Rajasthan High Court – Jodhpur
M/S. My Own Eco Energy Private Limited vs Union Of India on 4 July, 2025
[2025:RJ-JD:28349]
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
JODHPUR
S.B. Civil Writ Petition No. 6796/2025
M/s. My Own Eco Energy Private Limited, a Company Registered
Under the provisions of the Companies Act, 1956 having its
Registered Office at 4th Floor, A-1, 444, Shah and Nahar
Industrial Estate, Sitaram Jadhav Marg, Near Dhanraj Estate,
Lower Parel, West, Mumbai, Maharashtra 400013, India, through
its Legal Executive Adil Khan S/o Iqbal Khan, Aged About 31
Years.
----Petitioner
Versus
1. Union of India, through Secretary, Ministry Of Consumer
Affairs, Food And Public Distribution, Krishi Bhawan, New
Delhi - 110001.
2. Principal Secretary to the Government of Rajasthan,
Department Of Consumer Affairs, Food snd Civil Supplies,
Secretariat Jaipur.
3. Principal Secretary to the Government Of Rajasthan,
Department of Home Affairs, Secretariat, Jaipur.
4. District Supply Officer, Collectorate, Jodhpur, Rajasthan.
5. Deputy Commissioner Of Police (West), Police
Commissionerate, Jodhpur.
----Respondents
Connected with
S.B. Civil Writ Petition No. 1031/2025
M/s. Shri Bhuriya Baba Fuels, Through its Proprietor Dinesh
Jakhar S/o Shri Shrawan Kumar Jakhar, Aged About 32 Years,
R/o Plot No. 42-43, Khasra No. 107, Ekta Nagar, Nandri,
Jodhpur, Rajasthan.
----Petitioner
Versus
1. Union of India, through Secretary, Ministry Of Consumer
Affairs, Food And Public Distribution, Krishi Bhawan,
New Delhi -110001.
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2. Principal Secretary to the Government Of Rajasthan,
Department Of Consumer Affairs, Food and Civil
Supplies, Secretariat, Jaipur.
3. Principal Secretary to the Government Of Rajasthan,
Department Of Home Affairs, Secretariat, Jaipur.
4. District Supply Officer, Collectorate, Nagaur, Rajasthan.
5. Enforcement Inspector (Prosecution), District Supply
Office, Nagaur.
6. Additional District Collector, Nagaur.
----Respondents
For Petitioner in CW : Ms. Simran Mehta, Adv. With
No.6796/2025 Mr. Falgun Buch, Adv.
Mr. gopal Krishna Chhangani, Adv.
For Petitioner in CW Mr.Suniel Purohit, Adv.
No.1031/2025 :
For Respondent(s) : Mr.Nitesh Mathur, AGC
HON'BLE MR. JUSTICE MUNNURI LAXMAN
Reportable Judgment
Judgment Reserved on : 28/05/2025
Judgment Pronounced on : 04/07/2025
1. This order disposes of S.B. Civil Writ Petition No.
6796/2025 and S.B. Civil Writ Petition No.1031/2025.
2. The reliefs sought in S.B. Civil Writ Petition No.6796/2025
are as follows:
i) By an appropriate writ, order or direction, the provisions
of the Motor Spirit and High-Speed diesel (Regulation of
Supply, Distribution and Prevention of Malpractices)
Order, 2005 with its subsequent amendments, are not
applicable upon the Indizel which is a Drop in bio-fuel and
further, the respondent authorities be restrained to take
any coercive action against the petitioner firm and permit
the petitioner firm to continue with its business of Drop in
bio-fuel as a retail outlet dealer.
ii) Any other appropriate order or direction which this
Hon’ble Court may deem fit just and proper in the facts(Downloaded on 04/07/2025 at 10:51:42 PM)
[2025:RJ-JD:28349] (3 of 19) [CW-6796/2025]and circumstances of the case may kindly be passed in
favour of the petitioner.
iii) Costs of the writ petition may kindly be awarded to the
petitioner.
