M/s. Bhargavi Gas Agencies (Indane LPG Distributor), v. The State of Telangana,

Court: High Court for State of Telangana

Bench: SUREPALLI NANDA

Judgment date: 2026-04-24

Case summary

High Court for State of Telangana judgment dated 2026-04-24. M/s. Bhargavi Gas Agencies (Indane LPG Distributor), v. The State of Telangana,. Read the...

Judgment text

132521 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENW FOURTH DAY OF APRIL TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE MRS JUSTICE SUREPALLI NANDA WRIT PETITION NO: 13700 OF 2026 Between: M/s. Bhargavi Gas Agencies (lndane LPG Distributor), Represented by its Proprietor, P. Hari Kishan, S/o. P. Anjaiah, Aged 64 years, Occ. Business, Office at premises No. 17 -2-2581 1 1 2l A, Kurmaguda, Saidabad, Hyderabad. ..... PETITIONER AND 1. The State of Telangana, represented by its Principal Secretary, Civil Supplies Department, Dr. B. R. Ambedkar Secretiariat, Hyderabad. 2. The Chief Rationing Officer, Civil Supplies Department, Hyderabad. 3. The Commissioner of Civil Supplies, Hyderabad. 4. The Additional Collector (Civil Supplies), Ranga Reddy District' 5. The Assistant Civil Supplies Officer, Malakpet Circle, Hyderabad. .....

RESPONDENTS Petition Under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus, or any other appropriate Writ, Order or Direction, declaring the action of the Sth Respondent in conducting search and seizure panchanama dated 23. 04. 2026 and the impugned Proceedings No. 0512026 dated 23. 04. 2026 issu& by the 2nd Respondent suspending the Form-B License of the Petitioner as illegal, arbitrary, without jurisdiction and violative of Articles 14, 19(1[g) and 21 of the Constitution of lndia and,set aside the same. . . ' JI. , -' -. "-;i. '+ii:+1 -.. -+ |. A. NO:1 rCF 2026 Pelition Under Section 151 cPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to suspend tre operation of the impugned Proceedings No. o5t2o26 dated 23. 04.

2026 issued by the 2nd Respondent, suspending the Form-B Li-cense petitioner. of the I. ANO:2 oF 2026 Petition Under Section 151 cPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the 2nd and Sth Respondents to release the seized stocks of commercial LpG cylinders b the Petitioner, and to permit the Petitioner to continue its LpG operations without refr:rence to the impugned proceedings and the search- cum_ seizure panchananra. counselfor the Petitioner: SRt v. RAVt KIRAN RAo, sENloR couNSEL REPRESEINTTNG SRI THOOM SRINIVAS counselfcn the Respondents : Gp FoR crvrL suppLtEs The Court made the following ORDER HON'BLE MRS. JUSTICE SUREPALLI NANDA WRIT PETITION NO. 137OO OF 2O25 DATED= 24. O4. 2O26 Between: M/s. Bhargavi Gas Agencies (Indiane LPG Distributor) .... Petitioner And The State of Telangana and Others .... Respondents ORDER: Heard Sri V.

Ravi Kiran Rao, learned senior designated representing Sri Thoom Srinivas, learned counsel appearing on behalf of the petitioner and learned Government Pleader for Civil Supplies appearing on behalf of the respondents. prayer 2. The petitioner approached the Court seekinq as under: ".... to issue a Writ of Mandamus, or any other appropriate Writ, Order or Direction, declaring the action of the sth Respondent in conducting search and seizure panchanama dated 23. 04. 2026 and the impugned Proceedings No. 0512026, dated 23. 04. 2026 issued by the 2nd Respondent suspending the Form-B License of the Petitioner as illegal, arbitrary, without jurisdiction and violative of Articles 14, fg(fxg) and 2L of the Constitution of India and set aside the same and pass.... " f 3. averments made in the affidavit filed bv the oetitioner in suooort of the present writ oetition is as under: The petitioner was appointed by Indian Oil Corporation Limited as an LPG distributor in the year 1995. On 22. 04.

2026, the 5th Respondent, along with the staff of the 2nd Respondent, conducted an inspection of the petitioner's gas agency, during which :he 5th Respondent noted certain variations. Without considering the contemporaneous explanation offered by the petitioner's manager and without affording an opportunity to the petitioner to produce supporting transit records, the sth ResponCent concluded the panchanama by recording that the petitioner had contravened the Control Order;Subsequently, the 2nd Respondent passed the impugned proceedings vide Procs. No. 05/2026 dated 23. 04. 2026, without issuing any show-cause notice to the petitioner, in clear contravention of the principles of natural justice. It is further the case of the petitioner that the Form-B licence was suspended by the 2nd Respondent solely on the basis o1'alleged variations in commercial LPG stocks, a subject matter over which the 2nd Respondent has no jurisdiction.

