# M/s U.P. Petroleum Traders' Asso. & another v. Union of India and others

- **Citation:** High Court of Judicature at Allahabad #39641
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2000
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/m-s-u-p-petroleum-traders-asso-another-v-union-of-india-and-others-39641
- **Pages:** 8

## Text

1ALL] M/s U.P. Petroleum Traders' Asso. & another V. Union of India and others

27
17. In the circumstances, this Court is of
the opinion that the learned Judge was not in
error when he quashed the induction of 31
new members, to participate in an election,
and consequently gave a direction to the
District Inspector of School to hold a fresh
election.

The judgement is affirmed.

The appeal is dismissed with costs.
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By the Court

1. The Petitioners have come up with
prayers to (i) declare Section 39, 60 and 61 of
the Standards of Weights and Measures
(Enforcement) Act, 1985 (hereafter referred to
as the Act) as unconstitutional and void and
(ii) restrain the Respondents from prosecuting
them for violation of the aforementioned
provisions of the Act.

2. Petitioner No.1 claims itself to be
representative
body
of
the
dealers
of
petroleum products in our State, duly
registered with the Registrar- Chits, Firms and
Societies, U.P., Lucknow and its registered
office at Kanpur. Petitioner no.2 is a petrol
pump owner and dealer appointed by the
Indian Oil Corporation situate at G.T. Road,
Bamrauli, Allahabad.
INDIAN LAW REPORTS ALLAHABAD SERIES [2000
28

The Pleadings :-

3. Shortly put the case of the Petitioners is
to this effect :-

The petrol and diesel supplied by the Oil
Companies, are stored in an underground tank
from which retail supply is made through a
measure which is a mechanical process
through machines, manufactured by leading
manufacturers (1) M/s Larson & Tourbo and
(2) M/s Mercantile and Industrial Company
Limited, which are maintained by them;
according to the Brochures issued by the
aforementioned manufacturers (as contained
in Annexures 1 and 2 ) there are five causes
for inaccurate measurements, namely, (i)
Improper adjustment of the calibrating wheel;
(ii) Swollen 'O' ring GM 50002; (iii) Worn
scaling surface, i.e. valve, valve seal and
valve seat; (iv) Worn piston cups, and (v)
inaccurate test can; these machines are
beyond the control of the petitioners, besides
the faults can occur at any point of time; at the
time
of
installation
of
these machines
variation of a range up to 0.6% and while
delivering 5 litres of oil variation between
4.86 liters to 5.16 liters i.e. 0.3% have been
found, which is apparent from the test checks
carried out by the manufacturers, as contained
in Annexures 3 and 4; the Government being
alive to these natural variations, has been
issuing Orders dated 5th September, 1977 and
5th September, 1975 (Copies appended as
Annexures 5 and 6) to the effect that a dealer
should not be prosecuted merely on account
of variations unless there are solid reasons or
proof of dishonesty; the legislation in question
is a new one; Section 39 and 60 of the Act are
totally unreasonable and they infringe upon
their fundamental rights under Article 19 (1)
(g) and Article 21 of the Constitution of India
and the presumptions mentioned in Section 60
and 61 of the Act per se imposes wholly
unreasonable restriction on the fundamental
rights of the petitioner to carry on their trade,
business and occupation as guaranteed under
Article 19 (1) (g) of the Constitution.

4. In the Counter Affidavit (filed on
7.12.1998; and a copy of which was sent by
Registered Post on 30.11.1998 to Petitioner
No2) of the Respondents no. 2 and 3
following facts have been stated :-

