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2004 Supreme(Bom) 1529

Bombay High Court
(DECEMBER 1, 2004)
RELIANCE INDUSTRIES LTD.
Versus
STATE OF MAHARASHTRA

Headnote:Maharashtra Solvent Raffinate Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 - Clause 6 - Essential Commodities Act, Sections 3 and 7 - Grant of licence. - Grant of licence for storage and sale of light diesel oil, subsequently would not absolve company of charge of conducting business without licence. - Petition filed under Article 226 of the Constitution of India seeks quashing of FIR. It was alleged that the petitioner has contravened Sections 3, 7, 8, 9 and 10 of Essential Commodities Act, 1955 read with the Maharashtra Solvent, Raffinate Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 as amended. The petitioner by not obtaining a licence for storage and sale of Light Diesel Oil had contravened the provisions of the said Act and the licensing order. The correspondence annexed to the petition prima facie indicates that the petitioner could never have been under an impression that the licence was granted to it. In its letter addressed to the District Magistrate, the petitioner has referred to its earlier application for issue of licence. A final conclusion as to whether the petitioner bona fide believed that the licence was granted to it or not could only be drawn after the evidence is led. It is true that the State Government has now granted licence. That, however, cannot absolve the petitioner of the charge of conducting the business without a licence. In the circumstances of this case, therefore, it was not possible to quash the FIRs in question.

Judgment

RANJANA DESAI, J.

( 1 ) THIS petition filed under Article 226 of the Constitution of India seeks quashing of F. I. R. No. 102 of 2003 and F. I. R. No. 2-23/03 dated 5th August, 2003, pending on the file of Nhava Shiva Police station and Uran Police Station, District Raigad. It is alleged that the petitioner has contravened sections 3, 7, 8, 9 and 10 of the Essential Commodities Act, 1955 ("the said Act") read with the Maharashtra Solvent, Raffinate Slop (Acquisition. Sale, Storage and Prevention of Use in Automobiles) Order, 2000 as amended.

( 2 ) BEFORE we touch the merits of the case it is necessary to have a look at the relevant provisions of law. Section 3 of the said Act enables the Central government to issue orders providing for regulating or prohibiting the production, supply and distribution of any essential commodity and trade and commerce therein. Section 7 of the said Act provides for penalties for contravention of any order made under section 3. Section 8 of the said Act states that any person who attempts to contravene or abates contravention of any order made under section 3 shall be deemed to have contravened that order. Section 9 of the said Act provides for punishment for making a false statement and section 10 thereof speaks about offences by company. In pursuance of section 3 of the said Act, the Central Government issued the Solvent Raffinate and Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 ("the Central Order" for short ). Clause 3 of the Central Order provides that no peison shall either acquire, store or sell solvent included in the schedule thereto without a licence issued by the State Government or District Magistrate or any other officer authorised by the Central or State Government. Pursuant to sub- clause (1) of clause 3 of the Central Order, the Government of Maharashtra by a notification published in the Official Gazette issued the Maharashtra Solvent, raffinate and Slop (Acquisition, Sale, Storage and Prevention of Use in automobiles; Licensing (Amendment) Order, 2002 (the licensing order for short ). It is necessary to reproduce some of the clauses of the licensing order. Clause 3 so far as it is relevant reads as under :

"3. Prohibition against carrying on business of acquiring, sale, storage or use of Solvent, Raffinate and Slop without licence.- (1) No person shall either acquire, store, sale and use Solvent, Raffinate and Slop except under and in accordance with the terms and conditions of a licence issued in this behalf by the Licensing Authority. "clause 4 reads as under :

"4. Application for licence.- An application for grant of a licence under this Order shall be made to the licensing authority in Form 1. Every such application shall be accompanied a fee of Rs. 1000/- (One thousand only ). Provided that : (a) Every person desiring to acquire, sale, store and use Solvent, raffinate and Slop after the commencement of this Order, shall apply for and obtain a licence under this Order to the Licensing authority; (b) any person who immediately, before the commencement of this order, doing business of acquiring, selling, storing and using solvent, Raffinate and Slop, shall apply for the issue of a licence under this Order within a period of ten days from the date of commencement of this Order. "clause 5 provides for deposit of cash, by a person applying for licence before issuance of licence, as security for the due performance of the terms and condition of the licence. Clause 6 reads as under :

"6. Issue of Licence.- (1) The Licensing Authority shall, on receipt of the application for a licence in prescribed form and on the payment of prescribed licence fee and security deposit, make such inquiry, as it may deem fit, and issue the licence within a period of 45 days from the date of application. "clause 7 reads as under :

"7. Period of Licence.- Every Licence granted under this Order shall be valid for a period of one year from the date of issue of the



































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