Padmavathi Oil and General Merchant and Others vs The Commissioner of Civil Supplies, Govt. of A.P. and Others

P.L. Narasimha Sarma, J.—This writ petition is filed questioning the circular issued by first respondent in Ref. No. P5/69/87 dt.4-5-''87 in and by the terms of which, first respondent directed all the Collectors/Chief Rationing Officers to issue instructions to all the dealers in edible oils and edible oil seeds not to store any non-edible oil or non-edible seeds in the licence premises.

The intention behind the above said impugned circular was that it came to the notice of the Government that some of the dealers in edible oils are storing non-edible oil, like Castor oil in the business premises with the intention of mixing with the edible oil. The petitioners are wholesale merchants in Vijayawada town and they are licenced dealers dealing in purchase and sale of oils, viz; groundnut oil, refind oil, Vanaspathi and gingelly oil which are all edible oils besides the coconut oil and castor oil which are non-edible. It is also mentioned in the affidavit that they are all having valid licence to purchase, sale of oils both in retail and wholesale. They are questioning the impugned circular on the ground that first respondent has no jurisdiction to issue any such direction under the provisions of the A.P. Scheduled Commodities Dealers (Licensing & Distribution) Order, 1982. (For short ''the Order''). The order covers the schedule commodities which are mentioned in Schedule-I, viz; edible oil seeds and edible oils, food grains and sugar. First respondent has the power to issue directions under Clause 12 of the Order on all matters covered by the provisions of the Order. It is also made clear by Condition No. 12 of the Conditions of the licences which is given in Form-B. The said condition No. 12 also says that the licensee shall comply with any direction that may be given to him by the State Government or the licensing authority in regard to purchase, sale or storage for sale of scheduled commodities. Therefore, it is clear that the authorities were given power to give instructions in respect of the commodities mentioned in Schedule I to the Order which are mentioned above.

In view of the above, it is clear that the impugned circular giving directions to the Collectors/Chief Rationing Officers of Hyderabad to issue instructions to all the dealers in edible oils and edible oil seeds not to store any non-edible oil or non-edible oil seeds is not valid.

However, if it is found by the authorities that the licenses under the Order are mixing the castor oil with edible oils, it is open to the authorities to take appropriate proceedings in accordance with law. It is also open to the authorities to verify as to whether the storing of castor oil etc., which are non edible oils is in accordance with the valid permits.

Having regard to the facts and circumstances and rule position, this writ petition is allowed to the extent indicated above and the impugned circular as well as the consequential circular issued by the third respondent dt.7-7-1987 are set aside. No costs. Advocate''s fee Rs. 250/.