The stand that until 1984 there was no
comprehensive provision for regulating the
Weights and Measures is not true inasmuch as
there were specific provisions to regulate and
enquire the commercial transactions under the
U.P. Weights and Measures (Enforcement)
Act, 1959 and the Rules framed thereunder;
the petitioners are required to maintain their
dispensing pumps in such a way so as to
deliver correct quantity; the Act and the Rules
made thereunder provide range of variation
0.6% in excess and 0.3% in deficiency at the
time of Inspection of the dispensing pumps;
the G.O. dated 5th September, 1977, requires
the petrol/diesel dealers to check the quantity
delivered by the dispensing pumps each and
every morning and on finding any deficiency
they are required to inform in that regard to
the Oil Company and stop the sale till the
dispensing pump is corrected; it does not
prohibit
the
Weights
and
Measures
Department from prosecuting the retail outlets of the Oil Companies on finding
committal of malpractice's by the owners of
the retail outlets/dispensing pumps, rather it
provides guidance that only on finding solid
proof of tempering or dishonesty, prosecution
should be lodged; the officers of the
Department follow the guide lines though the
provisions of the Act and the Rules will
prevail; the said G.O. should not be
misinterpreted by the petitioners for their own
benefits; once weights and measures are duly
verified and stamped by the Inspector of
Weights and Measures they shall be deemed
to conform to the standards prescribed under
the Act; a certificate is issued under Section
24(4) of the Act but it is not admitted that a
dealer cannot be prosecuted, if defects
1ALL] M/s U.P. Petroleum Traders' Asso. & another V. Union of India and others

29
develop during the course of the currency of
the certificate because such defects can be
deliberately caused by the dispensing pump
owners by adopting various illegal ways and
means and effecting manipulations by several
devices in the machines; Circular dated 23rd
December, 1989 was issued by the Ministry
of Supplies (Civil and Food) (Department of
civil Supplies), Government of India, which
indicate that the Directorate was considering
details of alternative arrangement to be
worked out by an expert panel regarding the
verification of such dispensing pumps which
deliver
short quantities; considering the
variation in speed in dispensing pumps while
the products to the consumers appropriate
amendment has been made in this regard in
the Rules by notification dated 15th July, 1991
(being filed as C.A.-1) though the Oil
Companies have not yet made provision in
dispensing pumps as per the amended Rules;
the permissible variations allowed is upto
0.6% that is to say 30 ml. In 5 liters at the
time
of
verification
to
condone minor
variation only to develop in course of use of
the dispensing pumps mechanism for delivery
purposes; the said circular does not indicate
that this variation has been allowed in
deficiency also; the Act aims to safeguard the
interest of the consumers and that is why no
variation either at the time of verification or at
the time of inspection is allowed in deficiency
beyond tolerance limit prescribed under the
Act or the Rules; the stand of the petitioners
that they have absolutely no control over the
maintenance of measuring Machines is not
correct and they cannot be exonerated from
their responsibilities in not keeping them in
perfect condition with a view to ensure correct
delivery; the petitioners have deliberately not
impleaded the Oil Companies to have their
version in this regard though they have tried
to fix up the entire responsibility on them; the
Oil Companies have been issuing marketing
guide lines and suitable instructions to their
dealers time and again to maintain accuracy of
dispensing pumps so that the consumers
should not be cheated by short delivery; the
reports of the Companies also suggests that
they are taking action against such erring
dealers, who are found involved in cheating
consumers by their fraudulent activities and
other
malpractice
viz.
short
delivery,
overcharging , adulteration etc.; it is prima
facie duty of the users of the dispensing
pumps to maintain its accuracy with the help
and active association of their Principals i.e.
the Oil Companies ; it is not true that the
defects may not come to the knowledge of the
petitioners for months altogether when they
are required to check their pumps every
morning and tally the stock position stored in
the tanks with their daily records of the sale
balance, and thus they can very well know the
defects every day; the dealers shall also be
held responsible for the abatement of the
offence being committed by them by their
connivance in causing defects in the machines
either
deliberately
or
by
their
callous
negligence in regard to maintenance of the
accuracy of the machines; [ the errors
specified in the circular do not permit dealers
to cheat consumers by way of short delivery;
Section 39, 60 and 61 along with section 37 of
the Act clearly deal with various aspects in
regard to ensuring correct delivery to the
consumers and provide suitable punishment of
the dealers found guilty of committing breach
of the aforementioned provisions, which are
reasonable and in no way violate Articles 19
(1) (g) and 21 of the Constitution; the
petitioners are neither harassed nor are vexed
by the Officers of the Department, rather they
are prosecuted only when they are found
committing
deliberate
breach
of
the
aforementioned provisions:] none of the
grounds taken are tenable in law and the
petitioners are not entitled to any relief under
Article 226 of the Constitution; and their
petition is liable to be dismissed with costs.

