Karnataka High Court
M/S Tsn Petaroleum Services vs Union Of India on 17 July, 2025
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
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WP No. 29746 of 2016
C/W WP No. 16468 of 2016
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 17TH DAY OF JULY, 2025
BEFORE
THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
WRIT PETITION NO. 29746 OF 2016 (GM-RES)
C/W
WRIT PETITION NO. 16468 OF 2016 (GM-RES)
IN W.P. NO. 29746/2016
BETWEEN
M/S. SHARMA TRANSPORTS
NO. 328, SANGEETHA BHAVAN,
TIPPU SULTHAN PALACE ROAD,
KALASIPALYAM FORT,
BANGALORE-560 002,
REPRESENTED BY ITS PROPRIETOR,
MR. SUNIL KUMAR SHARMA,
S/O. LATE SRI. D.P. SHARMA,
AGED ABOUT 45 YEARS.
...PETITIONER
Digitally signed (BY SRI. P N HEGDE., ADVOCATE)
by SHWETHA
RAGHAVENDRA
Location: HIGH AND
COURT OF
KARNATAKA 1. UNION OF INDIA
BY ITS PRINCIPAL SECRETARY,
MINISTRY OF COMMERCE AND INDUSTRIES,
UDYOG BHAVAN,
NEW DELHI-110 107.
2. CHIEF CONTROLLER OF EXPLOSIVES
"A" BLOCK, CGO COMPLEX,
5TH FLOOR, SEMINARY HILLS,
NAGPUR, MAHARASTRA-440 006.
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3. JOINT CHIEF CONTROLLER OF EXPLOSIVES
SOUTH CIRCLE,
MINISTRY OF COMMERCE AND INDUSTRIES,
PETROLEUM AND EXPLOSIVE SAFETY
ORGANISATION,
A & D WING, BLOCK-1-B,
2ND FLOOR, SHASTRI BHAVAN,
26, HADDOWS ROAD,
NUGUMBAKKAM, CHENNAI-600 006.
4. STATE OF KARNATAKA
BY ITS SECRETARY,
VIDHANA SOUDHA,
VIDHANA VEEDHI,
BANGALORE-560 001.
5. THE COMMISSIONER
DEPARTMENT OF FOOD AND CIVIL SUPPLIES,
GOVERNMENT OF KARNATAKA,
CUNNINGHAM ROAD,
BANGALORE-560 001.
6. THE DEPUTY COMMISSIONER
BANGALORE DISTRICT,
BANGALORE-01
7. DIRECTOR GENERAL &
INSPECTOR GENERAL OF POLICE
KARNATAKA STATE, NRUPATHUNGA ROAD,
BANGALORE-560 001.
.... RESPONDENTS
(BY SMT. ANUPAMA HEGDE., CGC FOR R1 TO R3;
SRI. M. SRINIVAS KUMAR., HCGP FOR R4 TO R7)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE
NATURE OF CERTIORARI, QUASHING THE LETTER/ORDER BEARING
NO.KA/PET/COMPLAINTS, DATED 29.02.2016 ISSUED BY THE 3RD
RESPONDENT AT ANNEXURE-A AND ETC.
IN W.P. NO. 16468/2016
BETWEEN
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1. M/S TSN PETAROLEUM SERVICES
NO. 58, KANAMINKE,
KENGERI HOBLI,
BANGALORE - MYSORE ROAD,
BANGALORE 560074.
REPRESENTED BY ITS PROPRIETOR
SRI. K.A. MOHAMMED SANAULLA,
AGED ABOUT 60 YEARS,
S/O. LATE. B M K AHMED
2. M/S. P. SATYANARAYANA AND COMPANY
NO. 136, S C RAOD,
SESHADRIPURAM,
BANGALORE 560020,
REPRESENTED BY ITS PROPRIETOR,
SRI. P.S. ADINARAAYANA PRASAD,
AGED ABOUT 61 YEARS,
S/O. LATE. P. SATYANARAYANA
(DELETED VIDE ORDER DATED 25.1.2018)
3. DM & SOMS
NO. 1, OLD AIRPORT ROAD,
OPP. MANIPAL HOSPITAL, KODIHALLI,
BANGALORE 560017,
REPRESENTED BY IT PARTNER,
SRI. SANTOSH K,
AGED ABOUT 47 YEARS,
S/O. D M KRISHNA
4. M/S. MATS FUEL PARK
NO. 123/2, ITPL ROAD,
KUNDALAHALLI,
BANGALORE 560037.
