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HIGH COURT OF CALCUTTA
D. N. SINHA, J.
Caltex (India)
Versus
Director, West Bengal Fire Services
Matter No.26 of 1959
Decided On : 24-09-1959
PETROLEUM ACT, 1934 - FIRE SERVICES ACT, 1950 - LICENSE - VALIDITY - REPEAL - OCCUPIED FIELD - PITH AND SUBSTANCE - LOCAL GOVERNMENT - PUBLIC HEALTH AND SANITATION - RELEVANCE OF CONSTITUTIONAL PROVISIONS.
Fact of the Case:
The petitioner, a well-known company, had installations at various locations for the storage of petroleum and petroleum products. The company had obtained licenses under the Petroleum Act, 1934, which prescribed the conditions for storage and provided for the issue of licenses. In 1952, the Corporation of Calcutta demanded license fees from the petitioner for the storage of petroleum. The petitioner challenged the legality of the demand, arguing that the license fee was being demanded for a period during which no license fee had been fixed. The petitioner also received a letter from the Director, West Bengal Fire Services, requesting it to apply for licenses under the West Bengal Fire Services Act, 1950, for the storage of petroleum and petroleum products. The petitioner challenged the validity of the Fire Services Act, arguing that it was repugnant to the Petroleum Act and that it occupied the same field as the Petroleum Act.
Finding of the Court:
The court held that the Fire Services Act was a valid law and that it was not repugnant to the Petroleum Act. The court found that the Fire Services Act came within the subject matter of items 5 and 6 in List II, 7th Schedule of the Constitution, namely, the State List. The court also found that the Petroleum Act, 1934, if it came under the Union List, could only come under item 53 and that the subject matter thereof was not identical with items 5 and 6 in the State List. Thus, even if the State Act made an incidental encroachment upon the Central Act, it was not rendered invalid thereby. The court further held that the argument of occupied field also failed because the subject matters of the two Acts were not the same, although some of the provisions may overlap.
Issues: 1. Whether the Fire Services Act, 1950 was repugnant to the Petroleum Act, 1934? 2. Whether the Fire Services Act, 1950 occupied the same field as the Petroleum Act, 1934?
Ratio Decidendi: 1. The court held that the Fire Services Act was not repugnant to the Petroleum Act because: - The Fire Services Act was a State Act, while the Petroleum Act was a Central Act. - The subject matter of the Fire Services Act was public health and sanitation, while the subject matter of the Petroleum Act was the regulation and development of mineral oils and petroleum products. - The Fire Services Act did not intend to occupy the whole field of licensing the premises for the purpose of slaughtering stock for export. 2. The court held that the Fire Services Act did not occupy the same field as the Petroleum Act because: - The subject matters of the two Acts were not the same, although some of the provisions may overlap. - The Petroleum Act, 1934 was not meant to be exclusive but was supplementary to, and contemplated the existence of, State Acts relating to the storage of petroleum.
Final Decision: The court dismissed the petitioner's application and discharged the rule. The court also vacated the interim orders, if any, and made no order as to costs.
(I) Paharpur installation-License No. Ben-197 d/- 28-2-48 and License No. Ben-1200 d/- 9-5-1939. .
(II) Circular Garden Reach Road Installation-License No. Ben-1202 d/- ....................
(III) Budge Budge Installation-License No. Ben-182 d/- ........................
The Petroleum Act, 1934 was an Act passed by the Indian Legislature, which received the assent of the Governor General on 6-9-1934. It was brought into force on 30-3-1937 by a notification dated 23-3-1937. It is an Act to consolidate and amend the law relating to the import, transport, storage, production, refining and blending of petroleum and other inflammable substances. Section 3 of the said Act provides that no one shall import, transport or store any petroleum save in accordance with the Rules made under S. 4 of the said Act, and also that no petroleum can be transported or stored save in accordance with the conditions of any license for the purpose which he may be required to obtain, by Rules made under S. 4. Section 4 empowers the Central Government to make Rules, inter alia prescribing the form and conditions of a license for the storage of any petroleum. In exercise of the rule-making power conferred by S. 4, Rules have been prescribed, known as the "Petroleum Rules, 1937". Rule 115 prescribes the form in which a license may be granted for the storage of petroleum. The licenses taken out by the petitioner company are in the prescribed form, (form "J"). The form of the license shows that it grants the right to the licensee to store non-dangerous petroleum in the storage-shed described in the license, subject to the provisions of the Petroleum Act, 1934, the Rules made thereunder and to the conditions of the license. The condition of the license prescribed in detail as to the manner in which the storage-shed is to be constructed, and where it should be situated. It further lays down that adequate precaution shall be taken at all times for the prevention of accident by fire or explosion. Then there are provisions for allowing access to Inspectors or Sampling Officer appointed by the licensing authority.
2. In May, 1952 the Corporation of Calcutta demanded license fees from the petitioner company for the year 1950-51 for storage of petroleum at Paharpur and Garden Reach. The petitioner company made an application under Art. 226 of the Constitution challenging the legality of such demand. This was numbered as Civil Rule No. 1425 of 1953. This Rule having come up for hearing before me on 24-6-1958, was made absolute on the preliminary point, namely, that the license fee was being demanded for a period during which no license-fee had been fixed. The other constitutional points taken in the said application were left open. On 23-12-1958 the respondent No. 1, the Director, West Bengal Fire Services, wrote a letter to the petitioner company, requesting it to apply for licenses under the West Bengal Fire Services Act, 1950 (West Bengal Act XVIII of 1950) for the storage of petroleum and petroleum products above 20 gallons and for kerosene oil above 40 gallons, a copy thereof is annexed to the petition and marked with the letter "A".
3. The West Bengal Fire Services Act, 1950 (hereinafter referred to as the "Fire Services Act") was passed on 30-3-1950 and came into force on 18-4-1950 inter alia in Calcutta, Garden Reach and Budge Budge. The preamble to the Act states that it is an Act to provide for the maintenance of a fire brigade, for the licensing of warehouses and for certain other matters. Under S. 3 of this Act, it is provided that the
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