5. No Rejoinder to the aforesaid Counter
has been filed by the petitioners.
INDIAN LAW REPORTS ALLAHABAD SERIES [2000
30
The Submissions:-

6. Sri Ravi Kant, learned counsel
appearing
on
behalf
of
the
petitioner,
contended as follows:-

(i) It is impossible for the petitioner to
have a machine, delivery petrol/diesel, free
from any fault. In view of the inherent defect
in the machines the Government itself has
recognised variation 0.6% while delivering
five liters of petrol/diesel and has issued
G.O.'s yet prosecution has been made in case
of even such a variation. Restriction in the
variation between the actual weight being
inherent it is per se excessive and not
consummate
with
public
interest
and
accordingly violative of Article 19 (1) (g) of
the Constitution of India.

(ii) Sections 60 and 61 of the Act create a
presumption regarding guilt ruling out Mens
rea which ultravires the Constitution.

In order to support his submission he
placed reliance on Chintamanrao and another
v. The State of Madhya Pradesh A.I.R.1951
S.C.118 (Paragraph 7); Ravula Hariprasada
Rao v. The State A.I.R.1951 S.C. 204 (at page
206); The State of Madras v. V.G.Row
A.I.R.1952
S.C.
196
(Paragraph
15);
Messears Dwarika Prasad Laxmi Narain v.
State of Uttar Pradesh and others A.I.R.1954
S.C.
224
(Paragraph
6);
M/s.
Laxmi
Khandsari etc. v. State of U.P. and others
A.I.R.1981 S.C. 873 (Paragraph 12,14 and
19); P.P.Enterprises etc. etc. v. Union of India
and others etc. A.I.R.1982 S.C. 1016
(Paragraph 8 and 10); Peerless Generall
Finance and Investment Co. Ltd. And another
v. Reserve Bank of India A.I.R. 1992 S.C.
1033(Paragraph 3 and 49); Adhunik Grah
Nirman Sahkari Samiti Ltd.etc. v. State of
Rajasthan and another A.I.R.1989 S.C. 867 (at
page 873); The Corporation of Calcutta v.
Calcutta
Tramways
Co.
Ltd.
Calcutta
A.I.R.1964 S.C. 1279(Paragraph 4 and 6);
Indo China Steam Navigation Co. Ltd. v.
Union of India and others A.I.R. 1964 S.C.
1140 (at page 1149); State of Maharashtra v.
Mayer Hans George A.I.R. 1965 S.C. 722 (At
Page 736); Indra Sain v. State of Punjab
A.I.R.1973 S.C. 2309 (At Page 2311); Kartar
Singh v. State of Punjab 1994(2) J.T.423 (At
page 464) AND Sanjay Dutt v. The State
through C.B.I. Bombay 1994(5) J.T.(S.C) (At
Page 540).

7. Sri Krishna Kumar Parekh, the learned
Additional Standing Counsel of the Union
appearing for the Respondent no.1 the Union
of India-contended as follows:-

(i) The provisions in question do not
ultravires Articles 14,19 (1)(g) and 21 of the
Constitution of India.

(ii) we are having in our country best
software technology and computer and/or
with the help of micro gauge and miscroscope
so as to have variation upto .005 only at the
time of delivery. In fact on many petrol
pumps machines with computers have been
installed for supplying petrol and diesel.

(iii) in fact the petitioners are adopting
dubious methods at the time of delivery of
petrol/diesel to the consumers. Some of them
are even using adulterated petrol/diesel which
is causing damage to the engine of the vehicle
of the consumer. In support of his contentions
he placed reliance on A.K. Gopalan vs. State
of Madras, 1950 S.C.R.88 and Maneka
Gandhi vs. Union of India, 1978 S.C. 597.
Thus there is no merit in the submissions
made by Mr. Ravi Kant.