3. The reliefs sought in S.B.Civil Writ Petition No.1031/2025
are as follows:
i) By an appropriate writ, order or direction, the provisions
of the Motor Spirit and High-Speed diesel (Regulation of
Supply, Distribution and Prevention of Malpractices)
Order, 2005 with its subsequent amendments, are not
applicable upon the Indizel which is a Drop in bio-fuel and
further, the respondent authorities be restrained to take
any coercive action against the petitioner firm and permit
the petitioner firm to continue with its business of Drop in
bio-fuel as a retail outlet dealer.
ii) By appropriate writ, order of direction,t he impguned
order dated 30.12.2024 (Annex-17) passed by the
learned Additional District Collector, Nagaur may kindly
be declared illegal and be quashed and set aside and any
proceeding initiated consequently thereto may also be
declared non-est.
iii) Any other appropriate order or direction which this
Hon’ble Court may deem fit just and proper in the facts
and circumstances of the case may kindly be passed in
favour of the petitioner.
iii) Costs of the writ petition may kindly be awarded to the
petitioner.
4. For the sake of brevity, the facts stated in S.B. Civil Writ
Petition No. 6796/2025 (M/s. My Own Eco Energy Private Limited
vs. Union of India & Ors.) are adopted for the disposal of both
writ petitions. The petitioner-Company is engaged in the
manufacturing, distribution, marketing, and retail of Indizel, which
is India’s first Euro 6-compliant drop-in bio-fuel. This industry was
established pursuant to the National Policy on Bio-fuels of 2018.
Indizel, a drop-in bio-fuel, is a non-fossil fuel. The petitioner-
Company is the largest manufacturer of drop-in fuel in India and
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is planning to market it through multiple fuel stations across the
country.
5. The petitioner in S.B. Civil Writ Petition No. 1031/2025 is
a Firm engaged in selling drop-in fuel by establishing retail outlets
for the sale of the drop-in fuel manufactured by the petitioner-
Company.
6. The primary claim of the petitioner-Company is that drop-
in fuel, which is a non-bituminous fuel, is not an essential
commodity as notified under the Essential Commodities Act.
Therefore, the provisions of the Motor Spirit and High Speed
Diesel (Regulation of Supply, Distribution and Prevention of
Malpractices) Order, 2005 (hereinafter referred to as “the Control
Order, 2005”), which was promulgated by the Central Government
by invoking powers under Section 3 of the Essential Commodities
Act, 1955, are inapplicable to the drop-in fuel manufactured by
the petitioner-Company.
7. Further, the case of the petitioner-Company is that, as per
the definition contained in the Petroleum and Natural Gas Rules,
1959, framed by exercising powers under Sections 5 and 6 of the
Oilfields (Regulation and Development) Act, 1948, “petroleum”
has been defined in a manner that does not include drop-in fuel.
Hence, drop-in fuel cannot be considered a petroleum product so
as to attract the application of the Control Order, 2005.
8. On this premise, the petitioners in both writ petitions have
challenged the confiscation order passed by the Additional
Collector in respect of the seizure of drop-in fuel and the
conveyance (i.e., vehicle), on the ground that the Control Order,
2005 is inapplicable to the fuel manufactured by the petitioner-
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Company, which is not an essential commodity so as to justify
invoking the powers under Section 6(A) of the Essential
Commodities Act, 1955 for confiscation. The petitioner has also
challenged the seizure of drop-in fuel manufactured by the
petitioner-Company solely on this ground.
9. The petitioners have relied upon various orders passed by
this Court, particularly by the Jaipur Bench, under which a
prohibitory order issued by the State of Rajasthan dated
18.02.2018 was set aside. This prohibitory order restrained the
sale of bio-diesel through pumps as direct sale, relying upon an
earlier order dated 10.04.2017, which has now become redundant
by virtue of the amendment to Regulation 6A of the Control Order,
2005. The amendment empowers the Central Government to
permit the direct sale of bio-diesel for blending with High Speed
Diesel to all consumers, as per the limits and standards prescribed
by the Bureau of Indian Standards.
10. The petitioners also relied upon the decision of the
Bombay High Court, where similar actions by the authorities
within the jurisdiction of Maharashtra were challenged before the
Court. An interim order was passed by the Bombay High Court
restraining the authorities from taking any coercive action against
the petitioner therein and its sale of drop-in fuel.
