IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BHARATI DANGRE, SHYAM C. CHANDAK, JJ.
Ravindra Vinayak Deshmukh - Appellant
Versus
State Of Maharashtra - Respondent
WRIT PETITION NO.2958 OF 2013
Decided On : 27-02-2025
(A) Essential Commodities Act, 1955 - Sections 3, 7, 8, 9, and 10 - Liquefied Petroleum Gas (Regulation, Supply and Distribution) Order, 2000 - Petitioners challenged the registration of FIR alleging violations of the Act and Order - Court found no authority for the Vigilance Squad's visit and no established offence against the Petitioners. (Paras 1, 10, 12)
(B) Abuse of Process - Continuation of proceedings without a prima facie case constitutes an abuse of process of law. (Paras 13)
Facts of the case:
Petitioners, employees of BPCL, challenged FIR for alleged excess storage of LPG cylinders and unauthorized filling of HPCL cylinders.
Findings of Court:
No violation of the Essential Commodities Act or the LPG Order was established; the FIR was quashed.
Issues: Whether the Vigilance Squad had authority to inspect BPCL premises and whether any offence was committed.
Ratio Decidendi: The court ruled that the absence of a prima facie case and lack of proper authorization for the inspection warranted quashing of the FIR.
Result: Writ Petition allowed, FIR quashed.
JUDGMENT :
BHARATI DANGRE, J.
1. Present Petition is filed by the Territory Manager and Territory Co-ordinator along with Manager and Deputy Manager (Operation) of Bharat Petroleum Corporation Limited (“BPCL”), being aggrieved by registration of C.R.No.3027 of 2012, registered with Uran police station on 7th December 2012, which has invoked offence punishable under Sections 3, 7, 8, 9 and 10 of the Essential Commodities Act, 1955 read with Clause 3(4) of the Liquified Petroleum Gas (Regulation, Supply and Distribution) Order, 2000.
2. On 22nd July 2014, Rule was issued in the Petition and in terms of prayer clause (b), the Investigating Agency was barred from filing the charge-sheet.
3. We have heard Mr.Nitin Pradhan, learned Counsel for the Petitioner and Mr. Prashant Jadhav, learned APP for the Respondent-Authorities.
4. The detail FIR placed on record disclose that the complaint was lodged by the Supply Office of Uran, Mumbai at Uran police station when a raid was conducted by State Level Vigilance Squad, headed by one Ratandeep Gaikwad and upon site inspection, two lacunaes were specifically noted, one being the number of cylinders found in the premises were exceeding by 8655 cylinders, as against the record maintained which indicated total cylinders as 65,118. In addition, it was also found that there were some HPCL cylinders which were lying and the complaint allege that they were illegally filled up at BPCL plant for which accused persons are responsible.
This resulted in registration of FIR by invoking the provisions of Essentials Commodities Act, 1955 as well as Petroleum Order promulgated thereunder.
5. The learned Counsel Mr.Nitin Pradhan has questioned, initiation of the proceedings against the present Petitioners being arrayed as accused on two counts, firstly, as to the authority of the State level Vigilance Squad to visit the premises and secondly, even if assuming for a moment that some cylinders were found to be in excess, what is the offence that has been attracted.
For finding answers, we have turned our attention to the Essential Commodities Act, 1955 which is an Act aimed at control, production, supply and distribution of trade and commerce in the interest of general public.
Section 3 is a provision which empowers the Central Government to control production, supply and distribution of certain essential commodities, Petroleum being one of the commodity which resulted into issuance of the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000 in exercise of powers conferred under Section 3 of the Essential Commodities Act through the Ministry of Petroleum and Natural Gas. The said order of 2000 has defined Government Oil Companies in clause 2(g) and indisputably, BPCL is covered within the said definition. It also defines “public distribution system” means the system of distribution, marketing or selling of liquefied petroleum gas by a Government Oil Company at the Government controlled or declared price through a distribution system approved by the Central and a State Government.
Since the offence allege violation of Rule 3 sub-Rule(4), we deem it appropriate to reproduce it :-
“3 (4) No distributor of a Government Oil Company or a parallel marketeer, (or a piped natural gas supplying company) as the case may be, shall commit or cause to commit any of the activities prohibited herein including those specified in Schedule-I.”
Rule 3 is “Restriction on unauthorised possession, supply and consumption of liquefied petroleum gas” and admittedly, what is only attracted is sub-Rule (4) which we have reproduced above.
6. A careful reading of the said provision would reveal that it is applicable to the distributor of a Government Oil company or parallel marketeer or piped natural gas supplying company, as case may be. A “Parallel marketeer” is specifically defined in sub-Rule (j) to mean any person, firm, company, institution, association of persons, co-operative society or organisation carrying on any or a
The absence of a prima facie case and lack of proper authorization for inspection led to the quashing of the FIR against the Petitioners under the Essential Commodities Act.
Point of Law : Under Section 7 of Act, power to impose penalty is upon Court and not on District Collector.
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Black-marketing of Gas Cylinders – Where a power is given to do a certain thing in a certain way, thing must be done in that way or not at all.
A reasoned order is essential when framing charges under the Essential Commodities Act, ensuring judicial scrutiny of the evidence and arguments presented.
Unauthorized search and seizure by an unauthorised authority can vitiate the institution of a criminal proceeding.
The regulation of LPG pressure regulators is justified under the Essential Commodities Act as they are essential for public safety and do not infringe upon the manufacturers' fundamental rights under....
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