Madhya Pradesh High Court
Mahendra Pratap Hasija And Ors. vs Union Of India (Uoi) And Ors. on 3 July, 1987
Equivalent citations: AIR 1987 MADHYA PRADESH 274, (1987) EFR 609.2 1987 FAJ 524, 1987 FAJ 524
JUDGMENT P.D. Mulye, J.
1. The petitioners, who as dealers are selling petrol and high speed diesel in their petrol pumps on the basis of the license obtained by them, have in this petition filed under Article 226 of the Constitution of India, raised a short but interesting question as to whether whenever the Union of India increases the retail sale price of products like petrol and high speed diesel, the respondent No. 2 the State Government of M.P. and respondent No. 3 the Collector, district Indore have got the power and authority to direct these dealers to sell the existing stock of petrol and-high speed diesel at the same rate prior to its increase from the day the price' increase comes into effect. '
2. The short facts giving rise to this petition, which are no longer in dispute may be stated, in brief, thus: All the petrol dealers of Indore, including the petitioners are the members of Indore Petrol Dealers Association, which is a Member of the M.P. Petrol Dealers Association. The Indore Petrol Dealers Association is also a member of the Federation of All India Petroleum Traders.
3. That all the Oil Companies in India, namely : (1) The Indian Oil Corporation Limited, (2) Hindustan Petroleum Corporation Limited, (3) Bharat Petroleum Corporation Limited and (4) Indo-Burma Petroleum Co. Limited are Government corporations wholly owned by respondent No. 1 Union of India. The selling prices of petrol and high speed diesel etc., are specified by these oil Companies, but are regulated and controlled uniformly by the respondent No. 1. Petrol and high speed diesel are declared as essential commodities under the Essential Com-modities Act, 1955 which is administered by respondent No. 2 through the agency and instrumentality of the respondents Nos. 3 and 4.
4. Further, according to the petitioners, the respondent No. 1, namely the Union of India at any time suddenly announces the change in the selling prices of petrol, high speed diesel etc., which increase takes effect immediately i.e. from the mid-night of the day of announcement.
5. That whenever a change in selling prices of petrol, high speed diesel etc., is announced admittedly the petrol dealers as well as the inland depots of the oil Companies always have some stock of the products with them and the change in prices applies to the existing stocks as well as the fresh stocks as the petitioners are governed by the provisions of the M.P. Motor Spirit and High Speed Diesel Oil (Licensing and Control) Order, 1980, according to which these petitioners have to obtain a license in the prescribed form 'B' of which condition No. 6 is as follows : --
"6. The licensee shall not -
(i) enter into any transaction involving purchase, sale, or storage for sale of oil in a speculative manner prejudicial to the maintenance and easy availability of supplies of oil in the market.
(ii) withhold from sale oil ordinarily kept for sale.
(iii) sell or offer to sell in any locality oil at a price higher than the price fixed for sale of oil in such locality by the Central Government or by the State Govt. in pursuance of power conferred by law or by the producer thereof."
6. Admittedly petrol and diesel (HSD) is included in the M.P. Essential Commodities (Exhibition of Prices and Price Control) Order, 1977, according to which these petrol dealers have to exhibit the price list of these products and are required to sell the same at that rate.
7. This petition relates to the price increase of Petrol and high speed diesel as per Annexure-A dated 15-2-1983. It is also not in dispute that even thereafter there has been an increase in the price of these products in the same fashion almost every year.
8. The respondent No. 2 through the Secretary, Department of Food and Civil Supplies sent a wireless message dated 15-2-1983 Annexure-B to all the Collectors intimating the price increase and laying down that the stocks delivered by the oil Companies to the dealers prior to 14/15thFebruary midnight will continue to be sold at the old prices.
9. The grievance of the petitioners has been that as they are bound to sell these products at a fixed price, they are entitled to sell the existing stock of such products which is lying with them on the day of the price increase of these products, at the increased rate and not at the old rate and that the respondent No. 2 has no right or authority to direct the Collectors calling upon them to compel these petrol dealers to sell the existing stock of these products to the customers at the old rate prior to its increase. They have, therefore, prayed to quash the impugned order/direction Annexure-B given by the Secretary, Food and Civil Supplies, Govt. of M.P., Bhopal to all the Collectors.