11. The case of the respondents-Authorities is that drop-in
fuel is an essential commodity, and the Central Government, by
exercising powers under Section 3 of the Essential Commodities
Act, has framed the Regulation, 2005, under which the sale of
motor spirit or High Speed Diesel is allowed subject to permission
granted by the Central Government. The respondents also claim
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that drop-in fuel is a hydrocarbon liquid, similar to conventional
petroleum products obtained naturally from fossils. The definition
of petroleum adopted in the Control Order, 2005 is derived from
the Petroleum Act, 1948. All hydrocarbon liquids are defined as
petroleum. Although drop-in fuel is obtained from non-fossil
sources through various processes, it remains a hydrocarbon
liquid/oil. Therefore, it falls under the definition of petroleum and
amounts to motor spirit, which is primarily intended to fuel
vehicles by blending with conventional petroleum and petroleum
products.
12. The respondents also claimed that the question raised in
the present writ petitions has not been finally dealt with by the
Bombay High Court or the Jaipur Bench of this Court. The
challenge in the decision rendered by the Jaipur Bench was not
with regard to the applicability of the Control Order, 2005. The
challenge there was against general restraining order issued by
the State Government prohibiting the direct sale of drop-in fuel,
which was contrary to Regulation 6(A) of the Control Order, 2005.
Thus, according to the respondents, the decisions have no
relevance to the facts at issue in the present writ petitions.
13. Heard the learned counsel for both the parties.
14. The primary argument of the learned counsel appearing
for the petitioners in both writ petitions is that drop-in fuel is
neither petroleum nor a petroleum product, and it is not an
essential commodity so as to attract the provisions of the Essential
Commodities Act as well as the Control Order framed thereunder.
The submission of the learned counsel for the petitioners is that
the definition given under the Petroleum and Natural Gas Rules,
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1959 does not include drop-in fuel. Therefore, the seizure and
confiscation carried out by the respondents-Authorities under the
Control Order, 2005 are without authority, and the orders of
seizure and confiscation are without jurisdiction and liable to be
set aside.
15. Per contra, the learned counsel appearing for the respondents
submitted that drop-in fuel is a hydrocarbon liquid/oil and has a similar
chemical nomenclature to that of conventional fuel, although the source
of hydrocarbons may be different. He further submitted that the Control
Order, 2005 adopted the definition of petroleum from the Petroleum Act,
1934. The definition given under the Petroleum and Natural Gas Rules,
1959, is relevant only in the context of interpreting certain provisions
under the Control Order, 2005, but the appropriate definition is the one
provided under the Petroleum Act, 1934.
16. The learned counsel for the respondents also submitted that
the questions raised in the present writ petitions involve different
issues. Such questions were not the subject matter of the writ
petitions decided by the Jaipur Bench of this Court, which dealt
with a different issue not pertaining to the questions raised in the
present writ petitions.
17. It was also submitted that the Control Order comprehends
drop-in fuels within the definition of petroleum products, i.e.,
motor spirit, and the sale of such motor spirit can only be
conducted after obtaining the necessary permission from the
Central Government. Any sale of such fuel without authorization
would amount to a contravention of the Control Order, 2005,
thereby inviting seizure and consequential confiscation
proceedings.
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18. Lastly, it is submitted by the learned counsel for the
respondents that, as per the National Policy on bio-fuels,
manufacturers of bio-fuel are not permitted under the policy to
store, distribute, or sell such products directly. They are entitled to
do so only through oil companies. Further, by virtue of the
amendment to Regulation 6(A) of the Control Order, 2005, which
was introduced in the year 2017, manufacturing companies are
entitled to sell such bio-fuels directly to customers for blending,
subject to the norms prescribed by the International Organization
for Standardization (ISO). Even such sales can only be conducted
after obtaining authorization from the Central Government. Any
act without authorization attracts the actions contemplated under
the Control Order, 2005, as well as the provisions of the Essential
Commodities Act. The actions of seizure and confiscation
challenged in the present writ petitions cannot be said to be
without jurisdiction; and he prayed for dismissal of the writ
petitions.
19. I have considered the arguments of both the parties and
carefully perused the material available on record.
20. In light of the above contentions of both the petitioners
and the respondents, this Court has to consider whether drop-in
fuels fall under the category of essential commodities and, if so,
whether the Control Order, 2005 is applicable to the fuel
manufactured by the petitioner-Company and marketed through
various firms as dealers for sale through retail outlets.
21. Section 2A of the Essential Commodities Act is relevant in
this regard, which reads hereunder:-
“2A. Essential commodities declaration, etc.―
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[2025:RJ-JD:28349] (9 of 19) [CW-6796/2025](1) For the purposes of this Act, “essential commodity”
means a commodity specified in the Schedule.