REPRESENTED BY ITS PARTNER,
SRI. K.C.V. MADHUKAR,
AGED ABOUT 64 YEARS,
S/O. VENKATARAMANAPPA
5. M/S. THIRUMALA SERVICE STATION
NO. 233, A, BOMMASANDRA INDUSTRIAL AREA,
HOSUR ROAD,
BANGALORE 560099.
REPRESENTED BY ITS PROPRIETOR,
SRI. A.J. RANGANATH,
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AGED ABOUT 51 YEARS,
S/O. LATE. A.L. JAYARAJ.
6. M/S. VINOD AUTO SERVICE
NO. 1, WHEELER ROAD,
BANGALROE 560005.
REPRESENTED BY ITS PARTNER.
SRI. DIWAKAR. N,
AGED ABOUT 48 YEARS,
S/O. NANJAPPA.
7. M/S. SANTRUPATHI FUELS
MAHAKAVI KUVEMPU ROAD,
OPP. HARISHCHANDRA GHAT,
BANGALORE 560043.
REPRESENTED BY ITS PROPRIETOR,
SRI. RAVIRAJ SHETTY,
AGED ABOUT 48 YEARS,
S/O. JAGANNATHA SHETTY.
8. M/S. CHANDERS
NO. 104,
KIADB INDUSTRIAL AREA,
BOMMASANDRA,
JIGANI LINK ROAD,
BANGALORE 560105.
REPRESENTED BY ITS PARTNER,
SRI. N. NATRAJ,
AGED ABOUT 68 YEARS,
S/O. NARAYANASWAMY
9. M/S VIJAY GASOLINE
NO. 6/1C, OUTER RING ROAD,
DODDANEKKUNDI,
BANGALORE 560037.
REPRESENTED BY ITS PROPRIETOR,
SRI. VIJAY KUMAR,
AGED ABOUT 66 YEARS,
S/O. LATE. N.A. SEETHARAM REDDY.
10.SHRI. LAKSHMI VENKATESHWARA FUELS
NO. 122/1, 123,
ANEKAL TO ATTIBELE ROAD,
ATTIBELE,
BANGALORE 562107.
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REPRESENTED BY ITS PROPRIETRIX SMT. MANJULA,
AGED ABOUT 28 YEARS,
W/O. SRI. RAMESH
11.M/S. GURUKRUPA AUTO SERVICE
OUTER RING ROAD,
BTM LAYOUT,
BANGALORE 560068.
REPRESENTED BY ITS PARTNER,
SRI. ANAND KUMAR S,
AGED ABOUT 48 YEARS,
S/O. T.K. SWAMIAPPAN.
12.M/S. PRIYADARSHINI SERVICE STATION
145-B, BOMMASANDRA INDUSTRIAL AREA,
HOSUR ROAD,
BANGALORE 560099.
REPRESENTED BY ITS PROPRITOR,
SRI. B N NAGARAJA REDDY,
AGED ABOUT 55 YEARS,
S/O. SRI. B C NARAYANA REDDY.
13.M/S. GURUKRUPA SERICE STATION
ROYAN CIRCLE,
CHAMRAJPET,
BANGALORE 560018.
REPRESENTED BY ITS PARTNER,
SRI. ARUL KUMAR. S.
AGED ABOUT 44 YEARS,
S/O. T.K. SWAMIAPPAN
14.M/S. VENKATESWARA & CO
58, HOSUR MAIN ROAD,
MADIWALA,
BANGALORE 560068.
