Sunil Ambwani, J.

1. We have heard learned counsel appearing for the parties.

2. By this writ petition, the petitioners having valid licenses for 'barrel point' sale of diesel in the respective districts of the State of Rajasthan, for the period upto 2016 and 2017 (for two years from the date of issue or renewal), have challenged the order passed by the Additional Food Commissioner, Food & Civil Supplies Department, Government of Rajasthan dated 19.12.2014, as well as the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 (for short, “the Central Order of 2005”) issued by the Ministry of Petroleum and Natural Gas on 19th December, 2005 under section 3 of the Essential Commodities Act, 1955 and the consequential actions, by which their licenses have been cancelled during the period of their validity.

The petitioners have also prayed for declaration of clauses 2(d) and 3(4) of the Central Order of 2005, as unconstitutional and ultra vires and to declare that the Order of 2005 are not applicable to the State of Rajasthan where the Rajasthan Petroleum Products (Licensing & Control) Order, 1990 (for short, the State Control Order of 1990”) is in force and is holding the field.

3. All the petitioners in these writ petitions have valid and, or renewed licenses under State Control Order, 1990, which authorizes them to sell diesel in retail, with maximum storage capacity of 4000 litres to be stored in drums. They can purchase the diesel from any of the authorized outlet of the Oil Companies. The licenses initially granted for a period of two years, have been renewed and are valid for periods upto the year 2016 or 2017. All the licenses were cancelled by the orders passed by the Licensing Authority in pursuance to the State Government order dated 19.12.2014, giving rise to the writ petitions.

4. It is submitted by learned counsels appearing for the petitioners that the State Government was authorized under the delegation of powers vide S.O. 681(E) dated 30th November, 1974 issued by the Central Government in exercise of the powers conferred by Section 5 of the Essential Commodities Act, 1955 to make orders to provide for the matters specified in clauses (d), (e), (f), (g), (h), (i), (ii) and (j) of sub-section (2) thereof, in relation to all essential commodities other than foodstuffs and fertilizers (whether inorganic, organic or mixed), exercisable by the State Government or in relation to the Union Territory, by the Administrator thereof, subject to certain conditions. It is submitted that in exercise of these delegated powers, the State Government made the Rajasthan Petroleum Products (Licensing & Control) Order, 1990 notified on 8.8.1991. The State Control Order, 1990 was amended by a Notification dated 22.11.1993 amending the definition of “dealer” under clause 2(c) of the State Control Order, 1990. The amendment also inserted sub-clause (5) in clause-3. The definition of “dealer” and sub-clause (5) of the State Control Order, 1990 are quoted as below:-

“(c) 'Dealer' means a person, a firm, an association of persons or a cooperative society engaged in the business of purchase, sale or storage for sale of any Petroleum products and includes:-

(i) Authorized dealer of any Oil Company; and

(ii) Barrel point Dealer engaged in the business of purchase of High speed Diesel from an authorized dealer of any Oil Company and sale or storage for sale of the same; but does not include an Oil Company.”

“(5) In the rural areas where no authorized retail outlet 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 Barrel Point Dealer within a radius of 10 K.M. or any regular Diesel retail out let of any Oil company.”

5. It is submitted that the barrel point sale was