(2) Subject to the provisions of sub-section (4), the
Central Government may, if it is satisfied that it is
necessary so to do in the public interest and for
reasons to be specified in the notification published in
the Official Gazette, amend the Schedule so as to―
(a) add a commodity to the said Schedule;
(b) remove any commodity from the said Schedule,
in consultation with the State Governments.
21.1 The Schedule to the Act is also relevant, which reads as
under:-
THE SCHEDULE
(See section 2A)
ESSENTIAL COMMODITIES(1) Drugs.
Explanation:- For the purposes of this Schedule, “drugs”
has the meaning assigned to it in clause (b) of section 3
of the Drugs and Cosmetics Act, 1940 (23 of 1940):
(2) fertilizer, whether inorganic, organic or mixed;
(3) foodstuffs, including edible oilseeds and oils;
(4) hand yarn made wholly from cotton;
(5) petroleum and petroleum products;
(6) raw jute and jute textiles;
(7) (i) Seeds of food-crops and seeds of fruits and
vegetables;
(ii) Seeds of cattle fodder; and
(iii) Jute seeds;
(iv) Cotton seed.
A reading of Section 2A of the Essential Commodities
Act it makes clear that any commodity specified in the Schedule is
treated as an essential commodity. A perusal of the Schedule
shows that petroleum and petroleum products are included as
essential commodities. Section 3 of the said Act enables the
Central Government, by way of order, to regulate and prohibit the
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production, supply, distribution, and trade or commerce in
essential commodities. This means that the Central Government
derives the power to prohibit the production, supply, distribution,
and trade or commerce in essential commodities to ensure their
equitable distribution and availability at fair prices, as well as for
Defence and Military operations. The Control Order, 2005 was
framed by exercising power under Section 3 of the Essential
Commodities Act.
22. The primary contention of the learned counsel appearing
for the petitioners is that drop-in fuel is neither petroleum nor a
petroleum product, and therefore it cannot be treated as an
essential commodity so as to attract the regulations framed under
the Control Order, 2005. In a nutshell, his argument is that drop-
in fuel is not a petroleum product and is not an essential
commodity, and hence the Control Order, 2005 does not apply.
According to him, any seizure and confiscation carried out under
the powers conferred by the Control Order, 2005 or any provisions
of the Essential Commodities Act, 1955 are without jurisdiction
and such seizure and confiscation should be set aside.
23. In light of these submissions, it is necessary to refer to
certain provisions of the Control Order, 2005. Section 2(a), 2(f),
2(g), 2(i), and 2(k) read as follows:
“2.(a) “adulteration” means [presence of marker in
motor spirit and high speed diesel and/or] [Inserted by
Notification No. G.S.R. 18(E) dated 12.1.2007 (w.e.f.
21.12.2005).] the introduction of any foreign
substance into motor spirit or high speed diesel
illegally or unauthorisedly with the result that the
product does not conform to the requirements of the
Bureau of Indian Standards specifications number IS
2796 and IS 1460 for motor spirit and high speed(Downloaded on 04/07/2025 at 10:51:42 PM)
[2025:RJ-JD:28349] (11 of 19) [CW-6796/2025]diesel respectively or any other requirement notified
by the Central Government from time to time;”
“2(f) “Malpractices” shall include the following acts of
omission and commission in respect of Motor Spirit
and High Speed Diesel :-
(i) Adulteration,
(ii) Pilferage,
(iii) stock variation,
(iv) unauthorized exchange
(v) unauthorized purchase,
(vi) unauthorized sale,
(vii) unauthorized possession,
(viii) over-charging,
(ix) sale of off-specification product, and
(x) short delivery;”
“2(g) “motor spirit” means any hydrocarbon oil,
excluding crude mineral oil, which meets the
requirements of Bureau of Indian Standards
specification number IS 2796;”
“2(i) “petroleum” shall have the meaning assigned to
it in the Petroleum Act, 1934;”
“2(k) “product” means motor spirit and high speed
diesel;”
23.1 It is also relevant to refer to definition of ‘petroleum’ as
defined under the Petroleum Act, 1934, which reads as follows:-
“2(a) “petroleum” means any liquid hydrocarbon or
mixture of hydrocarbons, and any inflammable
mixture (liquid, viscous or solid) containing any liquid
hydrocarbon;”
24. A reading of the definition contained in the Petroleum Act
shows that “petroleum” means any hydrocarbon in liquid form or a
mixture of such hydrocarbons, and any inflammable liquid
hydrocarbon. Hydrocarbons are organic compounds made up of
only hydrogen and carbon atoms. They are primarily components
of fossil fuels, bio-fuels, and many plastics. Hydrocarbons can
exist as gases, liquids, solids, or polymers.