The action of the respondents is in complete disregard of the interim ) orders of this Court dated 3L,07. 2023, passed in W. P. No. 20296 of 2023. Hence, the petitioner has approached this Court by filing the present Writ Petition. 4. PERUSED THE RECORD A. The impuoned proceedings No. OS/2026, dated 23. O4. 2026 passed bv the Chief Rationino Officer, Hvderabad i. e. , 2nd resoondent is extracted hereunder:- Vide read above, the Assistant Civil Supply Officer, Malakpet Circle, Hyderabad has reported that on course of routine inspections on 22- 04-2026, under the supervision of DCSO-Hyderabad, ACSO- Saroornagar Circle, Rangareddy District, CSDT Olo DCSO, Rangareddy District, a team comprising CSDT's, & Civil Supplies Inspectors O/o CRO, Hyderabad, Civil Supplies Task Force Team No-V O/o CCS, TG, Hyderabad and Sales Officer (IOCL) inspected M/s Bhargavi Gas Agencies (IOCL Distributor) in its business premises situated at Pr.

no: L7-2-2581112/A, Kurmaguda, Hyderabad and Godowns at premises situated at survey no. LO6/2 106/3, L0615 & L07/4, Godowns no. 1 & 2, Balapur(V&M), Rangareddy (D) ' During their course of enquiry on 22-04-2026 found Sri Vigneshwar Chary said to be Manager of M/s Bhargavi Gas Agencies conducting the business transactions at the business premises of he said agency, who produced necessary documents for verification. Thereafter, altogether proceeded and inspected the godownqs situated at survey no. t0612, L0613, L0615 & L07/4, Godown:1&2, Balapur(V&M), Rangareddy (D) were Sri P. Han Kishan, said to be the prop of the agency was available for inspection. During course of inspection the inspecting team has noticed the following irregularities committed by the licensee. a) The licensee has stored LPG cylinders outside the authorized storage shed which is extremely hazardous.

b) That the licensee has stored an excess of 20,7O2 kgs of Liquefied Petroleum Gas, than that of the storage capacity of 16,000 kgs. c) That the licensee has failed to update the stocks register. I d) That the licensee has failed to update the stock board e) That tlre licensee has failed to supply portable weighing machines to delivery boys. f) That the licensee has failed to maintain stock receipts of invoice generate,C. When the inspecting team cross verified the. giround stocks w. r. to the book balance, receipts and deliveries noticed a variations of (-) 678 no's of 19kgs Commercial Full Cylinders, (+) 110 no's of 19kgs Commercial empty Cylinders, (-) 44 no's of 47. 5kgs Commercial Full Cylinders and (-) 53 no's of 47. Skgs Commercial Full Cylinders. When the licerrsee was questioned about the above variations and irregularities, he informed that the cylinders are under transit but failed to produce any records/invoices.

Further also failed to give any statemerrt for the other irregularities. The licensee has committed grave irregularities, contravened the Liquefied Petroleum . Gas (Regulation of Supply & Distribution) Order, 2000, Gers Rules, 2OL6 and the Telangana Petroleum Products (L&RS) Order 1980. Then:fore, in exercise of powers delegated under Clause 28(2) of the Telangana Petroleum Products (L&RS) Order, 1980, the Form-B license bearing No. Cgl548,lGR0l95l HYU/LPG issued in the name & style of Mis Bhargavi Gas Agencies (IOCL Distributor) represented by its Prop.. Siri P. Hari Kishan is hereby placed under Suspension, pending detailed enquiry. An appeal against this order lies before the Commissioner of Civil Supplies, Telangana State, Hyderabad within (30) days from the date of receipt of this order. DISCUSSION AND CONCLUSION :- 5. fhe learned counsel apoearinq on behalf of the oetitioner mainly outs-forth the followino submissions:- i) The impugned order vide Procs. No. 05/2026, dated 23.

c,4. 2. A26 passed by the 2"d respondent is in clear violation of principles of natural justice, without providing a reasonabte opportunity to the petitioner to put-forth petitioner's defence and without issuing any prior show-cause notice to the petitioner, respondent Authorities proceeded to pass the impugned order on 23. 0 4. 2Q,26 and conducted seizure panchanama vide receipt, dated 22. 04. 20. 26 indicating panchanama conducted as on 22. 04. 2026 at 5:45 PM. ii) The Chief Rationing Officer, Hyderabad i. e, the zn't respondent in exercise of powers delegated under clause 28(2) of the Telangana Petroleum Products (Licensing and Regulation of Supplies) Order, 1980 passed the impugned order, dated 23. C,4. 2026 suspending the license bearing No. C3I548/CRO lg5|HYU|LPG issued in name and style of M/s. Bhargavi Gas Agency pending detailed enquiry.

