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2025 Supreme(Raj) 1971

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
MUNNURI LAXMAN, J.
 
M/s. My Own Eco Energy Private Limited – Appellant 
Versus
Union of India, through Secretary, Ministry Of Consumer Affairs, Food And Public Distribution – Respondent 
S.B. Civil Writ Petition No. 6796, 1031 of 2025
Decided on : 04-07-2025
 

Advocates:
Advocate Appeared:
For the Appellant : Ms. Simran Mehta, Adv. With Mr. Falgun Buch, Adv. Mr. gopal Krishna Chhangani, Adv. Mr.Suniel Purohit, Adv.
For the Respondent: Mr.Nitesh Mathur, AGC

Drop-in fuel is classified as a petroleum product and an essential commodity under the law, thus subject to regulations outlined in the Control Order, 2005.

Headnote:(A) Essential Commodities Act, 1955 - Sections 2A and 6A - Motor Spirit and High-Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 - Applicability of regulations on drop-in bio-fuel - Petitioners claimed that drop-in fuel is not an essential commodity and sought relief from confiscation orders - Respondents contended that drop-in fuel is a hydrocarbon and thus falls under essential commodities - The court ruled that drop-in fuel, containing hydrocarbons, is considered petroleum and is subject to the Control Order as an essential commodity (Paras 6, 30, 34).

(B) The court addressed whether drop-in fuel is an essential commodity and if the Control Order, 2005 applies to it - The distinction made between petroleum and non-petroleum products was pivotal (Paras 29, 38).

(C) The court elaborated on the powers of the Central Government under the Essential Commodities Act to regulate essential commodities and authorized marketing (Paras 21, 28).

Findings of Court:
The actions taken by the authorities regarding the seizure of drop-in fuel were found to be within jurisdiction, confirming that such fuels fall under essential commodities and are regulated by existing laws, justifying confiscation (Paras 35, 39).

Issues: The court addressed the main issue of the classification of drop-in fuel as an essential commodity and the applicability of the Control Order, 2005 (Paras 20, 36).

Ratio Decidendi: The court clarified that all hydrocarbon liquids, including drop-in fuels, are treated as petroleum products under the definitions of both the Petroleum Act and Control Order; thus, the rules applicable to petroleum also apply to drop-in fuel (Paras 29, 38).

Result: Both writ petitions dismissed.

JUDGMENT :

MUNNURI LAXMAN, J.

1. This order disposes of S.B. Civil Writ Petition No. 6796/2025 and S.B. Civil Writ Petition No.1031/2025.

2. The reliefs sought in S.B. Civil Writ Petition No.6796/2025 are as follows:

i) By an appropriate writ, order or direction, the provisions of the Motor Spirit and High-Speed diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 with its subsequent amendments, are not applicable upon the Indizel which is a Drop in bio-fuel and further, the respondent authorities be restrained to take any coercive action against the petitioner firm and permit the petitioner firm to continue with its business of Drop in bio-fuel as a retail outlet dealer.

ii) Any other appropriate order or direction which this Hon’ble Court may deem fit just and proper in the facts and circumstances of the case may kindly be passed in favour of the petitioner.

iii) Costs of the writ petition may kindly be awarded to the petitioner.

3. The reliefs sought in S.B.Civil Writ Petition No.1031/2025 are as follows:

i) By an appropriate writ, order or direction, the provisions of the Motor Spirit and High-Speed diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 with its subsequent amendments, are not applicable upon the Indizel which is a Drop in bio-fuel and further, the respondent authorities be restrained to take any coercive action against the petitioner firm and permit the petitioner firm to continue with its business of Drop in bio-fuel as a retail outlet dealer.

ii) By appropriate writ, order of direction,t he impguned order dated 30.12.2024 (Annex-17) passed by the learned Additional District Collector, Nagaur may kindly be declared illegal and be quashed and set aside and any proceeding initiated consequently thereto may also be declared non-est.

iii) Any other appropriate order or direction which this Hon’ble Court may deem fit just and proper in the facts and circumstances of the case may kindly be passed in favour of the petitioner.

iii) Costs of the writ petition may kindly be awarded to the petitioner.

4. For the sake of brevity, the facts stated in S.B. Civil Writ Petition No. 6796/2025 (M/s. My Own Eco Energy Private Limited vs. Union of India & Ors.) are adopted for the disposal of both writ petitions. The petitioner-Company is engaged in the manufacturing, distribution, marketing, and retail of Indizel, which is India’s first Euro 6-compliant drop-in bio-fuel. This industry was established pursuant to the National Policy on Bio-fuels of 2018. Indizel, a drop-in bio-fuel, is a non-fossil fuel. The petitioner- Company is the largest manufacturer of drop-in fuel in India and is planning to market it through multiple fuel stations across the country.

5. The petitioner in S.B. Civil Writ Petition No. 1031/2025 is a Firm engaged in selling drop-in fuel by establishing retail outlets for the sale of the drop-in fuel manufactured by the petitioner-Company.

6. The primary claim of the petitioner-Company is that drop-in fuel, which is a non-bituminous fuel, is not an essential commodity as notified under the Essential Commodities Act. Therefore, the provisions of the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 (hereinafter referred to as “the Control Order, 2005”), which was promulgated by the Central Government by invoking powers under Section 3 of the Essential Commodities Act, 1955, are inapplicable to the drop-in fuel manufactured by the petitioner-Company.

7. Further, the case of the petitioner-Company is that, as per the definition contained in the Petroleum and Natural Gas Rules, 1959, framed by exercising powers under Sections 5 and 6 of the Oilfields (Regulation and Development) Act, 1948, "petroleum" has been defined in a manner that does not include drop-in fuel. Hence, drop-in fuel cannot be considered a petroleum product so as to attract the application of the Control Order, 2005.

8. On this

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