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25. In the present case, as per the definition of “petroleum”
contained in the Petroleum Act, only liquid hydrocarbons, mixtures
of such hydrocarbons, and any inflammable liquid hydrocarbons
are treated as petroleum.
26. A reading of the definitions of ‘petroleum’ and ‘petroleum
products’ as contained in the Control Order, 2005 makes it clear
that Motor Spirit and High Speed Diesel are products of
petroleum. The definition of Motor Spirit specifies that any
hydrocarbon oil, excluding crude mineral oil, which meets the
requirements of the Bureau of Indian Standards specifications, is
considered Motor Spirit. A similar definition is adopted for the
term “High Speed Diesel” as contained under Section 2(e) of the
Control Order, 2005.
27. Regulations 3, 4, 5 & 6A of the Control Order, 2005 are
also relevant in this regard, they are hereunder:-
“3. Product supply and transportation:-
(1) The product from the supply point shall be
transported by the transporter in a container or tank-truck
certified to be fit by the explosives authorities, transport
authorities and oil company to carry the product with
accurate calibration as certified by the weights and
measures authorities and supported by delivery
documents and deliver the same to the storage or
dispensing point in the same condition as delivered to him
by the originating supply point both in respect of quality
and quantity.
(2) The transporter shall ensure that the product is
transported only in containers or tank truck which is
properly sealed and locked.
(3) The dealer or consumer shall inspect such container or
tank-truck in which he receives the product to ensure,-
(a) that the container or tank truck, including the
seal and lock is not in any manner tampered with;
(b) that the quantity and quality of the product is as
per delivery documents issued by the oil company and
the quality of the product conforms to the(Downloaded on 04/07/2025 at 10:51:42 PM)
[2025:RJ-JD:28349] (13 of 19) [CW-6796/2025]requirements of the Bureau of Indian Standard
specifications number IS 2796 and IS 1460 for motor
spirit and high speed diesel respectively. For this
purpose, the oil company shall indicate density of the
product at 15 degrees centigrade in the delivery
documents and the dealer or consumer shall maintain
a record of densities and keep samples of product duly
signed jointly by him and the driver of tank truck and
also take other measures as prescribed by the oil
company. The variation in density at 15 degrees
centigrade of the product in tank truck compared to
the density mentioned in delivery documents should
not be more than +/-0.0030;
(4) No person other than the dealer or oil company shall
be engaged in the business of selling product;
(5) No person shall sell or agree to sell any petroleum
product or its mixture other than motor spirit or high
speed diesel or any other fuel authorized by the Central
Government in any form, under any name, brand or
nomenclature, which can be and is meant to be used as
fuel in any type of automobile vehicles fitted with spark
ignition engines or compression ignition engines;
(6) No dealer, transporter, consumer or any other person
shall indulge in any manner in any one or more of the
malpractices.
(7) The delivery or sale of motor spirit and high speed
diesel shall be made by a dealer of oil company only from
authorized retail pump outlet;”
“4. Restriction on marketing of motor spirit and high
speed diesel.- No person, other than those authorized by
the Central Government, shall market and sell motor spirit
or high-speed diesel to consumers or dealers.”
“5. Grant of authorization to market motor spirit and
high speed diesel.-
(1) Whosoever desires to secure authorisation to market
and sell motor spirit and high speed diesel, shall submit
an application to the Central Government in the
application form given in Schedule II alongwith the fee
specified therein either by cheque or demand draft in
favour of the Pay and Accounts Officer, Ministry of
Petroleum and Natural Gas, payable at New Delhi.
(2) After scrutiny of the application form referred to in
sub-clause (1), the Central Government may, if it is
satisfied with the details furnished by the applicant, after
requiring the applicant to furnish bank guarantee and
other payments as specified by it, issue authorisation to
market motor spirit and high speed diesel indicating the
terms and conditions of such authorisation.
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(3) The Central Government, if is satisfied that any of the
conditions relating to the authorization as specified in
clause have been violated, may cancel the authorization
issued under this clause: Provided that before cancellation
of the authorization shall be afforded an opportunity of
being heard.”
