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2025 Supreme(Del) 478

IN THE HIGH COURT OF DELHI AT NEW DELHI
Anil Kshetarpal, Harish Vaidyanathan Shankar, JJ.
S.K.N. Associates P. Ltd. & anr. - Appellants
Versus
UOI & Anr. - Respondents
LPA 1220 of 2007, W.P.(C) 14682 of 2006
Decided On : 27-08-2025

Advocates Appeared:
For the Appellant :Mr. Anil Sapra, Senior Advocate with Mr. Sanjeet Singh, Mr. Akshay Sapra, Mr. Sarthak Katyal and Mr. Rakshit Das, Advocates.
For the Respondent:Ms. Monika Arora (CGSC) with Mr. Subhrodeep Saha and Ms. Anamika Thakur, Advocates. Mr. B.K. Sood, Advocate for Mr. Avneesh Garg, Mr. Rohit Rishi, Mr. P. Sinha, Ms. Pavitra Singh and Ms. Iptisha, Advocates Ms. Savita Rustogi, Mr. Ashu Tewathia and Ms. Ishita Gupta, Advocates

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 Article 19(1)(g).

Headnote:(A) Essential Commodities Act, 1955 - Section 3 and Section 2A(1) - Regulatory powers granted to the Ministry of Petroleum and Natural Gas concerning petroleum products, including pressure regulators - Petitioners challenged the classification of pressure regulators as essential commodities. (Paras 1, 6, 12)

(B) Fundamental Rights - Article 19(1)(g) - Restriction on trade concerning LPG pressure regulators upheld as reasonable and in public interest. (Paras 13, 30)

(C) Regulatory framework - Court emphasized that a pressure regulator is intrinsically linked to LPG cylinders and its regulation is necessary for public safety and fair distribution of petroleum products. (Paras 25, 32)

Facts of the case:
The petitioners contended that pressure regulators do not fall under the definition of essential commodities and challenged the government's impugned order restricting their manufacture and sale.

Findings of Court:
The Court found merit in the respondents' argument that the regulation of pressure regulators is lawful and integral to the supply chain of LPG, which is a public necessity.

Issues: The main issues addressed were whether pressure regulators qualify as essential commodities and if the regulatory order violated the petitioners' fundamental rights.

Ratio Decidendi: The Court ruled that the Essential Commodities Act allows regulation of products necessary for safety and effective distribution, holding that pressure regulators are essential in ensuring the safe use of LPG.

Result: Writ Petition and LPA dismissed.

Table of Content
1. challenge to regulation of petroleum products. (Para 1)
2. additional reliefs not pursued. (Para 2)
3. link between two legal proceedings acknowledged. (Para 3 , 4)
4. contention on definitions of essential commodities. (Para 5 , 6 , 11 , 12)
5. historical context and legislative intent background. (Para 7 , 8)
6. rules of earlier legislations discussed. (Para 9)
7. arguments for reasonable restrictions under article 19. (Para 14 , 19)
8. public interest and necessity for regulation. (Para 16 , 17 , 18)
9. power of central government under essential commodities act. (Para 20 , 21)
10. distinction between different lpg cylinder specifications. (Para 22 , 23 , 24)
11. connection of pressure regulators to lpg cylinders. (Para 28 , 30 , 31)
12. conclusion on merits and dismissal of petitions. (Para 32 , 33)

JUDGMENT :

HARISH VAIDYANATHAN SHANKAR, J.

1. The present petition, being W.P.(C) No. 14682/2006, has been filed, inter alia, challenging the Order dated 26.04.2000, [Impugned Order dated 26.04.2000] issued by the Ministry of Petroleum and Natural Gas, [Ministry] , whereby the Respondents, by virtue of its powers under Section 3 of the Essential Commodities Act, 1955, [Act], has sought to regulate petroleum and petroleum products by including therein certain items which are ancillary to and used in the supply and distribution of the restricted products.

2. Though the Petitioners have also sought certain other reliefs, in the nature of a writ of mandamus for registration of the Petitioner No.1 as one of their suppliers and to authorize them to supply regulators, as also a writ in the nature of mandamus seeking a direction for the non-interference with the manufacture and sale of pressure regulators, the said reliefs as are elaborated in Paras (b) and (c) of the Prayer have not been pressed.

3. Learned Senior Counsel for the Petitioner has only pressed into service the challenge to the Impugned Order passed by the Ministry. It is further submitted by the learned Senior Counsel that this challenge has a direct and consequential bearing on LPA No. 1220/2007, which has been preferred by the Petitioners against the Judgment dated 05.09.2007, [Impugned Judgment dated 05.09.2007] passed by the learned Single Judge of this Court in W.P. (C) No. 2753/2007. By the said Judgment impugned in the LPA aforementioned, the learned Single Judge held that there was no cancellation of the license for pressure regulators, but merely a case of non-renewal of the license in respect of regulators with a collar diameter of 25.6 mm, as the same came to be deleted. Such variation was, in turn, a consequence of the Order impugned in the present writ petition.

4. In view of the same, by way of the present judgement, while dealing with the issues and challenges raised in W.P.(C) No. 14682/2006, we intend to dispose of both W.P.(C) No. 14682/2006 and LPA No. 1220/2007 by a common judgement.

5. Learned Senior Counsel for the Petitioner in W.P.(C) No. 14682/2006 has raised a two-fold challenge to the Impugned Order dated 26.04.2000.

6. The first contention of the learned Senior Counsel is that the goods in question - i.e., the pressure regulators - do not qualify as 'Essential Commodities‟, and resultantly, there arose no cause for the passage of the Impugned Order dated 26.04.2000. In support of this argument, reliance is placed on Section 2A(1) of the Act wherein 'essential commodity’ has been defined as a commodity which is specified in the Schedule appended to the Act and it is contended that by the use of word 'means’ the same excludes the possibility of there being an inclusive definition and the definition would have to be restricted only to such of those commodities as are set out in the Schedule appended to the Act. Section 2A (1) of the Act reads as follows: -

2A. Essential commodities declaration, etc.- (1) For the purposes of this Act, essential commodity means a commodity specified in the Schedule.”

7. The Schedule appended to the Act, more speci

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