Case: M/S.Durga Oil Co  Vs. State Of Up

The High Court by the impugned judgment considered the different provisions of the Act and the Rules as well as the forms, more particularly, Forms XI and XII and came to hold that a licensee under Form XI is not entitled to store high-speed diesel in an underground tank and sale from the same by using a pump unit. With the aforesaid conclusion, the writ application having been dismissed the appellant has preferred the present appeal

Court's reasoning:
12. Bearing in mind the aforesaid analysis, if the First Schedule and the forms of licence contained therein are examined then Form XI can be held to be meant for importing and storing petroleum Class B otherwise than in bulk of a total quantity not exceeding 25, 000 litres. In other words, the holder of a licence in Form XI can store petroleum Class B in different containers each of which would not exceed 1000 litres in capacity and subject to a total quantity of 25, 000 litres. When such licensee stores petroleum Class B in a tank meaning thereby in excess of 1000 litres, then it would be a case of storage of petroleum in bulk and for such storage licence is required to be obtained in Form XII and the authority empowered to grant such licence is the Chief Controller or a Controller of Explosives authorised in this behalf by the Chief Controller. The appellant being a licensee for importing and storing petroleum Class B in Form XI is not entitled to store the same in a tank as that would be a storage of petroleum in bulk and for such storage licence in Form XII to be granted by the Chief Controller or a Controller of Explosive authorised by such Chief Controller is required. Since the appellant does not possess the licence in Form XII, it was not entitled to store the high-speed diesel in an underground tank and sale from the same by using of pump unit. The conclusion of the High Court, therefore, does not suffer from any illegality to be interfered with by thishave not been persuaded to accept this submission inasmuch as the Rules itself provide for different types of licences conferring authority on different persons to grant such licences. The Act or the Rules do not prohibit storage of high-speed diesel in quantity more than 1000 litres in an underground tank but what is necessary in such a case is that the licence has to be obtained in Form XII from the Chief Controller. The appellant admittedly being a licensee on Form XI granted by the District Magistrate cannot claim to be entitled to store high-speed diesel in an underground tank and sale from the same as that would be a storage of petroleum in bulk and it would be a contravention of the terms and conditions of the licence itself. We have, therefore, no hesitation to reject the aforesaid submission of Mr. Sudhir Chandra, learned Senior Counsel appearing for theIn view of our aforesaid conclusion, it is not necessary to examine the effect of the provisions of the U.P. High Speed Diesel Oil and Light Diesel Oil (Maintenance of Supplies and Distribution) Order, 1981, framed by the State Government under the provisions of the Essential Commodities Act, though there cannot be a dispute that the State Government by such orders can regulate the storage and supply of the high-speed diesel and put restrictions and conditions as authorised under the State Order