“6A. [Substituted by Notification No. G.S.R. 728(E),
dated 29.6.2017 (w.e.f. 21.12.2005).](1) The Central Government may permit the direct sale of
bio-diesel (B-100) for blending with high speed diesel to
all consumers, in accordance with the specified blending
limits and the standards specified by the Bureau of Indian
Standards.
(2) The owner of every outlet selling bio-diesel (B-100)
shall prominently display at the place of business the
permissible limits specified by the manufacturers of
vehicles and the standards specified by the Bureau of
Indian Standards for blending of bio-diesel (B-100) for
use of consumers in their vehicles.Explanation. – For the
purposes of this clause, “oil company” means the Indian
Oil Corporation Limited, the Hindustan Petroleum
Corporation Limited, the Bharat Petroleum Corporation
Limited, any private bio-diesel manufacturers, the
authorized dealer of such oil companies and joint ventures
of public sector oil marketing companies authorised by the
Central Government.]”
27.1 Sub-sections (4) and (5) of Regulation 3 make it clear
that a dealer of an oil company shall only be engaged in the
business of selling petroleum products, and no person shall sell or
agree to sell any petroleum product other than motor spirit, high-
speed diesel, or any other fuel authorized by the Central
Government in any form, under any name, brand, or
nomenclature, which can be and is meant to be used as fuel in
any type of automobile fitted with spark ignition or compression
ignition engines.
27.2 Regulation 4 also makes it clear that only persons
authorized by the Central Government shall market and sell motor
spirit or high-speed diesel to consumers. Regulation 5 prescribes
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the steps to secure authorization to market and sell motor spirit.
Regulation 6A, as amended in 2017, enables manufacturers to sell
bio-diesel directly to all consumers for the purpose of blending
within the prescribed limits and by meeting the standards of the
Bureau of Indian Standards. Drop-in fuels are liquid fuels sourced
from biomass or other reliable sources that can be used as direct
substitutes for conventional petroleum-based fuels like gasoline
and diesel, without requiring any modifications to existing engines
or fuel infrastructure.
27.3 The National Policy on bio-fuels, when read along with the
amended Policy, indicates that the primary responsibility for
storage, distribution, and sale of bio-fuels manufactured under the
National Policy was with Oil Companies and manufacturers were
not authorized for direct sale. However, the amended provision
contained in Regulation 6A of the Control Order, 2005 relaxed the
rigour of the original policy on bio-diesel to some extent by
permitting manufacturers to sell their products directly to all
consumers, subject to obtaining authorization from the Central
Government and complying with the standards prescribed by the
Bureau of Indian Standards.
28. A conjoint reading of the definitions of “Products,” “Motor
Spirit,” and “High Speed Diesel” as defined under the Petroleum
Act and the Control Order, 2005, show that bio-diesel cannot be
said to be non-essential commodity. Drop-in fuel, which is a
biofuel, also contains hydrocarbons in liquid form and shares
similar properties with petroleum and petroleum products, which
are conventional in nature. Both have similar compositions of
organic compounds but differ in the percentage of carbon content.
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Conventional petroleum and petroleum products used as motor
spirit have higher carbon emissions compared to man-made
biofuels, such as drop-in fuel.
29. After considering the above provisions of the Essential
Commodities Act, the Control Order, 2005, and the Petroleum Act,
1934, it cannot be said that drop-in fuel is not petroleum or a
petroleum product. Both conventional fuels and non-conventional
fuels like drop-in fuel contain organic compounds made up of
hydrogen and carbon. Drop-in fuels also fall within the definition
of petroleum and petroleum products as defined under the
Petroleum Act and the Control Order, 2005.
30. The argument of the learned counsel appearing for the
petitioners, based on the definition of petroleum as provided
under the Petroleum and Natural Gas Rules, 1959, is not much
helpful because the definition adopted under those Rules was not
adopted in the Control Order, 2005. On the contrary, the definition
adopted in the Petroleum Act was incorporated into the Control
Order, 2005. According to the Petroleum Act, it is clear that all
liquids hydrocarbons are treated as petroleum or petroleum
products. The definitions of Motor Spirit and High Speed Diesel
also make it clear that hydrocarbon oil, excluding mineral oil, is
treated as Motor Spirit. Indisputably, drop-in fuels are
hydrocarbon oils. However, the source of extraction is different.
