IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY SIXTH DAY OF JUNE TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE GODA RAGHURAM WRIT PETITION NO : 12738 of 2008 Between: M/s. Maruthi Filling Station, Alganur Village, Thimmapur Mandal, Karimnagar District, rep. by its Priprietor: M.Ramakrishna Rao, S/o.M.Kamalakar Rao R/o.Alganur Village, Thimmapur Mandal, Karimnagar District. ..... PETITIONER AND 1 The District Collector (Civil Supplies), Karimnagar District. 2 The Joint Collector (Civil Supplies), Karimnagar, Karimnagar District. 3 The District Supply Officer, Karimnagar, Karimnagar District. 4 The Tahsildar, Thimmapur Mandal Karimnagar District. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue an appropriate writ or order or direction more particularly one in the nature of Writ of Mandamus declaring the proceedings dt. 16.6.2008 in G3/751/08, issued by the 1st respondent herein whereby directing the 4th respondent to sell the petroleum products such as Petrol (Power) - 5787 Ltrs., Diesel (Ordinary) - 7528 Ltrs., Diesel (Turbo) - 22234 Ltrs., worth about Rs.15,33,163/- and remit the sale proceedings in the Government account and also the action of the respondents in stopping sales of petroleum products from the petitioner outlet since 5.6.2008 is illegal, arbitrary and without authority of law and consequently direct the respondents to allow the petitioner to carry on the sales of petroleum products from the retail outlet i.e., M/s. Maruthi Filling Station, Alganur Village, Thimmapur Mandal, Karimnagar District and pass such other order or orders. Counsel for the Petitioner:MR.A.PRABHAKAR RAO Counsel for the Respondent No.: GP FOR CIVIL SUPPLIES The Court made the following: THE HON'BLE MR JUSTICE GODA RAGHURAM WRIT PETITION NO : 12738 of 2008 ORAL ORDER: The writ petition is directed against the order of the first respondent bearing reference No.G3/751/08 dated 16-06-2008 whereby and whereunder in purported exercise of power under Section 6-A (2) of the Essential Commodities Act, 1955 (for short ‘the Act’), the petroleum stocks of 5787 liters of Petrol (Power); 7528 liters of Diesel (Ordinary) and 22,234 liters of Diesel (Turbo) in all valued at Rs. 15,33,163-00 have been directed to be taken possession of by the 4th respondent who is directed to dispose of the same under the personal supervision of the Mandal Revenue Inspector and remit the sale proceeds in the Government account. The above commodities which are controlled by the A.P Petroleum Products (L & RS) Order, 1980 (for short ‘Control Order’) were seized on allegations of contravention of the provisions of the said Control Order, details of contravention have been enumerated in the order dated 16- 06-2008. Sri Subba Reddy, learned senior counsel appearing for the petitioner would submit that as the respondents have already assessed the value of the seized commodities at Rs.15,33,163-00; and as the petitioner is willing to furnish a bank guarantee for its value, the impugned order may be set aside pro tanto and the respondents be directed to release the seized stocks above enumerated to the care of the petitioner on the petitioner furnishing a bank guarantee so as to enable the petitioner to pursue its further business. The offer of the petitioner is fair and equitable. Proceedings under Section 6-A of the Act are pending. The petitioner’s liability, if any, would be determined at such proceedings and the maximum liability would be the confiscation of the value of the seized commodities. Since the first respondent has quantified and determined the value of the seized commodities at Rs.15,33,163-00, the proper regulation of the essential commodities would not be in jeopardy, if the respondents are directed to release the seized commodities to the petitioner on the petitioner furnishing a bank guarantee towards the value of the seized commodities as determined in the first respondent’s proceedings dated 16-06-2008. On the analysis above, the writ petition is disposed of directing the first respondent to recall the order dated 16-06- 2008. The first respondent shall release the Petrol (Power); Diesel (Ordinary) and Diesel (Turbo) seized from the petitioner filling station in its favour on the petitioner furnishing a bank guarantee for a sum of Rs.15,33,163-00. The respondents shall not interfere in the further pursuit of the business of the petitioner, provided the petitioner continues to have a subsisting entitlement for pursuing such business. No costs. ____________________ GODA RAGHURAM, J Dated: 26-06-2008 Pvks/*