The sale of bio-diesel mixed with petroleum products to the CTC was in violation of the Control Order of 2005 and punishable under section 7 read with section 3 of the Essential Commodities Act.

Arun Mishra, C.J.

1. Various oil companies have filed the petition by way of Public Interest Litigation praying for the relief to the effect that no illegal sale of bio-diesel takes place within the State of West Bengal by any of the manufacturers of such bio-diesel. Further prayer has been made to prohibit the respondents from giving sanction to such illegal sale of bio-diesel. Petitioners, i.e. Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and the Bharat Petroleum Corporation Limited are the companies duly registered under the Companies Act, 1956. They are involved in the marketing of the oil products. The Union of India has framed an Act being the Petroleum Act, containing provisions for a uniform practice of manufacturing, marketing and selling of different petroleum products. The respondent No. 1 through its Ministry of Petroleum & Natural Gas proposed a policy for use of bio-diesel to be consumed with the petroleum products.

2. It is averred in the petition that bio-diesel is an environmental friendly fuel, which has almost no sulphur, no aromatics, and has about 10% built in oxygen. It is safe to handle and the flash points of bio-diesel are higher than conventional diesel. Blending of bio-diesel with diesel would result in the reduction of un-brunt hydrocarbons, carbon monoxide and particulate matter in auto emissions and will be in the line with the objectives of the Auto Fuel Policy of the Government.

3. It is further averred that bio-diesel can be made from any feedstock oil or fat. The Ministry of Petroleum and Natural Gas adopted a policy inter alia for purchasing, marketing and use of bio-diesel as fuel. Copy of the said policy has been annexed as annexure "P-1" to the writ petition.

4. It is further averred by the petitioners that every manufacturers of the said bio-diesel cannot sell the same in open market their samples have to be approved and certified by the petitioners and they are required to be registered as authorized suppliers. Petitioners came to know that Calcutta Tram Company (CTC) has taken positive steps for the use of bio-diesel and entered into a Memorandum of Understanding for supply of the same with Emami Biotech Limited, the respondent No. 6, who has never got its samples approved and certified by the petitioners and got it registered as authorized supplier. The said samples failed while testing according to the procedure as provided in the Bio-diesel Purchase Policy.

5. The Government of India by a letter dated 22nd April, 2009 through its Joint Secretary, Ministry of Petroleum and Natural Gas, requested the State Government to take suitable steps to curb illegal marketing of bio-diesel for use as transportation fuel. Copy of the said letter has been filed as annexure "P-3" to the petition. The State Government in spite of the same kept mum on the subject and has not taken any step to prohibit such illegal sale in any manner whatsoever. The Excise Department had also not taken any step to prohibit the illegality. There is inaction on the part of the respondents.

6. Affidavit-in-opposition has been filed by the respondent No. 6, Imami Biotech Limited contending that in today's global situation use of bio-diesel is absolutely necessary to ensure pollution free environment, reduce carbon emission and it is highly recommended by the Pollution Control Board. It is further contended that bio-diesel can be used alone or mixed with any ratio with petroleum diesel fuel. The most common plan of mixing is 20% bio-diesel with 80% petroleum diesel as commonly known as B-20 for transport vehicle. For static engine 100% bio-diesel or commonly known as B-100 can be used. The use of the same is prompted by the Government of India. Emission level of different kinds of bio-diesel have been stated in the affidavit so as to point out that it is environmental friendly fuel. To popularize the bio-diesel, the Government has not levied excise duty on it. Custom duty has also been reduced i