives, with a social obligation to render maximum service to the public, it extended free traveling services to the physically differently abled persons, freedom fighters, journalists, press/media reporters, MLAs (Members of Legislative Assembly) and M.Ps. (Members of Parliament). Thus, the total number of free passes issued so far was 52,666.

6. The first respondent in the Writ Petition- Government of India, through the Ministry of Petroleum and Natural Gas, issued direction dated 17th January 2013 in which, it was observed, that sale of diesel, to all consumers taking bulk supplies directly from the installations of the Oil Marketing Companies (for short "the OMCs"), be made at the non-subsidized, market-determined price, with immediate effect. The OMCs would not be eligible for any subsidy on such direct sale of diesel to bulk consumers. Thus, the petitioner claimed, that the respondent No.1 has meted out discrimination as against the Kerala State Road Transport Corporation in violation of Article 14 of the Constitution of India. The corporation was purchasing diesel in bulk, with the daily consumption of diesel being 4,10,000 litres, and was suffering a loss of Rs. 18/- crores in a month, with the annual estimated loss of Rs. 216/- crores.

7. In other States as well, writ applications were filed more or less on similar grounds. In some States, an interim stay was granted. The decision of the Government of India was claimed to be arbitrary and that it would make rendering service to the public at large difficult. There was no nexus to be achieved by the aforesaid policy decision. It was also obligatory on the part of the State Government to provide a subsidy. It was obligato