iii) This Court had in fact passed interim orders suspending the operation of the Telangana Petroleum Products (Licensing and Regulation of Supplies) Order, 1980 vide its order, dated 3t. O7. 2023 passed in W. P. No. 2O296 of 2O23 and the same is extended until I furth'er orders, vide its order, dated 27. 06. 2Cl24 and the said order is in force as on date. 'Ihe iii) exercise of powers under clause 2g(2) of the Telangana petroleum products (Licensing and Regulation of supplies) order, 19go is itserf without any jurisdiction. oetition. 6. i . i t, t, hereunder:- li 6. The inspecting-li leam noticed that the petitioner is carrying -having on the business of Liquefied petroreum Gas in a prejudiciar ,unn".. It I was that petroleum products were being -fourrd supplied without issuing invoices, requisite records were not maintained at tne premises. and the records were intentionaily not updated. In view of these viorations, the..

inspecting team has seized tr,e foilowinj petroleum produits available with the petitioner. Sl. No. partiiulaE-- _ 1 Domestic IOCL i Cylinders (Full) 115 L,lo,975l- i (@Rs. 965/-) 2 L7 Nit 3 t, Nir : i 4 19 K9's Commercial IOCL Cylinders 1565 36,32,3651- (Full) (@Rs. 2321l-) 5 19 Kg's Commercial IOCL Cylinders 467 Nil (Emotv) 6 19 Kg's Commercial IOCL Cylinders 07 Nil (Defect) 7 47. 5 Kgs Commercial IOCL 108 6,62,2381- (@Rs. 5798. 50/-) Cylinders (Full) 8 47. 5 Kgs Commercial IOCL r62 NII Cylinders (Empty) 9 10 Kgs Domestic Cylinders (Full) 01 6891- (@Rs. 689/-) 10 10 Kqs Domestic Cylinders (Empty) 63 NIL Total 44,06,2671- The Total Market Value of the seized property is Rs. 44,062671- (Rupees Fourty Four Lakhs Six Thousand Two Hundered and Sixty Seven Only). 7.

Basing on the report submitted by the inspecting Officer, the Form-B licensee issued in favour of the petitioner has been suspended pending detailed enquirYr Els per the powers vested under Clause 28(2) of the Telangana Petroleum Products (L&RS) Order, 1980. The above clause permits the licensing authority to interimly suspend the Form-B License issued under the provision of the Telangana Petroleum Products (L&RS) Order, 1980. While keeping the license under suspension, it has been also directed to the Public Sector Oil Company herein IOCL to make immediate necessary arrangements in tagging the registered customers to other agencies, such that no inconvenience is cause to the customers, the same will be completed within a day. 8. The petitioner has liberty to show all the documents/invoices to the licensing authority within (O3) days from the date of seizure of the petroleum products, but failed to do so and filed the said writ petition.

The petitioner in the said writ petition did not submit any of his statements what-so-ever as to why a quantity of excess kilograms of LPG is stored in his godown's premises, which is highly inflammable and hazardous to the public. 9. In the present Ongoing Crisis in the middle east affecting the availability of LPG in the Country, the Ministry of Petroleum & Natural Gas, Government of India has issued orders restricting supply of Commercial LPG cylinders basing on their priorities viz. , . 100o/o to Hospital, Government Institutions, Educational Institutions, Government Canteens, Old age Homes, Orphanages for 100o/o supplies I and public transport, 460/o to Hotels, Restaurants etc, 2oo/o to Industries. The state Government (commissioner of civil Supplies) has issued orders cn the above vide No. ccs ppl(2) /45512026, dated 30. 03. 2026.

The petitioner herein, even after issuing the above orders, during the ongoing crisis, is into diversion of the commercial cylinders without maintaining any accounts and is illelally hoarding huge quantity of commercial LPG than his storage capacity, causing inconvenience to priority sector entities. The above mentioned violatiors have necessitated the inspecting team to initiate action againstthe petitioner in order to prevent illegal hoarding. : ; 7. A bare perusal of the written instructions of the 2"d I respondent, dated 24. 04. 2026 ctearly indicates a clear ' i I admiss;ion on the part of the chief Rationing officer, i I I Hyderabad that the said officer in exercise of the powers I I I vested t under clause 28(2) of the Telangana petroleum I i Products (Licensing and Regulation of suppries) order, I ll lt 198O, and issued the impugned proceedings, dated 23. O4. i! -O26. 8. I'his Court opines that the impugned order, dated 23. o,4. 2r.