(iv) The Oil Companies are necessary
parties, who have been left out and thus this
writ petition is liable to be dismissed.

8. Sri P.K. Bisaria, learned Standing
Counsel
appearing
on
behalf
of
the
Respondents No. 2 and 3 contended as
follows :
1ALL] M/s U.P. Petroleum Traders' Asso. & another V. Union of India and others

31
(i) The impugned section safeguard the
protection of the consumers from being
cheated by unscrupulous dealers/traders who
indulge in delivering lessor quantum of petrol/
diesel by using substandard weight and
measures. The sections in question were
enacted by the Parliament to safeguard the
interest of the consumers, which by no stretch
of imagination can be dubbed as arbitrary and
unreasonable
and/or
violative
of
the
constitutional
mandate
enshrined
under
Articles 14, 19(1) (g) and 21 of the
Constitution of India.
(ii) In our State there was U.P. Weights and
Measures Act,1959 and 1960 Rules framed
thereunder,
but
having
found
them
insufficient to curb the malpractice of the
unscrupulous traders the Parliament enacted
Standards of Weights and Measures Act,
1966; Standards of Weights and Measures
(Enforcement) Act, 1985 and Standards of
Weights and Measures (General) Rules,1987
were framed with a view to provide more
severe punishment for those dealers who
intended
to
deceive
and
cheat
the
consumers/buyers by delivering fraudulently
lesser quality of petroleum products by using
non standard and false weights and measures.

(iii) The range of variation in the machine is
only minor one. The Oil Companies have
been issuing instructions to the petitioners to
maintain accuracy in supply of petrol/diesel
so that the consumers are not cheated by short
delivery. They have been even taking positive
action against such dealers who have been
found involved in cheating the consumers by
their fraudulent activities and malpractice in
supplying
short
delivery
of
the
fuel,
overcharging, adulteration etc. which stand
corroborated by the very documents appended
as Annexure-1 to the written submissions
made by Sri Ravi Kant. Accordingly there is
no merit in the submission of Mr. Ravi Kant
and the writ petition is fit to be dismissed
summarily.

8.1 When this case was listed for further
hearing on 17.12.1998 the learned counsel for
the Parties informed us that no further
argument will be advanced by them.

9. Our findings :-

9.1 The need to have correct balances,
weights and measures is not a new need. In
our Country more than 2200 year ago
Kautilya in his book 'Arthshastra' Adhyaksh
Prachar Dwitiya Adhikaran, 19th Chapter, has
stated as follows :-

"

6¡¡L¡®¡¡¡¢¡%¡( _¡¡¢L¡¡1⁄4Y¡¡¢[¡%¡( %¡(¡¡L¡1⁄4

¡_¡¡¢L¡¡¢¡Q

¡¡L¡¡ ¡¡Q ^L¡¡¢¡¡¡¢L¡¡K¡:

"

In English Translation it means : The balance
& Weights should be examined at the interval
of every four months. Those who do not get
examined at the Schedule time they should be
awarded an economic punishment of 27-1/2
Pan"

9.2 Even around 7th Century the Holy-Quran,
Verse (Aayat) No.35 Surah 17-A stated thus :

" Give full measure when ye
Measure, and weight
With a balance that is straight-:
That is better and fairer
In the final determination."

10.
Through
the
Preamble
of
the
Constitution an attempt has been made to
secure to all its citizen, inter alia, social and
economic justice; and through Article 19 (2) it
has been provided that nothing in sub clause
(g) of Article 19 (1) will prevent the State
(means Parliament or the Stated Legislature)
from making any law imposing reasonable
restriction on the exercise of the right to carry
on
any
occupation,
trade
or
business
guaranteed under Article 19 (1)(g). Thus, in
order to achieve the objective of securing
social and economic justice, and the directive
principle of the State policy under Articles 38
and 39 the Parliament enacted ' The standards
INDIAN LAW REPORTS ALLAHABAD SERIES [2000
32
of Weight and Measures Act,1976 in order to
establish standards of weights and measures,
to regulate inter-state trade or commerce in
weights, measures and other goods, which are
sold or distributed by weight, measures or
number; and to provide for matters connected
therewith
or
incidental
thereto.
The
Parliament in 1985 enacted the instant Act to
provide for the enforcement of the standards
of weights and measures established by or
under the aforesaid Act, and for matters
connected therewith or incidental thereto. The
Act came into force in our State with effect
from January 26, 1990, the day appointed by
the Governor in exercise of powers under
Section 1(3) of the Act.