REPRESENTED BY ITS PARTNER,
SRI. R. SRINIVASAN,
AGED ABOUT 64 YEARS,
S/O. LATE. P.M. RAMALINGAM CHETTIAR,
15.M/S. DEEPA SERVICE STATION
NO. 4/3, BYPASS KUNIGAL CIRCLE,
NH-1, TUMKUR ROAD,
NELAMANGALA,
BANGALORE 562123,
REPRESENTED BY ITS PARTNER,
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SRI. R. RAGHAVENDRA,
AGED ABOUT 37 YEARS,
S/O. RACHE GOWDA
16.M/S SEETHA FUELS INC
C A PLOT , 4TH PHASE,
KIADB INDUSTRIAL AREA
BOMMASANDRA JIGANI LINK ROAD,
BANGALORE - 560099
REPRESENTED BY ITS PROPRIETOR
SRI P ANANTHARAJA GOWDA
AGED ABOUT 71 YEARS
S/O DODDAIAH GOWDA
17.M/S NANDHINI FUEL STATION
53, AREKEMPANAHALLI
OPP 10TH CROSS
WILSON GARDEN
BANGALORE - 560027
REPRESENTED BY ITS PROPRIETRIX
SMT M B SHILPA AGED ABOUT 35 YEARS
D/O M S BALAGANGADHAR
18.M/S NANDI KISAN SEVA KENDRA
BUDIGERE, DEVANAHALLI TALUK,
BANGALORE DISTRICT-560001
REPRESENTED BY ITS PROPRIETOR
SRI P NAGARAJ
AGED ABOUT 70 YEARS
S/O PUTTARAJAPPA
19.M/S INFANT TRAVELS PVT LTD
OUTER RING ROAD,
NAYANDHALLI
BANGALORE - 560085
REPRESENTED BY ITS MANAGING DIRECTOR
SRI JOHN LOUIS
AGED ABOUT 45 YEARS
S/O LOUIS
20.SRI VARSHATH
E-1/7, SYNDICATE BANK COLONY
AREKERE, BANNERGHATTA MAIN ROAD
BANGALORE - 560076
REPRESENTED BY ITS PROPRIETRIX
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SMT P SUDHA DEVI
AGED ABOUT 56 YEARS
W/O B S NARASIMHAIAH
21.UNITED PETROLEUM FORUM
BUREAU OF PETROLEUM SERVICES
RESEARCH AND DEVELOPMENT SERVICES WING
NO 25, 11TH A MAIN,
5TH BLOCK, JAYANAGAR,
BENGALURU-560011
REPRESENTED BY ITS PRESIDENT
SRI K A MOHAMMED SANAULLA
...PETITIONERS
(BY SRI. SIDDHARTH SUMAN., ADVOCATE FOR
P1, P3, P11, P13, P14, P16 & P21)
AND
1. UNION OF INDIA
BY ITS PRINCIPAL SECRETARY
MINISTRY OF COMMERCE AND INDUSTRY
UDYOG BHAWAN
NEW DELHI - 110017
2. CHIEF CONTROLLER OF EXPLOSIVES
A BLOCK, CGO COMPLEX
FIFTH FLOOR,
SEMINARY HILLS
NAGPUR (MAHARASHTRA) - 440006
3. JOINT CHIEF CONTROLLER OF EXPLOSIVES
SOUTH CIRCLE,
MINISTRY OF COMMERCE AND INDUSTRY
PETROLEUM
AND EXPLOSIVES SAFETY ORGANISATION
(PESO)
A & D WING BLOCK 1-B
2ND FLOOR
SHASHTRY BHAVAN
26 HADDOWS ROAD,
NUGUMBAKKAM
CHENNAI - 600006
4. STATE OF KARNATAKA
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BY ITS CHIEF SECRETARY
VIDHANA OSUDHA
VIDHANA VEEDHI
BANGALORE - 560001
5. THE COMMISSIONER
DEPARTMENT OF FOOD AND CIVIL SUPPLIES
GOVERNMENT OF KARNATAKA
CUNINGHAM ROAD,
BANGALORE - 560001
6. THE DEPUTY COMMISSIONER
BANGALORE DISTRICT
BANGALORE-560001.
7. THE DIRECTOR GENERAL AND
INSPECTOR GENERAL OF POLICE
KARNATAKA STATE
NRUPATHUNGA ROAD,
BANGALORE - 560001
8. THE COMMISSIONER OF POLICE
BANGALORE CITY POLICE
BANGALORE
.... RESPONDENTS
(BY SMT. ANUPAMA HEGDE., CGC FOR R1 TO R3;
SRI. M. SRINIVAS KUMAR., HCGP FOR R4 TO R8)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT 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 3RD
RESPONDENT (I.E. ANNEXURE-D) AS ARBITRARY, ILLEGAL AND
UNJUST AND ETC.
THESE WRIT PETITIONS COMING ON FOR ORDERS AND
HAVING BEEN RESERVED FOR ORDERS ON 07.07.2025, THIS DAY,
THE COURT PRONOUNCED THE FOLLOWING:
CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
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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 3rd 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 3rd 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
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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
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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.
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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 hindrance, as
well as the operation of the heavy earth-moving
equipment without any hindrance.
