MUHAMMAD HAFEEZ vs GOVERNMENT OF THE PUNJAB through Secretary Home Department Civil Secretariat, Lahore Ss

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MUHAMMAD HAFEEZ VS GOVERNMENT OF THE PUNJAB through Secretary Home Department Civil Secretariat, Lahore Ss.2(a), 2(i), 3(1), 4, 7, 8, 9, 23(3A), 23(3B) & 23(3C) [as amended by Petroleum Amendment Act (XXVI of 2025)], Ss.23(3A)---Petroleum Rules, 1937, Rr.29, 90, 114, 115 & 131---Constitution of Pakistan, Art.199---Constitutional petition---Sealing of retail petrol pumps outlets, challenge to---District Administration lacking jurisdiction, plea of---Legality---Valid storage licence as condition precedent for lawful storage and sale of petroleum, requirement of---Scope---Brief facts of the matter were that the petitioners (petrol pumps operators) filed constitutional petitions under Art.199 of the Constitution challenging the actions of the District Administration whereby their outlets were sealed or threatened with sealing on the ground that they had not obtained or renewed Form-K, the storage licence required under the Petroleum Act, 1934 and the Petroleum Rules, 1937---The controversy centered on "whether retail fuel stations could lawfully store and sell petroleum without a valid Form-K licence issued by the Department of Explosives, and whether the Deputy Commissioner or authorized officers had statutory authority under the amended provisions of the Petroleum Act, 1934 (as amended by the Petroleum (Amendment) Act, 2025) to seal such facilities for non-compliance?"---Held: The contention that District Administration had no authority to proceed against retail outlets for want of Form-K was misconceived and could not be accepted---Section 3(1) of the Act, 1934 provided that activities of import, transport and storage of petroleum had to comply with rules made under S.4---Section 2(i) of the Act, 1934 was also material, as it defined "illegal sale of petroleum" to mean the sale of petroleum products without a valid storage licence granted under the Act and the rules made thereunder---Consistent with this scheme, the Rules, 1937 repeatedly underscored the requirement of a storage licence, in particular, Rule 29 assumed central importance as it placed a restriction upon the delivery and dispatch of petroleum to any person other than the holder of a storage licence (or his authorized agent), subject to the limited exceptions provided therein---The exemptions contained under Rr.7, 8 and 9 of the Rules, 1937 did not extend to an ordinary retail filling station/petrol pump---The licensing regime operated as an ex ante safety filter---Before petroleum was permitted to be kept at a site for commercial sale, the competent authority was required to satisfy itself through scrutiny and inspection that the installation conformed to prescribed engineering and safety parameters such as the suitability and integrity of tanks, vents and pipelines, spill containment and leak prevention arrangements, electrical safety and earthing to reduce ignition from static or short-circuits and the adequacy of fire-fighting and emergency response measure---Regarding pivotal objection of lack of jurisdiction, the same stood squarely answered by the legislature itself---By the Petroleum (Amendment) Act, 2025, the Act, 1934 had been materially strengthened through insertion of Ss.23(3A), 23(3B) and 23(3C), whereby the powers of on-ground enforcement i.e., sealing/closure of illegal facilities and confiscation in specified situations, had been expressly vested in the Deputy Commissioner and, where duly authorized, an officer not below the rank of Assistant Commissioner---Constitutional petitions were bereft of merit and were disposed of, in circumstances.

MUHAMMAD HAFEEZ vs GOVERNMENT OF THE PUNJAB through Secretary Home Department Civil Secretariat, Lahore Ss — 2026 CLC 1002 LAHORE-HIGH-COURT-LAHORE

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