Case: State Of U.P.  Vs. Daulat Ram Gupta

the State government or Licensing Authority under sub-clause (6) of Clause 16 of the Statutory Order, it is necessary to look into the provisions of sub-clause (6) of Clause 16 of the Statutory Order which runs as under: "(6) Every dealer shall comply with the general or special directions not inconsistent with this order that may be given to him in writing by the State Government, the Commissioner, Food and Civil Supplies or the Collector for the purpose of giving effect to the provisions of this Order and any contravention of such directions shall be deemed to a contravention of this Order." 14. A perusal of sub-clause (6) shows that it enables the making of an order or issuing of direction by the executive. In exercise of that power, the State government, the Commissioner, Food and Civil Supplies or the Collector are empowered to issue a general or special direction to any dealer, which is not inconsistent with the provisions of the Statutory Order, only for giving effect to the provisions of the Statutory Order. Thus, there are two restrictions on the power of the State government or a Licensing Authority while issuing a general or special direction - firstly, such a direction should not be inconsistent with the Statutory Order and secondly, such direction can be issued only for purposes of giving effect to the provisions of the Statutory Order. In that view of the matter any direction issued under sub-clause (6) of Clause 16 must show that it complies with the description of delegation of power to issue directions. 15. In Blacks Law Dictionary the expression "inconsistent" means lacking consistency; not compatible with. Viewed in this light, the nature and extent of power of the State government or a Licensing Authority possessed under sub-clause (6) is to issue directions only in conformity with the Statutory Order. In other words, the direction so issued by the State government or Licensing Authority must be compatible with the provisions of the Statutory Order. The State Govt. or the Licensing Authority in the exercise of delegated powers to issue direction cannot make provisions which are consistent with the Statutory Order. Since the power to issue directions by the State government or any other specified authorities must not be inconsistent with the Statutory Order, the same must be held to be beyond the enabling provisions of the Statutory Order. It must be remembered that the power to issue directions is derived from sub-clause (6) of Clause 16 of the Statutory Order and a delegatee on whom such a power is conferred is required to act within the frame work of the authority conferred by the Statutory Order. Since the direction issued by the Licensing Authority that the licence of the respondent shall not be renewed on the premise that his place of business falls within a radius of 5 kms. of retail outlet of a government run oil company being not in conformity with the provisions of the Statutory Order, it must be held to be inconsistent to the provisions of the Statutory Order. 16. Coming to the second restriction on the power of the State government or the specified authorities, the provisions empowering them to issue directions to dealers could be exercised only to give effect to the provisions of the Statutory Order and further to effectuate the object behind the Statutory Order if the object is discernable in the Statutory Order. The nature of directions which could be issued under the enabling provisions contained in sub-clause (6) of Clause 16 of the Statutory Order, is only for purposes of giving effect to the Statutory Order and not otherwise. The conditions of grant of licence and its renewal are the essential features of the Statutory Order and in guise of issuing directions, the State government or a Licensing Authority cannot supplant the provisions of the Statutory Order, but can supplement it only with a view to give effect to the provisions of the Statutory Order. The State government or the Licensing Authority while giving effect to the provisions of the Statutory Order is not authorised to amend the Statutory Order by issuing directions. Once the enabling provisions restrict the power of issuing direction only for giving effect to the provisions of the Statutory Order, the nature and extent of direction which the State government or any authority specified therein are empowered to issue is confined to the area which is marked out by the Statutory Order. In the present case what we find is that the Licensing Authority while issuing the direction that the respondents licence shall not be renewed on the premise that his place of business falls within a radius of 5 kms. of a retail outlet of government run oil company has, in fact, purported to amend the conditions of renewal of licence granted under the Statutory Order which was not permissible under sub-clause (6) of Clause 16 of the Statutory Order. 17. We have already noticed that the provisions of the Statutory Order do not provide for refusal to renew a licence granted under the Statutory Order, if the place of business of a licensee falls within a radius of 5 kms. of a government run retail outlet. Further, the Statutory Order neither expressly nor by necessary implications prohibit the grant of licence to a person or refusal to renew such a licence if the place of business of such licensee falls within the radius of 5 kms. of a government run retail outlet. In that view of the matter, the direction/order issued by the Licensing Authority refusing to renew the licence of the respondent was inconsistent with the provisions of the Statutory Order inasmuch as the same was not for purposes for giving effect to the Statutory Order and, therefore, such a direction/order could not have given effect to, while considering the renewal of licence of the respondent herein. 18. For the aforesaid reasons, we are in agreement with the view taken by the High Court. Consequently,

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]It is, therefore, manifest from the provisions of the Statutory Order that in so far as conditions of grant of licence for sale of Diesel Oil and its renewal are concerned, the Statutory Order is a complete code in itself and there is no provision in the Statutory Order under which a Licensing Authority could refuse to renew a licence if licensees place of business falls within a radius of 5 kms. of a government run retailhave already noticed that the provisions of the Statutory Order do not provide for refusal to renew a licence granted under the Statutory Order, if the place of business of a licensee falls within a radius of 5 kms. of a government run retail outlet. Further, the Statutory Order neither expressly nor by necessary implications prohibit the grant of licence to a person or refusal to renew such a licence if the place of business of such licensee falls within the radius of 5 kms. of a government run retail outlet. In that view of the matter, the direction/order issued by the Licensing Authority refusing to renew the licence of the respondent was inconsistent with the provisions of the Statutory Order inasmuch as the same was not for purposes for giving effect to the Statutory Order and, therefore, such a direction/order could not have given effect to, while considering the renewal of licence of the respondentare in agreement with the view taken by the High Court.