Section 39, of the Act reads thus :-

"39. Penalty for keeping non standard weights
or
measures
for
use
and
for
other
contraventions,--

(1) Whoever keeps any weight or measures
other than the standard weight or measure in
any premises in such circumstances as to
indicate that such weight or measures is
being, or is likely to be, used for any
(a) weightment or measurement, or
(b) transaction or for industrial production or
for protection, shall be punished with fine
which may extend to two thousand rupees,
and, for the second of subsequent offence,
with imprisonment for a term which may
extend to one year and also with fine.

(2) Whoever,--

(i) in selling any article or thing by weight,
measure or number, delivers or cause to be
delivered to the purchaser any quantity or
number of that article or thing less than the
quantity or number contracted for and paid
for, or
(ii) in rendering any service by weight,
measure or number, renders that service less
than the service contracted for and paid for, or
(iii) in buying any article or thing by
weight, measure or numbers, fraudulently
receives, or causes to be received any quantity
or number of that article or thing in excess of
the quantity or number contracted for and paid
for, or
(iv) in obtaining any service by weight,
measure or number, obtains that service in
excess of the service contracted for and paid
for;

shall be punished with fine which may extend
to five thousand rupees, and for the second or
subsequent offence, with imprisonment for a
term which may extend to five years and also
with fine.

(3)
Whoever
enters,
after
the
commencement of this Act, into any contract
or other agreement (not being a contract or
other agreement for export) in which any
weight, measure or number is expressed in
terms of any standard other than the standard
weight or measures, shall be punished with
fine which may extend to two thousand rupees
and, for the second or subsequent offence,
with imprisonment for a term which may
extend to one year and also with fine."

11.1
Its perusal shows that Sub-Section
(1) prohibits keeping of sub-standards weights
or measures with an intention to use them for
weighment or measure or transaction or for
industrial production or even for protection
and on the first occasion shall be fined upto
Rs.2000/- and on second time or subsequent
time with imprisonment upto 1 year with fine.
Sub-section 2 (i) provides punishment for
those, who are found guilty in selling any
article or thing by weight, measures or
number, delivers to purchasers less than the
quantity contracted and paid for. Sub-section
2 (ii) likewise deals with persons who are
rendering any service. Sub- section 2(iii)
likewise deals with such persons who in
buying fraudulently receive or cause to be
received in excess. Sub-section 2 (iv) deals
with those who obtain service, and prescribes
1ALL] M/s U.P. Petroleum Traders' Asso. & another V. Union of India and others

33
punishment with fine upto Rs.5000/- on first
account, and for second and subsequent time,
with imprisonment upto 5 years alongwith
fine Sub-section (3) imposes punishment of
fine upto Rs.2000/- on first count, and second
and subsequent acts imprisonment upto 1 year
and with fine for those who enter into any
contract or agreement except for export in
which
any
weight/measure/number
is
expressed other than the standard ones.

12.Section 60 of the Act reads thus :-

"60. Presumption to be made in certain,
cases,-
(1) If any person
(a) makes or manufactures, or causes to be
made or manufactured, any false weight or
measures, or
(b) uses, or causes to be used, any false or
unverified
weight
or
measure
in
any
transaction or for industrial production or for
protection, or
(c) sells, distributes, delivers or otherwise
transfers, or causes to be sold, distributed,
delivered or otherwise transferred, any false
or unverified weight or measure,
it shall be presumed, until then contrary is
proved, that he had done so with the
knowledge that the weight or measure was a
false or unverified weight or measure, as the
case may be.