The classification is based on the chemical composition of
hydrocarbons, not on the source from which such hydrocarbon
compounds are derived. Thus, the argument of the learned
counsel for the petitioners that drop-in fuel is not an essential
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commodity and is not required to comply with the provisions of
the Control Order, 2005, has no merit and is hereby rejected.
31. Section 2(q) of the Control Order, 2005 defines
“unauthorized sale” as any sale of a product by a dealer,
consumer, or any other person in contravention of the directions
issued by the State Government or the Oil Companies, or in
contravention of any provision of this Order. Such sale is treated
as unauthorized. The sale of Motor Spirit, as per Regulations 4 and
5, can only be carried out after obtaining appropriate authorization
from the Central Government.
32. Regulation 2(a), which defines adulteration, includes
motor spirit and high-speed diesel that do not conform to the
requirements of the Bureau of Indian Standards for motor spirit
and high-speed diesel, respectively, or any other requirement
notified by the Central Government. In the present case, the drop-
in fuel, which is a bio-diesel, may be used for blending with
conventional petroleum products. However, the percentage of the
mixture must conform to the requirements notified by the Central
Government from time to time and, at least, it must comply with
the Bureau of Indian Standards specifications. If such compliance
is absent, it would amount to adulteration.
33. Regulation 2(f) also defines situations where acts of
omission and commission in respect of motor spirit and high-
speed diesel amount to malpractices. The cases of adulteration,
unauthorized sale, unauthorized purchase, and unauthorized
possession would also constitute malpractices.
34. In the present case, the petitioner-Company does not hold
a license to sell directly to consumers, and its action of selling
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[2025:RJ-JD:28349] (18 of 19) [CW-6796/2025]
drop-in fuel directly to consumers through retail outlets amounts
to non-compliance with Regulations 3, 4, and 5 of the Control
Order, 2005. Any action in violation of the Control Order enables
the authorities to take action of seizure and consequential
confiscation by the competent authority. The facts in the present
case show that the competent authority under the Essential
Commodities Act found that the sale of drop-in fuel by the
petitioner-Company, through its dealers directly, was in violation
of the Control Order and therefore impermissible. Such action
rightly resulted in the assumption of jurisdiction by the competent
authority to seize essential commodities and initiate proceedings
under Section 6A of the Essential Commodities Act, 1955, and
such action cannot be said to be an act without jurisdiction.
35. The impugned confiscation proceedings clearly reflect that
the authorities found the drop-in fuels did not meet the prescribed
criteria and suspected adulteration. On that premise only, the
proceedings were initiated by seizure of such commodities, and
such action cannot be said to be without jurisdiction. Therefore,
the challenge to the seizure and confiscation proceedings requires
no interference in light of the undisputed facts on record.
36. The orders relied upon by the learned counsel for the
petitioners, particularly the orders of the Jaipur Bench of this
Court, dealt with the question of the State Government’s action in
prohibiting the direct sale of drop-in fuel through pumps, based on
the order dated 10.04.2017. The general prohibitory orders issued
by the State Government were found to be contrary to the
amended provisions of Regulation 6A of the Control Order, 2005.
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[2025:RJ-JD:28349] (19 of 19) [CW-6796/2025]
37. The issue in the present case is different, and it is not the
case of the respondents that direct sale cannot be done. Direct
sale of drop-in fuel can only be carried out after obtaining
authorization from the Central Government, as required under
Regulations 4 and 5 of the Control Order, 2005. The issue in the
present case is whether drop-in fuel is an essential commodity,
which was not the subject matter of the decision relied upon by
the learned counsel for the petitioners. The reliance placed on the
interim order of the Bombay High Court is also not helpful to the
petitioners, as that Court did not decide that drop-in fuel is not an
essential commodity. What was stated was by way of an interim
order and not a final order. There was no finding by the Court that
drop-in fuel is not a hydrocarbon, nor that it cannot be construed
as an essential commodity regulated under the Control Order,
2005.
38. For the reasons stated herein before, this Court finds that
the writ petitions are misconceived and they are liable to be
dismissed.
39. In the result, both the writ petitions are dismissed.
40. In the circumstances, no order as to costs.
41. Pending interlocutory applications, if any, shall stand
disposed of.
(MUNNURI LAXMAN),J
NK/-
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