Point of Law: In case of seizure of scheduled commodities, for any violation or contravention of the provisions of this Order, a report of seizure shall be submitted to the Collector/Joint Collectors, as the case may be, for initiating the action under section 6-A(1) of the Essential Commodities Act,1955

ORDER:

1. This writ petition is filed under Article 226 of the Constitution of India, seeking the following relief:

“Writ of Mandamus or other appropriate writ order or direction declaring the proceedings in Rc.No.591/2020-S8 dated 16.10.2020 issued by the 3rd respondent herein suspending the Form-B licence issued in favour petitioner for distributing the Gas Cylinders through M/s Royal Gas Agency under the provisions A P Petroleum Products Licensing and Regulation of Supplies Order 1980 is illegal arbitrary unreasonable and violative of Articles 14 and 19g of Constitution of India and consequently set-aside the proceedings in RCNo.591/2020-S8 dated 16.10.2020 issued by the 3rd respondent herein.”

2. The petitioner -M/s. Royal Gas Company obtained gas agency from M/s. Hindustan Petroleum Corporation Limited is running the said agency from 28.05.1984 by obtaining permissions from competent authorities from time to time.

3. While so, on 14.10.2020, the fifth respondent/Civil Supplies Deputy Tahsildar (CSDT) along with the officials of Vigilance & Enforcement, Guntur conducted surprise inspection of the petitioner gas agency and found the following variations.

4. Though the petitioner explained to the 5th respondent with details of stocks available in the gas agency, the 5th respondent seized the available ground stock of LPG cylinders worth Rs.11,09,087/-from the gas agency and handed over the same to one Sri B.R.S Reddy, Proprietor of M/s. Rama Krishna HP Gas Agency for temporary custody and filed a report under Section 6-A of Essential Commodities Act, 1955 before the District Collector, Guntur to confiscate the entire seized stock to the Government and also the 5th respondent herein/CSDT, Guntur submitted a report to the District Collector to initiate necessary disciplinary action against the petitioner for the alleged irregularities.

5. Further, basing on the report of the 5th respondent herein/CSDT, Guntur, the third respondent/Joint Collector & Additional District Magistrate issued proceedings vide Rc.No.591/2020-S8 dated 16.10.2020 suspending Form-B license issued in the name of this petitioner, during pendency of the disciplinary proceedings, directing him to submit his written explanation for the charges levelled against him in the said notice. Questioning the said proceedings Rc.No.591/2020-S8 dated 16.10.2020, the present writ petition is filed requesting to declare the same as illegal, arbitrary and with a consequential direction to set-aside the same.

6. The third respondent filed counter affidavit, denying material allegations inter-alia contending that, since the petitioner violated the license conditions, a report was submitted for taking disciplinary action during pendency of the disciplinary proceedings and Form-B license of the petitioner’s agency was suspended not under Section 6-A proceedings. Therefore, there is no irregularity or illegality in the order passed by the respondents and requested to dismiss the writ petition.

7. During hearing, Sri P. Durga Prasad, learned counsel for the petitioner contended that, when the supply boys went out for delivering cylinders to the customers, even without waiting for their return, report was prepared and the report did not disclose the exact details. However, as seen from the show cause notice issued to this petitioner, it is clear that, it was issued in the proceedings initiated under Section 6-A of the Essential Commodities Act and