10. The respondent No. 1, namely the Union of India has not seriously challenged or disputed the petitioners' contention nor they have controverted the petitioners' averment that on the basis of such price increase all over the country except in the State of M.P. the petrol pump dealers have started charging the increased price as determined by the Oil Companies and approved by the Union of India as per announcement made by them in this regard.
11. The respondents Nos. 2 to 4 in their returns have submitted that-the dealer is bound to comply with all the directions issued under clause 10 of the said Control Order in regard to purchase, sale and storage for sale and disposal of oil. Therefore, since the direction of the State Government was with regard to the sale and/or disposal of the oil, irrespective of the price announcement by the Union of India, namely the respondent , No. i, the petitioners are bound to observe and comply with all the directions issued by the State Government under the provisions of the said Control Order. That the said direction which has been issued by the State Government is also covered by Clause 3(5) of, the said Control Order. Thus, in short, their contention has been that these directions issued by these respondents are binding on the petitioners and in case of violation of these directions action can be taken against them under the provisions of the Essential Commodities Act.
12. In order to appreciate the rival contentions, it would be useful to refer to the relevant provisions of the said Licensing and Control Order of 1980 :
"3. Regulation of sale of and supply of motor spirit and high speed diesel oil,--(1) Every dealer shall display a stock-cum-price board at a prominent place of his business premises showing the opening balance of oil of the day and the sale price per liter.
(2) Subject to the provisions of sub-clause (5) no dealer having stocks of oil at his business premises shall, without sufficient cause, refuse to sell oil to any customer on any day during working hours or compel any customer to purchase any other article as condition of sale of oil.
Explanation.-- (i) The possibility of obtaining a higher price at a later date shall not be deemed to be a sufficient cause for the purpose of this sub-clause.
XX XX XX XX XX (5) Every dealer and every oil company shall comply with such directions as may be given to him in writing by the authorised officer in regard to purchase, sale or storage for sale of oil and in regard to the language and the manner in which accounts thereof shall be maintained and also in regard to the submission of stock returns.
XX . XX XX XX XX
10. Compliance of the direction.-- The licensee shall comply with any direction that may be given to him from time to time by the authorised officer or the licensing authority or the Director as the case may be by general or special order in writing in regard to purchase, sale and storage for sale and disposal of oil."
13. A bare reading of these provisions on which the learned Government Advocate appearing for the respondents Nos. 2 to 4 has placed reliance would indicate that they nowhere give any such power to the State Government to compel the petrol dealers to sell the existing stock of petrol or high speed diesel oil at the old rates and not at the increased rates on the day the increase in price comes into effect as the said order is absolutely silent so far as this point is concerned. The submission of the learned Government Advocate that the 'power to give directions' would also include the power to compel the petrol dealers not to sell the existing stock at the increased price but to sell the same at the old price, cannot, therefore, be easily accepted. If this submission of the learned Government Advocate is accepted, it would create an anomalous position in the sense that from the date when there is a price increase if the dealer is in possession of old stock as well as new stock, he will have to sell the same products at different rates. That apart these respondents have not placed on record any such order passed by the State Government nor any such order that the Collectors have been appointed as the 'authorised officers' as defined under the said Order. Beside condition No. 6 of the license quoted above bars the licensee from selling the oil any locality at a price higher than the price fixed for the sale of oil in such locality by the Central Government as in the present case admittedly the price of petrol or diesel oil has not been fixed by the State Government. We are, therefore, not persuaded to agree with the submission of the learned Government Advocate that the power to give directions to the dealers also includes the power to direct or compel the petrol dealers to sell the existing stock of petrol or diesel oil lying with them at the old rate and not at the increased rate from the day the price rise comes into effect.
14. It is also interesting to note that the learned counsel for the Union of India was also not in a position to controvert the stand taken and the submission made by the learned counsel for the petitioners challenging the right and authority of the State Government to pass the impugned order Annexure-B.
15. In the result this petition succeeds and is allowed with no order as to costs. The impugned order dated 15-2-1983 (Annexure B) is quashed and set aside. The amount of security deposit, on verification be returned to the petitioners.