STATE OF U.P. AND ORS. versus DAULAT RAM GUPTA

Citation: [2002] 2 S.C.R. 838 · Decided: 22-03-2002 · Supreme Court of India · Bench: V.N. KHARE · Disposal: Dismissed

Judgment (excerpt)

A 
B 
ST A TE OF U.P. AND ORS. 
v. 
DAULAT RAM GUPTA 
MARCH 22, 2002 
(V.N. KHARE AND ASHOK BHAN, JJ.] 
U.P. High Speed Diesel Oil and Light Diesel Oil (Maintenance of Supply 
and Distribution) Order, 1981-Clauses 16(6) and 4 with Form 'B' and 'C'-
Sale of High Speed Diesel Oil and Light Diesel Oil in rural areas-Issuance 
C of direction by State Government of licensing Authority-With regard to refusal 
to renew licences granted to petty dealers under the order if their places of 
business are within a radius of 5 Kms, of retail outlet run by the Government 
Oil Company-Correctness of-Held, such direction not correct since it is 
inconsistent with the provisions of the statutory Order and is not for purpose 
D of giving effect to the statutory order. 
The question which arose for consideration is whether the State 
government or the licensing authority can issue direction for refusal of renewal 
of licences granted to petty dealers under sub-clause (6) of clause. 16 of the 
U.P. High Speed Diesel Oil and Light Diesel Oil (Maintenance of Supplies 
· E and Distribution) Order, l 981 if their places of business are within a radius 
of five Kilometers of retail outlet run by a Government oil company. 
Dismissing the appeal, the Court 
HELD: 1. The provisions of the U.P. High Court Speed Diesel Oil and 
F 
Light Diesel Oil (Maintenance of Supplies and Distribution) Order, 1981 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 person or refusal 
to renew such a licence if the place of business of such licensee falls within 
G the radius of 5 Kms. of a government run retail outlet [846-D-EJ 
2.1. statutory order clause 16 sub-clause (6) enables the making of an 
order of issuing of direction by the executive. There are two restrictions on 
the power of the State Government or a licensing authority while issuing a 
H general or special direction-firstly, such a direction should not be inconsistent 
838 
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STATE v. DAULATRAM GUPTA 
839 
with the statutory Order and secondly, such direction can be issued only for A 
· purposes of giving effect to the provisions of the statutory order. 
[844-G-H; 845-AJ 
2.2. The direction so issued by the State government or licensing 
Authority must be compatible with the provisions of the statutory order. The 
State Government or the licensing authority in exercise of delegated powers B 
to issue direction cannot make provisions which are inconsistent with the 
statutory order. Any direction issued if found not in conformity with the 
provisions of the statutory order, the same must be held to be beyond the 
enabling provisions of the statutory order. The power to issue directions is 
derived from sub-clause (6) of Clause 16 of the statutory order and a delegatee C 
on whom such a power is conferred is required to act within the framework 
of the authority conferred by the statutory order. In the instant case 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 D 
inconsistent to the provisions of the statutory order. 
[1145-C-D-E-FJ 
2.3. 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 E 
to effectuate the object behind the statutory order if the object is discernible 
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 purpose of giving effect to the statutory order and not 
otherwise. The conditions of grant of licence and its renewal are the essential F 
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 t

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