(2) If any person has in his possession,
custody or control any false or unverified
weight or measure in such circumstances as to
indicate that such weight or measure is likely
to be used in any transaction or for industrial
production or for protection, it shall be
presumed, until the contrary is proved, that
such false or unverified weight or measure
was possessed, held or controlled by such
person with the intention of using the same in
any transaction or for industrial production or
for protection."

12.1
This Section talks of a statutory
presumption
against
such
persons
who
indulge in the acts mentioned unless contrary
is proved.
13. Section 61 of the Act reads thus :-

"61. When employer to be deemed to have
abetted an offence,--(1) Any employer, who
knows or has reason to believe that any
persons employed by him has, in the course of
such employment, contravened and provision
of this Act or any rule made thereunder, such
be deemed to have abetted an offence against
this Act :

Provided that no such abatement shall be
deemed to have taken place if such employer
has, before the expiry of seven days from, the
date on which,
(a) he comes to know of the contravention,
or
(b) he has reason to believe that such
contravention has been made, intimated in
writing, to the Controller the name of the
person by whom such contravention was
made and the date and other particulars of
such contravention.
(2) Whoever is deemed under sub-section
(1) to have abetted an offence against this Act
shall be punished with imprisonment for a
term which may extend to one year, or with
fine which may extend to two thousand
rupees, or with both, and, for the second or
subsequent offence, with imprisonment for a
term which may extend to five years and also
with fine.

Explanation Dismissal or termination of
service of an employee after the expiry of the
period specified in the proviso to sub-section
(1) shall not absolve any employer of his
liability under this sub-section."

13.1 The aforesaid Section takes care of
those who abate the acts constituting the
offence/offences.

14. The consumers are now said to be
kings of the market. Petrol is being called
Petro-Gold. One of the well known slogans of
INDIAN LAW REPORTS ALLAHABAD SERIES [2000
34
the 'Bharat Petroleum' is to the effect that
every drop of Petrol should be saved as it is
not going to last for ever. Obviously the
emphasis is on its limited resources and on its
weight/measurement and utilisation to the
maximum.
The
Parliament
has
made
endeavours to protect the consumer's interest.
The law stands well settled that there is a
presumption of constitutionality of an Act and
the onus lies on the person challenging its
vires.
Having
gone
through
the
aforementioned sections and other provisions
of the Act we find substance in the
contentions of Mr. Parekh and Mr. Bisaria
both.

15.
By
installation
of
computerised
machines in the petrol pumps the variations
have now been brought to the minimal as
claimed by the learned Standing counsel for
the Union, which has not been disputed before
us. Unfortunately the Petitioners have not
impleaded
the
Oil
Companies,
whose
presence would have been useful to know
their view points. Thus, the assertion of the
petitioners that it is impossible for them to
install foolproof machines, is not acceptable
to us. The submission in this regard being
based on mere self serving statements of
petitioner no.2 is not worthy of acceptance.
True it is that is well known dectum that the
law does not expect a party to do the
impossible- "impossibilium mulla obligatio
est"- but here we do find that the law is asking
the petitioners to do impossible rather the
Petitioners have been given a latitude to
supply upto 0.3 % deficient fuel to the
consumers out of 5 litres. It, thus, cannot be
held to be unreasonable or an arbitrary
legislation. The Act is a socio economic
legislation which intends to remedy the evil of
short
supply
of
Petrol/Diesel/or
any
commodity which may be purchased by any
consumer.

16. We have also perused the judgement
relied upon by Sri Ravi Kant. They do not
support his contentions as claimed.
17. We thus do not see any vice of
arbitrariness or unreasonableness so as to hold
these sections as violative of Articles 14, 19
(1) (g) and 21 of the Constitution of India.

18. For the reasons aforementioned we
dismiss this writ petition but without cost.

19. The office is directed to hand over a
copy of this order within one week to (i) Sri
K.K. Parekh, the learned Additional Standing
Counsel of the Union and (ii) Sri P.K.Bisaria,
learned Standing Counsel of the State of U.P.
both for its intimation to the authorities
concerned.

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