The court established that the provisions in the Licensing Order, 1967 were inconsistent with the Essential Commodities Act, 1955 and imposed unreasonable and illegal conditions, violating Article 19 (1) (g) of the Constitution of India.

1. The Legal validity of the West Bengal Lubricating Oil Licensing Order, 1967, (in short, Licensing Order, 1967) and a notification being No. 2864-FS, dated 3rd August, 2000 are in challenge in this Writ Petition.

2. Petitioner No. 1 is the Lubricating Oil Dealers’ Association, a society registered under the West Bengal Society Registration Act, 1961 and the Petitioner No. 2 is the Vice-precedent of the Association.

3. The Petitioners say that the Essential Commodities Act, 1955 (in short, E. C. Act) was enacted at a time when there was acute crisis of some essential goods requiring the interference of the Government for maintenance equitable distribution and availability of such essential goods at a fair price, preventing hoarding black marketing etc. of such essential commodities. Similarly at one point of time there was a gap between the demand and supply of Lubricating Oil in the market for which both the supplies and price used to be controlled by the Central Government. But subsequently the entire scenario has changed radically. Several private enterprises, as well as Government undertakings were permitted to manufacture Lubricating Oil. Import was also allowed and the control of price was withdrawn resulting in huge supply of the Lubricating Oil in the market and the market became fully competitive and in consequence, the consumers are getting wide choices of the brand like any other consumer goods. So, in view of such a radical change, whatever necessity was there prior to control of the supply and price etc. of the Lubricating Oil, no more exists today and since the Lubricating Oil is now a free trading commodity the licensing order, 1967 is now completely irrelevant. It is the grievance of the Petitioners that the licensing order, 1967 contains some unnecessary harsh provisions, not connected with the object stated in the order and the traders of the Lubricating Oils are constantly subjected to harassment by some unscrupulous Government officials under the shelter of those useless provisions. It is further stated in the Writ Petition that in view of the aforesaid reasons there is no such licensing order controlling the trading of the Lubricating Oil in any State other than the State of West Bengal.

4. It is the further say of the Petitioners that petroleum and petroleum products are only covered by the definition of Essential Commodity. The Licensing Order, 1967 has not defined Lubricating Oil. Lubricating Oil is not an item included in the definition of petroleum product in the Petroleum Act or any other Central Act. So, the State has no Legislative competency to pass the Licensing Order, 1967.

5. It is the further case of the Petitioners that considering all such facts and circumstances, being explained by the Petitioners before the authority concerned, operation of the Licensing Order, 1967 was suspended by the authority by a notification dated 6th July, 1999 and subsequently the exemption order was extended. But by a notification dated 1st September, 2000 the notifications of the exemption were revoked and operation of the Licensing Order, 1967 was reimposed without any valid reason whatsoever.

6. It is also a case of the Petitioners that the Central Government never authorised the State of West Bengal under Section 3 of the Essential Commodities Act, 1955 to pass such a control order and the number of the order delegating such authorisation and mentioned in the preamble of the Licensing Order, 1967 is not at all in existence.

7. No Affidavit-in-Opposition against the Writ Petition has been filed by the Union of India, the Respondent No. 1 or the State/Respondents, i.e., the Respondent Nos. 2 to 5. M/s. Castrol India Ltd., Respondent No. 6, which is a manufacturer of Lubricating Oil has filed an Affidavit, in which they supported the Petitioners’ claims.

8. The first submission of learned Advocate Mr. Chatterjee appearing for the Petitioners is that the Licensing Order, 1967 is stated to have been made on the