026 passed by the 2nd respondent is conirary to the earlier interim order of this court, dated 3t. ol. 20,23 passed in w. P. No. zozgl of 2f/23, which was further extendred through an order of this court, dated I i 27-o6. 2to24 passed in w. p. No. 2o2g6 ot 2C. 23 and the said orders are in force as on date and vide the said orders in fact the very operation of the Telangana Petroleum Products (Licensing and Regulation of Supplies) Order, 1980 had been suspended. The written instructions (referred to and extracted above) of the 2nd respondent, in particutar at para No. 8, clearty indicates that specific stand of the respondents is that the petitioner is at liberty to show all the documents/invoices to the licensing authority within (03) three days from the date of seizure of the petroleum products, but the petitioner had failed to produce the same and approached the Court by filing the present writ petition. 9.

This Court opines that the respondent Authority in fact even failed to give three (O3) days time to the petitioner to put-forth petitioner's case, since admittedly as borne on record the seizure panchanama ts 22. 04. 2026 and the order impugned is dated 23. 04. 20261 the very next day itself. 10. A bare perusal of the record indicates that the order impugned, dated 23. 04. 20. 26 passed by the znd respondent herein and the search & seizure panchanama, dated 22. 0,4. 2o26 is contrary to the Liquefied Petroleum . I l0 Gas (Regulation of Supply and Distribution) Order, 2OOO which iis in force as on date. 11. Tlais Court opines that the impugned order passed by the 2"r respondent, dated 23. 04. 2026 is contrary to the earlier orders passed in W. P,No. 2O296 of 2(J23, dated 3t. O7. i2023t and duly considering the fact as borne on record that the petitioner had not been put on notice prior to the passing of impugned order, dated 23. 0,4.

2026 bV the 2nd respondent and the property of the petitioner had been seized on 22. o,4. 2026, though the written instructions of the znd respondent indicated that the petitioner had been given three (O3) days time to put-forth petitioner's case before the concerned Authorities, but horrever, opportunity had been admittedly denied to the petitioner arbitrarily, prior to passing of the order impugned. 12- (:r) The aforesaid facts and circumstances of the case, (tt) The submissions of the learned counsel appearing on behalf of the petitioner and learned ll Government Pleader for Civil Supplies appearing on behalf of the respondents on record (c) The order of this Court, dated 3L. O7. 2023 passed in W. P. No. 2O296 ol 2O23 and the subsequent order of this Court, dated 27. fl6. 2f/24 in W. P. No. 2O2gG ol 2O23, which is in force as on date. (d) The written instructions of Chief Rationing Officer, Hyderabad, date d 24.

016,2026 placed before this Court by learned Government Pleader for Civil Supplies appearing on behatf of the respondents (referred to and extracted above) (e) The fact as borne on record that the 2'd respondent issued impugned proceedings in exercise of his powers vested under clause 28(2) of the Telangana Petroleum Products (Licensing and Regulation of Supplies) Order, 1980, which had in fact been suspended by this Court and hence, contrary to the earlier orders of this Court, dated 27. 06. 2o24 passed in W. P. No. 2O296 of 2(J23 which are in force as on date. (f) The submission of the learned Government Pleader that the respondents ought to have proceeded against the T t2 petitioner as per the provisions of the Liquefied petroleum Gas (Iteguration of suppry and Distribution) order, 2000. (g) r'he discussion and concrusion as arrived at para Nos, 5 to 1t0 of the present order. nd rcs ltdqlhe Liouefied petroleum Gas (Regulation of suoply and-re. order as to costs.

l3 Miscellaneous petitions, if dry, pending in this Writ I Petition, shall stand closed. Sd/. MOHD. ISMAI DEPUTY ,/TRUE COPY/ \ SECTION OFFICER \ To Dr. B. R. Ambedkar 1. The PrinciPal Secretary, Civil SuPPlies Secretariat, State of Telangana at HYderabad Hyderabad. 2. The Chief Rationing Officer' Civil Supplies 3. The Commissioner of Civil Supplies, Hyderabad Ranga Reddy District. 4. The Additional Collector (Civil Supplies), MalakPet Circle, Hyderabad 5. The Assistant Civil SuPPlies Officer, High Court for the State of Telangana 6. Two CCs to GP FOR CIVIL SUPPLIES, at Hyderabad. [OUI Advocate [oPUC] z. one cc to SRiTHOOM SRlNlvAS, 8. Two CD CoPies SA BS M, I C. C. TODAY HIGH C:OURT DATED: 2410412026 - (-,'-. "-) /,. -.. , $... r j'' '2: [Pfl ? 0? i , 2s ,(. ; ;:r-,,, ,l ORDER I WP. No. 13700 of 2026 ALLOWING THE W. P WTHOUT COSTS. LL t\

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