High Court Of Rajasthan
Judgename : Govind Mathur
Sushil Kumar - Appellant
Versus
State of Rajasthan - Respondent
S. B. Civil Writ Petition No. 3849 of 2000
Decided On : 05/25/2005
License - Petroleum Product Distribution - Rajasthan Petroleum Products (Licensing and Control) Order 1990, Clause 3(5) - The court discussed the provisions of Clause 3(5) of the Order of 1990, which prohibits the issuance of a license for petroleum product distribution within a 10 km radius of an existing retail outlet. The court found that the petitioner's license for distributing high-speed diesel was valid as no retail outlet existed within the specified radius at the time of the license grant. The court held that the proviso to Clause 3(5) did not apply to the petitioner's situation as the retail outlet was established after the petitioner had already been operating. The appellate authorities' failure to recognize this led to the quashing of their orders.
Fact of the Case:
The petitioner was granted a license to distribute high-speed diesel, but was later directed to stop distribution due to the establishment of a retail outlet by Indian Oil Corporation. The petitioner challenged the orders of the District Supply Officer, the Collector, and the Additional Commissioner, contending that the proviso to Clause 3(5) of the Order of 1990 did not apply to his situation.
Finding of the Court:
The court found that the petitioner's license was valid as no retail outlet existed within the specified radius at the time of the license grant. The court held that the proviso to Clause 3(5) did not apply to the petitioner's situation as the retail outlet was established after the petitioner had already been operating. The appellate authorities' failure to recognize this led to the quashing of their orders.
Issues: Validity of license for high-speed diesel distribution, applicability of proviso to Clause 3(5) of the Order of 1990, and the establishment of a retail outlet by Indian Oil Corporation.
Ratio Decidendi: The court held that the petitioner's license for distributing high-speed diesel was valid as no retail outlet existed within the specified radius at the time of the license grant. The court found that the proviso to Clause 3(5) did not apply to the petitioner's situation as the retail outlet was established after the petitioner had already been operating.
Final Decision: The court allowed the writ petition and quashed the orders passed by the District Supply Officer, the Collector, and the Additional Commissioner.
Govind Mathur, J.-A license was granted by the licensing authority to the petitioner on 110.1997 to carry on business of purchase, sale and store for sale the petroleum product viz. High speed diesel oil at Suraj Oil Centre, Randhisar. The license granted was to remain in currency upto 31.03.2017.
2. The District Supply Officer, Churu by an order-dated 12.07.2000 directed the petitioner to stop distribution of diesel with immediate effect and then to report to his office.
3. The petitioner being aggrieved by order-dated 12.07.2000 preferred an appeal under Clause (20) of the Rajasthan Petroleum Products (Licensing and Control) Order 1990 (hereinafter referred to as “the Order of 1990”). The petitioner contended before the appellate authority that he was distributing High speed diesel in pursuance of the license granted to him by the competent authority on 110.1997, therefore, there was no just and valid reason to direct him to stop distribution of High speed diesel. The appeal preferred by the petitioner was rejected by the appellate authority by an order dated 31.08.2000 on the count that no permission could be granted to the petitioner for distribution of High speed diesel in view of proviso to Sub-clause (5) of Clause 3 of the Order of 1990. The petitioner challenged validity of order passed by the appellate authority dated 31.08.2000 by way of filing a revision petition before the Commissioner Food and Supply, Jaipur. The same too was rejected by the Additional Commissioner (Food), Jaipur by order dated 23.09.2000, Hence, this writ petition is preferred by the petitioner giving challenge to the order passed by the District Supply Officer, Churu dated 12.07.2000, the order passed by the appellate authority i.e., the Collector, Churu dated 31.08.2000 and the order passed by the Additional Commissioner (Food) and Civil Supply, Jaipur dated 23.09.2000.
4. The contention of the petitioner is that the proviso to Sub-clause (5) of Clause 3 of the Order of 1990 is having no application in present controversy as he was distributing High speed oil in pursuance of the license dated 110.1997 granted prior to establishment of petrol pump by Indian Oil Corporation (respondent No. 5)
.5. A reply to the writ petition has been filed on behalf of the respondents stating therein that according to proviso to Sub-clause (5) of Clause 3 of the Order of 1990 no license could have been granted in favour of the petitioner for distribution of High speed diesel as a petrol pump was established by the Indian Oil Corporation wherefrom the barrel point of the petitioner is within a radius of 10 Kms. The petrol pump was installed by the Indian Oil Corporation on 05.07.2000.
.6. I have heard Counsel for the parties.
.7. As stated above, a license was granted to the petitioner on 110.1997 by the licensing authority under the Order of 1990 to carry on business of purchase, sale and store for sale the petroleum product viz. High speed diesel oil. The petitioner was to operate his business in village Randhisar, Ratangarh-Chhapar Road in District Churu. After granting license to the petitioner petrol pump was established by Indian Oil Corporation on 05.07.2000 within radius of 10 Kms. of which the petitioner was also operating his business. Proviso to Sub-clause (5) of Clause 3 of the order of 1990 provides that where no authorised retail out-let dealer for High speed diesel exists in rural areas the barrel point dealer can sale High speed diesel in accordance with the direction issued by Government or District Collector from time to time. Sub-clause (5) of Clause 3 of the order of 1990 reads as under: -
.“(5) In the rural areas where no authorised retail out-let dealer for High Speed Diesel exists, the barrel point dealers can sell the High Speed Diesel in such areas under such directions which may be issued by the Government or District Collector from time to time: Provided that no license shall be issued to carry on business as a Barrel Point-Deale
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