The court determined that no license is required for transporting up to 2500 liters of Class-B petroleum using Bowsers, affirming the legality of such operations.

Headnote:(A) Petroleum Act, 1934 - Section 7 - The writ petitions challenge the letter prohibiting retail outlets from supplying High Speed Diesel (HSD) to Bowsers; petitioners claim no prohibition exists - Court finds that transporting up to 2500 litres of Class-B petroleum does not require a license; thus, quashing the impugned letter is justified. (Paras 23, 28)

(B) Jurisprudence - The court reinforces that administrative complaints cannot curtail legitimate business operations if they comply with statutory provisions. (Paras 24, 27)

Facts of the case:
Petitioners operate retail petroleum outlets under valid licenses but are accused of violating rules by supplying HSD to Bowsers for transportation, prompting the challenged letter.

Findings of Court:
The letter prohibiting supply was quashed as it conflicted with statutory allowances.

Issues: Whether the law requires a license for supplying HSD to a Bowser and whether such supply is prohibited.

Ratio Decidendi: Court held that there is no legal requirement for a license to supply HSD to Bowsers as long as the quantity does not exceed permissible limits.

Result: Both petitions are allowed.

CAV ORDER

1. The Petitioner in Writ Petition No.29746/2016 is before this Court seeking for the following reliefs:

i. Issue a writ in the nature of Certiorari, quashing the letter/order bearing No. KA/Pet/Complaints dated 29.02.2016 issued by the 3^rd respondent at Annexure-A.

ii. Issue a writ in the nature of Mandamus directing the respondent authorities not to cause any trouble to the petitioner in the event of petitioner selling/supplying HSD i.e. Petroleum Class-B through Bowsers/Tankers from its outlet subject to the supply at any time being not in excess of 2500 litrs and same is contained in a receptacle not exceeding 1000 Liters in capacity as per Section 7 (i) of the Petroleum Act.

iii. Pass any other order as this Hon’ble Court deems fit in the facts and circumstances of the case.

2. The Petitioner in Writ Petition No.16468/2016 is before this Court seeking for the following reliefs:

a. Issue a writ in the nature of Certiorari or such other appropriate writ or orders or directions, quashing the letter/order bearing No. KA/Pet/Complaints dated 29.02.2016 issued by the 3^rd respondent(i.e. Annexure-D) as arbitrary, illegal and unjust.

b. Issue a writ of mandamus or such other appropriate writ or orders or directions, directing the respondents/authorities concerned not to cause any trouble/impediment to the petitioners and/or otherwise launch any prosecution or initiate any adverse or punitive action against the petitioners/retail petroleum outlets, in the event of the petitioners selling/supplying from their petroleum retail outlets High Speed Diesel (HSD) i.e. Petroleum Class B to Bowsers/Tankers subject to the supply at any time being not in excess of 2500 Litres and the same is contained in a receptacle not exceeding 1000 Litres in capacity as per Section 7 (i) of the Petroleum Act, 1934 .

c. To award costs and grant such other relief as this Hon’ble Court deems fit and expedient in the circumstances of the case, in the interest of justice and equity.

Facts in 16468 of 2018:

3. The petitioners claim to be in the business of catering fuels and lubricants in retail petroleum outlets in Bangalore under a valid license granted by the Oil Marketing Companies [OMCs] like Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, etc. Petitioner No.21 is stated to be an Association of such retail petroleum outlets who have been formed to protect the business interest of such retail outlets.

4. The petitioners claim that all of them have obtained licenses for retail vending as well as from the Department of Explosives, Department of Legal Metrology, Labour Department, Commercial Tax Department, etc. They also claim that they are making payments of the necessary ESI, PF and trade license fees to the Bruhat Bengaluru Mahanagara Palike [BBMP].

5. The petitioners dealing with both petrol and High Speed Diesel [HSD] have obtained the necessary licenses in Form-XIV issued under the Petroleum Rules, 2002, to store petroleum in tanks in connection with pump output for fuelling motor conveyances. The petitioners have been vending HSD to the concerned vehicles that come to their retail outlets. Apart from these vehicles, there is also a request made to the petitioners to supply HSD to the location of the customer on account of large diesel generation sets, earth-moving equipment and or the like, which cannot be brought to the vending outlet of the petitioners.

6. It is in that background that the petitioners, the purchasers and or specific service providers have made available motor vehicle equipment called BOWSER for such supply. The manner in which the same is made operational is that the purchaser sends a Bowser to the retail outlet of the petitioner, either belonging to him or to a service provider. HSD is filled into the said Bowser, the Bowser transports the HSD from the retail outlet to the location where it is required to be used, thereby enabling the operation of the generator sets without any let or hi

Click Here to Read the rest of this document

2025 Supreme(Online)(Kar) 18598

The court determined that no license is required for transporting up to 2500 liters of Class-B petroleum using Bowsers, affirming the legality of such operations.

Cases Referred (1)

Login now and unlock premium legal research