THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI WRIT PETITION NO.1822 OF 2025

O R D E R

In this writ petition, the petitioners are seeking a Writ of Mandamus declaring the initiation of the proceedings under Section 6-A of the Essential Commodities Act and also the order dt.09.01.2025 passed by the 2^nd respondent in 6-A Case No.A7/154/CS/2024 confiscating the distillate base oil of 12,000 litres and 29.920 metric tonnes and imposing penalty of Rs.1,00,000/- on each of the tankers bearing No.TS 07 UM 9499, TS 09 UM 9899 and GJ 12 BV 7082, even though the seized stock is not an essential commodity and does not come under the purview of the Telangana State Petroleum Products (Licensing and Regulation of Supplies) Order, 1980, as illegal, arbitrary and as violative of principles of natural justice and without jurisdiction and consequently to set aside the same and to direct respondents No.2 to 4 authorities to release the seized stock of the distillate base oil along with the tankers and to pass such other order or orders.

2. Brief facts leading to the filing of the present Writ Petition are that the 1^st petitioner is a trader in purchase and sale of distillate base oil from different companies throughout India in tankers and sells the same in wholesale to the retailers and the 2^nd petitioner is the owner of the two tankers bearing Nos. TS 07 UM 9499 and TS 09 UM 9899. It is submitted that the 1^st petitioner was transporting the distillate base oil through the tankers belonging to the 2^nd petitioner and the entire transactions are being done through bills and GST invoices for purchase and sale. It is stated that the 3^rd respondent has filed a complaint before the 4^th respondent without verifying the actual facts that the 1^st petitioner is storing diesel in its business premises illegally and on the basis of such a complaint, FIR No.172 of 2024 was registered and the quantity of 12,000 litres of distillate base oil and also the vehicles belonging to the 2^nd petitioner and one Mr. Kanji, were seized and thereafter, the proceedings under Section 6-A of the Essential Commodities Act were initiated and also concluded confiscating the seized stock and levying penalty on the seized vehicles. Challenging the same, the present Writ Petition is filed.

3. Learned counsel for the petitioners submitted that distillate base oil is not an essential commodity and therefore, the provisions of the Essential Commodities Act cannot be invoked in this case and the order of the 2^nd respondent is without any jurisdiction. He also referred to the findings in the lab reports of the respective officers that the confiscated material is not high speed diesel and further that the 1^st petitioner is not resorting to any manufacturing activity and that it is only a trader. It is therefore submitted that without verifying any of the facts, the subject order has been passed.

4. The 3^rd respondent has filed a counter affidavit and the learned Government Pleader for Civil Supplies has relied upon the averments in the counter affidavit. He submitted that the 1^st petitioner is using the distillate base oil for adulteration of diesel and therefore, the issue comes within the purview of the Essential Commodities Act. He submitted that 6-A proceedings are appealable under Section 6-C of the Act and therefore, the Writ Petition is not maintainable at this stage.

5. Having regard to the rival contentions and the material on record, this Court finds that the issue to be decided in this case is whether distillate base oil which has been intercepted, seized and confiscated by the authorities, is an essential commodity and whether it would come within the purview of the Essential Commodities Act. It is noticed that on the complaint given by the 3^rd respondent, the 4^th respondent has intercepted and seized the vehicles containing the distillate base oil. It is not the case of the respondents that the petitioners claimed that the stock in the tankers was petroleum product or diesel and