7. The Joint Chief Controller of Explosives, South
Circle, Chennai, having received certain complaints,
vide his letter dated 29.02.2016 had written to the
OMC's Stating that there are numerous complaints
which have been received relating to filling of
petroleum products to unapproved Bowsers from the
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retail outlets and those Bowsers delivering petroleum
products to industrial premises like IT parks, road
making machines, on site and on road supply to the
vehicles. Such delivery of petroleum products to the
Bowsers by the retail outlet is against the license
issued to the retail outlets in form Roman 14 of
Petroleum Rules 2002, where it is clearly mentioned
that the license is granted to store petroleum in tank
or tanks in connection with pump outfit for fuelling
motor conveyances and in that background that it
was stated that this was viewed seriously by the
organization and the OMC were advised to stop filling
of petroleum products to the Bowsers from the retail
outlets failing which penal action would be taken
towards suspension/cancellation of licenses granted
in Form-XIV of the Petroleum Rules, 2002.
8. The petitioners, as also the OMC's had replied to the
same, as also addressed various correspondences to
the Chief Secretary, Commissioner, Department of
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Food and Supplies, the Chief Secretary, Government
of Karnataka, etc., despite which, the respondents
had indicated that they would take action on the
basis of the letter dated 29.02.2016. It is in that
background that the petitioners are before this court
seeking for the aforesaid reliefs.
Facts in WP 29746/2016:
9. The petitioner claims to be in the business of catering
fuels and lubricants in retail petroleum outlets, under
a valid license in Form-XIV issued on Petroleum
Rules 2002. The petitioner also claims that the
petitioner is operating transport services having
various buses etc. in its fleet and as such, the
petitioner also uses Bowsers for the purpose of
transport of HSD from the retail outlet to fill up the
tanks of the buses owned by the petitioner, as well
as to supply petroleum to its customers who run
diesel generating sets etc. The petitioner in this
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matter is also aggrieved by the very same letter and
has sought for the reliefs as extracted above.
10. Sri.Siddharth Suman, learned counsel for the
petitioner in W.P. No.16468/2016 would submit that,
10.1. The Bowsers are basically storage tankers with
additional safety protection in terms of the inlet
and outlet being controlled by instruments
which are kept under lock and key. There are
various diesel generator sets used in apartment
complexes, IT parks, industries, etc., most of
which are backup generators which become
operational in the event of a power cut or the
like. These generators fixed to the earth and
consume HSD in hundreds of litres and it is in
that background that those generators cannot
be brought to the retail outlet for filling up nor
can the storage tanks of those generator be
filled by using jerry cans etc., which have a
lower capacity of 50 to 100 litres and as such,
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HSD is transported using Bowsers which would
have about 2000 litre capacity with each
receptacle in the Bowser having capacity not
exceeding 1000 litres inasmuch as each Bowser
having a capacity of 2000 litres there being 3
receptacles evenly divided, the capacity of each
receptacle is about 650 to 675 litres the diesel
in HSD is filled up in these Bowsers and
transported to the site where the generator is
located, the storage tanks of the said generator
are filled up using the Bowser for which
payments are made by the purchaser.
10.2. In so far as storage of HSD is concerned, in
those storage tanks the purchaser has obtained
necessary licenses from the explosives
department and as such, is in compliance with
the applicable laws.
10.3. Secondly, he submits that there is large earth-
moving equipment which are not motorable on
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the road, which is used in mines, road making,
areas where land is to be levelled, etc. Again,
these earth-moving equipment are not capable
of being transported to the retail outlet for the
purpose of filling up with HSD. HSD is supplied
to these earth-moving equipment using
Bowsers so that the earth-moving equipment
can be kept running, which has an
advantageous effect towards the economy.
10.4. His submission is that there are different kinds
of Bowsers with different capacities. Earlier
even as regards the supply of HSD to the diesel
generator sets and earth moving equipment,
the same was done using jerry cans and or
drums. There is no prohibition for filling up of
jerry cans and drums, when the same is done
in large numbers, it is not safe, nor efficient,
and it is for this reason that Bowsers have been
used.
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10.5. In the license under Form-XIV, there is no
restriction on filling up of the Bowsers or such
similar equipment, What is only required in
terms of Clause (16) of the license is that
petroleum is to be filled from the tank or the
pump into a container or receptacle which is
securely clamped or fitted to a motor vehicle.
The tank on the Bowser is fitted to the motor
vehicle and is securely clamped to the chassis
of the motor vehicle. As such, the safety
restriction under Clause (16) of the license has
been adhered to by the petitioners.
