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2013 DIGILAW 276 (AP)

Padma Srinivas Gas Agency v. District Collector

2013-04-09

C.V.NAGARJUNA REDDY

body2013
Judgment : Petitioner No.1 is an L.P.G. distributor of Hindustan Petroleum Corporation Limited (for short 'the Corporation') at Devarapalli Village and Mandal, West Godavari District. Petitioner No.2 is the proprietor of petitioner No.1 agency, besides being the owner of truck bearing registration No.AP 5V 4356. It is the case of the petitioner that the abovementioned truck was attached to the Corporation for transportation of packed cylinders from the Corporation's plant to the distributor's godown and that for this purpose the requirement of obtaining registration in Form F is exempted under the provisions of the Andhra Pradesh Petroleum Products (Licensing and Regulation of Supplies) Order, 1980 (for short 'the Petroleum Products Order'). When the said truck was carrying 300 LPG cylinders from the Corporation's plant, the same was intercepted and seized by the authorities of the Vigilance Department on 06.03.2013 under a mediators' report. A perusal of the said report shows that the only ground on which the seizure of the truck along with 300 LPG cylinders was made is that the truck was not registered as per Form F with the Collector (Civil Supplies). Evidently, on the basis of the mediators' report, respondent No.1 has initiated proceedings under Section 6-A of the Essential Commodities Act, 1955 (for short 'the Act'). The petitioner pleaded that so far no notice under Section 6-B of the Act has been issued. Be that as it may, the petitioners made an application before respondent No.1 for release of the truck and the LPG cylinders. By order in reference No.12/CS/189/2013 dated 25.03.2013, respondent No.1 has directed the petitioners to furnish security in a sum of Rs.5,00,000/- in favour of respondent No.1 for release of the seized stock. Feeling aggrieved by this communication, the petitioners filed this writ petition. In support of the plea of the petitioners that in respect of the trucks attached to the Corporation for transportation of LPG gas, registration with the licensing authority and obtaining licence in Form-F is not necessary, they have filed a copy of letter dated 19.03.2013 addressed by an official of the Corporation. A perusal of the said letter unequivocally shows that Clause 8 of the Petroleum Products Order itself exempts the trucks attached to the oil companies for transportation of packed cylinders from the Corporation's plant to the distributors' godowns'. A perusal of the said letter unequivocally shows that Clause 8 of the Petroleum Products Order itself exempts the trucks attached to the oil companies for transportation of packed cylinders from the Corporation's plant to the distributors' godowns'. Sri N. Siva Reddy, learned counsel for the petitioners, has invited my attention to Clause 8 of the Petroleum Products Order, a perusal of which would show that the State of Andhra Pradesh has exempted the ordinary trucks operated by the transport contractors of the oil companies for transporting the liquid petroleum gas cylinders from obtaining registration certificate in Form F as required under Sub-clause (1) of Clause 8 of the Petroleum Products Order. In the light of the above clause and the communication dated 19.03.2013 addressed by the Corporation, wherein it has categorically informed respondent No.1 that the petitioner's truck was being operated under a transport agreement entered by the petitioner with the Corporation for transport of packed cylinders from the Corporation's plant to the distributor's godown, I do not find justification for respondent No.1 to insist on the petitioners to furnish cash security for Rs.5,00,000/-. While respondent No.1 may be free to proceed with the proceedings under Section 6-A of the Act, he ought to have examined the petitioners' request for release of the truck along with the seized stock with reference to the facts and circumstances of the case. As the petitioners are able to make out a strong prima facie case in support of their plea that non-registration of the seized truck does not constitute violation of the Petroleum Products Order, I do not find any rationality or reasonableness in respondent No.1 directing the petitioners to furnish cash security for release of the seized truck and LPG cylinders pending finalization of the proceedings under Section 6-A of the Act. For the aforementioned reasons, order dated 25.03.2013 of respondent No.1 to the extent of directing the petitioners to furnish cash security is set aside. Respondent No.1 is directed to release the seized stock along with the truck to the petitioners subject to petitioner No.2 giving an undertaking in writing before respondent No.1 that he will abide by the outcome of the pending proceedings under Section 6-A of the Act, besides not transferring the seized truck to any third parties till the disposal of the said proceedings. Subject to the above directions, the Writ Petition is allowed. Subject to the above directions, the Writ Petition is allowed. As a sequel to the allowing the writ petition, W.P.M.P.No.13103 of 2013 filed by the petitioners for interim relief shall stand disposed of as infructuous.