10.6. He submits that in terms Section 7 of the
Petroleum Act 1934, no license is needed for
transport or storage of limited quantities of
petroleum of Class-B or Class-C, HSD coming
under Class-B, in terms of Subsection (i) of
Section 7, no such license is required if the
quantity does not exceed 2500 litres and none
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of it is contained in a receptacle exceeding
1000 litres in capacity. He therefore submits
that there being no license which is required for
this purpose, it is only if a Bowser has a
capacity of more than 2,500 litres that a license
under Section 7 is required.
10.7. On this ground he submits that the respondents
could not have taken exception to the above
activities, the respondents ought to have
considered that the above activities are in the
interest of the economy of the country and
being so, ought not to have threatened the
cancellation of the license issued.
11. Sri.P.N.Hegde, learned counsel for the petitioner in
W.P. No.29746 of 2016, makes a similar submission.
Additionally, he submits that Bowsers are used by
the petitioner in that matter for the purpose of filling
up of the HSD tanks of the buses owned by the
petitioners. His submission is that many of the retail
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outlets in the city being located in densely populated
areas, the size of the retail outlets being small, it is
very difficult for buses to be brought into the retail
outlet for the purpose of filling up HSD and it is for
that reason that HSD is taken, via a Bowser to be
filled in the tanks of the buses. This he submits,
takes away congestion on the roads and as also
brings about efficiency in running of the transport
business of the petitioner.
12. Therefore, he submits that both practically the above
being efficient means and legally there being no
prohibition for using such a Bowser having a capacity
of less than 2500 litres, this court ought to intervene
and allow the above provisions as sought for.
13. Ms. Anupama Hegde, learned Central Government
Counsel for respondents No.1 to 3 submits that there
is no provision for a retail outlet to vend to a Bowser.
A retail outlet can only vend to a motor vehicle and
or to small jerry cans, drums, or the like. A Bowser,
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being a vehicle used for transportation of HSD, is not
making use of HSD for running of the Bowser, but for
the transport thereof, which is not permissible in a
license issued under Form-XIV. She submits that this
activity not being permitted is prohibited and
therefore the respondents were proposing to take
action against the petitioners in both the matters on
account of supply of HSD to such Bowsers and in that
background, she submits that no grounds being
made out, the reliefs sought for by the petitioners in
both the matters being contrary to the applicable
law, both the petitions are required to be Dismissed.
14. Heard Sri.Siddharth Suman, learned counsel for the
petitioner in W.P. No.16468/2016 and Sri.P.N.Hegde,
learned counsel for the petitioner in W.P.
No.29468/2018, Smt.Anupama Hegde, learned
Central Government Counsel for respondents No.1 to
3 in both the petitions and Sri.M.Srinivas, learned
counsel for respondents No.4 to 8 in W.P.
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No.16468/2016 and for respondents No.4 to 7.
Perused papers.
15. The short point that would arise for consideration is.
Whether under law there is a requirement of any
license for supplying HSD to a Bowser, and or
whether there is any prohibition under law for a retail
outlet to supply petroleum products to a Bowser?
16. The nature of a Bowser has been detailed
hereinabove, Photographs thereof have also been
produced along with the petition in WP
No.16468/2018. Those photographs indicate the
manner in which the browser is constructed, the
manner in which it carries HSD, the filling up and
dispensation of HSD, as also as regards the location
where HSD is dispensed to.
17. Exfacie, it is clearly and categorically seen that using
of Bowsers brings about an efficiency inasmuch as a
reasonable quantity of HSD, up to an extent of 2000
litres is transported at one go in a safe and secure
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manner to the location where HSD is to be delivered
or dispensed. As indicated by both Mr.Siddharth
Suman and Mr. P.N.Hegde, learned counsels, these
locations are related to diesel generating sets, earth-
moving equipment, buses, transport vehicles, etc.
18. It cannot be doubted that diesel generating sets are
required in our country, especially given the current
power situation and deficit. Many of the industries
and offices run on generators for a large part of the
day. The use of a diesel generator is permitted by
obtaining certain licenses and or permissions. The
use of such generators is subject to the conditions
imposed under such licenses, and the storage of HSD
is also subject to such conditions. When the usage of
the diesel generator is not prohibited, it cannot be
said that diesel cannot be supplied to such
generators.
19. Similarly, heavy earth-moving equipment like JCBs,
Poclains deployed at the site, cannot come to a retail
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outlet for the purpose of being filled up with HSD or
the like. Buses and trucks today are also very large.
Many of them have double or Multi axles, it is not
possible for these buses and trucks to also enter a
retail outlet for the purpose of filling up with HSD.
These are all aspects which can be taken judicial
note of. Thus, the use of Bowser, the practicality of
it, as also the efficiency that it brings about cannot
be doubted.
20. What would have to be now looked at is whether
there is a prohibition on the usage of the browser or
any license which is required for the usage of a
browser? Admittedly, the petitioners have a license
in terms of Form-XIV of the Petroleum Rules, 2002
and have been running their outlet without any let or
hindrance. It is only on account of the dispensation
of HSD to a browser that the present matter has
arisen.
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21. There is no restriction imposed under the said license
as regards the quantum of HSD that could be
dispensed by the retail outlet. Thus, there is no
prohibition under the license for dispensing of 2000
litres to a particular customer or a particular
browser. Now, what is to be seen is whether there is
a prohibition on the transport of 2000 litres of HSD
by using a Bowser.
22. Section 7 of the Petroleum Act, 1934 is reproduced
hereunder for easy reference:
7. No license needed for transport or
storage of limited quantities of petroleum
Class B or petroleum Class C.-
Notwithstanding anything contained in this
Chapter, a person need not obtain a license for
the transport or storage of-
(i)petroleum Class B if the total quantity in his
possession at any one place does not exceed two
thousand and five hundred litres and none of it is
contained in a receptacle exceeding one
thousand litres in capacity; or
(ii)petroleum Class C if the total quantity in his
possession at any one place does not exceed
forty-five thousand litres and such petroleum is
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transported or stored in accordance with the
rules made under section 4.
23. In terms of Section 7, it is clear that a person need
not obtain a license for transport or storage of
Petroleum Class-B if the total quantity in his
possession at any one place does not exceed 2500
litres and none of it is contained in a receptacle
exceeding 1000 litres in capacity. Thus, it is only if
there is an excess of 2500 litres which is to be stored
or transported that a license would be required.
Section 7, containing a non-obstante clause, would
override anything else contained in the Act. In that
view of the matter, I am of the considered opinion
that it is legally permissible for a person to transport
and or store up to 2500 litres of HSD, which is a
Class-B petroleum product, by using a browser
without the requirement of any license. No license
being required, it cannot be said that there is a
prohibition for the retail outlets to vend to a Bowser.
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24. The complaints, if any, received by the respondents
cannot be a cause to stop a legitimate business of
the petitioners, which business brings about
efficiency and addresses a serious issue in the
running of the city.
25. Looked at from another angle, if the demand of the
respondents are accepted, then the owner or a
person running a generator set would have to
transport HSD to the generator set using jerry cans
or drums which are not as safe as a Bowser and
therefore, there could be a mishap at the time of
filling or the time of transport, as also at the time of
dispensation.
26. Similar would be the situation as regards heavy
earth-moving equipment, if Bowsers are not used,
the earth-moving equipment would have to come to
the retail outlet, which is also not practically possible.
As regards filling up of the tanks of the buses and
heavy transport vehicles if those were to enter a
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retail outlet in a city, the entire retail outlet would be
blocked for a large amount of time. The entry and
exit of the vehicle would also take a large amount of
time.
27. Though retail outlets have been provided at the
depots of the Road Transport Corporations, private
transporters cannot avail of such retail outlets and as
such, would have to come to the existing retail
outlets. This would cause an undue burden on the
road infrastructure of the city, resulting in Bangalore
being more vilified for traffic congestion.
28. Thus, looked at from any angle, there is neither a
prohibition nor a license which is required to be
taken for dispensing of Petroleum product up to
2,500 litres belonging to Class-B category to a
Bowser, as also taking account the practical benefits
by usage of such browsers. I am of the considered
opinion that the demands made by the respondents
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are completely unconscionable and contrary to the
applicable law.
29. In that view of the matter, I pass the following:
ORDER
i. Both the petitions are allowed.
ii. A certiorari is issued, the letter dated 29.02.2016 bearing No.KA/Pet/Complaints at Annexure-D issued by respondent No.3 in both the petitions is quashed.
iii. A mandamus is issued directing the respondents not to obstruct the petitioners in both the matters from running their legally permissible business.
SD/-
(SURAJ GOVINDARAJ) JUDGE LN List No.: 1 Sl No.: 77