Lubricating Oils And Greases (Processing, Supply and Distribution Regulation) Order, 1987

• Lubricating Oils And Greases (Processing, Supply and Distribution Regulation) Order, 1987
  • 1. Short title, extent and commencement.
  • 2. Definitions.
  • 3. Restriction on processing and storage of lubricating oils and greases.
  • 4.
  • 5. Application for grant or renewal of a licence.
  • 6. Cancellation of licence.
  • 7. Appeal.
  • 8. Power of entry, search and seizure.
  • 9. Power of Central Government to issue directions.

The Lubricating Oils And Greases (Processing, Supply and Distribution Regulation) Order, 1987

Published vide Notification No. G.S.R. 233, dated March, 20, 1987, published in the Gazette of India, Part 2, Section 3(1) dated 28th March, 1987

Last Updated 26th July, 2019 [act3445]

1. Short title, extent and commencement. – (1) This Order may be called the Lubricating Oils and Greases (Processing Supply and Distribution Regulation) Order, 1987.
(2) It extends to the whole of India.
(3) It shall come into force on the 1st day of April, 1987.
2. Definitions. – In this Order, unless the context otherwise requires-

(a) “competent authority” means any person or authority authorised by a State Government or a Union territory administration by notification in the official Gazette, to exercise the powers and to perform the functions of the competent authority under this Order for such area as may be specified in the notification;

(b) “lubricating oils and greases” shall have the meaning assigned to them in item number 11-A of the First Schedule to the Central Excise and Salt Act, 1944 (1 of 1944) and shall include any speciality oil falling under item number 68 of that Schedule;

(c) “processor” means any person carrying on or proposing to carry on the business of processing, manufacturing, blending, compounding, packaging, or refining or sale of any lubricating oil and grease and includes his representative or agent but does not include the oil companies specified in Schedule 1 appended to this Order;

(d) without prejudice to the meaning assigned to “adulteration” under the Prevention of Food Adulteration Act, 1954 (37 of 1954), any lubricating oil or grease shall be deemed to be adulterated if the same does not meet the specifications declared therefor by the processor.

3. Restriction on processing and storage of lubricating oils and greases. – No person shall carry on the business of a processor except under and in accordance with the terms and conditions of a valid licence granted to him under this Order.
4. No person shall carry on the business of processing, manufacturing, blending, compounding, packaging, refining, re-refining, selling or transporting any lubricating oil or grease which has been adulterated.
5. Application for grant or renewal of a licence. – (1) Any person desiring to carry on the business of a processor shall make an application to the competent authority in Form 1 appended to this Order for the grant or renewal of a licence, together with a fee of rupees twenty-five.
(2) On receipt of an application under sub-clause (1) the competent authority after making such enquiry as it considers necessary, shall by order in writing, either grant or renew the licence in Form 2 or refuse to grant or renew the same.
(3) Where the competent authority refuses to grant or renew a licence it shall record the reasons for so doing and a copy of the reasons so recorded shall be furnished to the applicant.
(4) In granting or refusing to grant or renew a licence the competent authority shall have regard to matters such as the following, namely,-

(a) the existing or proposed facilities for manufacturing and testing lubricant and grease;

(b) the availability of base stocks, raw materials and additives for manufacturing lubricant and grease; and

(c) the types and specifications of lubricant and grease which the processor is manufacturing or proposing to manufacture.

(5) All existing processors shall obtain the licence under this Order within six months of the commencement thereof.
(6) An application for the renewal of licence shall be made three months before the date of expiry of the existing licence.
(7) Every licence granted under this Order shall remain valid, unless renewed for a further period of five years, till the end of five years from the date of its issue or till it is cancelled under clause 6, whichever is earlier.
6. Cancellation of licence. – The competent authority may, without prejudice to any other action that may be taken against a processor under the Essential Commodities Act, 1955 (10 of 1955), order in writing cancel a licence for breach of any of the terms and conditions of the licence and a copy of the order shall be furnished to the processor:
Provided that no licence shall be cancelled under this clause unless the processor has been given reasonable opportunity of being heard in the matter.
7. Appeal. – Any person aggrieved by an order made by the competent authority under Clause 5 or under Clause 6 may, within thirty days of the receipt of a copy of the Order by him, prefer an appeal to the State Government and the State Government may after giving the applicant an opportunity of being heard confirm, reverse or modify such order.
8. Power of entry, search and seizure. – (1) Any police officer not below the rank of an Inspector or any other officer of Government of rank equivalent or higher thereto, authorised in this behalf by the Central Government or a State Government may, with a view to securing compliance with this Order or to satisfying himself that this Order or any order made thereunder has been complied with-

(a) enter and search any place, premises, vessel or vehicle which the officer has reason to believe, has been, or is about to be, used for the contravention of this Order,

(b) seize-

(i) stocks of lubricating oils, greases and processing equipments,

(ii) any package, covering or receptacle in which lubricating oils and greases are found, and

(iii) any animal, vehicle, vessel or other conveyance used in carrying lubricating oils and greases, which the officer has reason to believe has been, or is being or is about to be, used for contravention of this Order;

(c) send samples of any lubricating oil or grease seized under sub-paragraph (i) of paragraph (b) to any of the laboratories mentioned in Schedule II appended to this Order, for analysis with a view to knowing the nature and extent of adulteration.

(2) The provision of Section 100 of the Code of. Criminal Procedure, 1973 (2 of 1974) relating to search and seizure shall, as far as may, apply to searches and seizures under this Order.
9. Power of Central Government to issue directions. – The Central Government may, from time to time, by general or special order, issue to any processor such directions as it consider necessary regarding the processing, storage, transport and disposal of lubricant and grease and upon the issue of such directions, such processor shall be bound to comply therewith.

Schedule I

[See Clause 2(c)]

Names of Oil Companies

Form I

[See Clause 5(1)]

Processing, Manufacturing, Blending, Refining, Compounding, Packaging, Re-refining of Lubricant and Grease

Application for the grant of a licence to carry on the profession of a processor

Note. – This application form is for registration of an existing unit, renewal of a licence as well as for a unit proposed to be established and is to be filled in accordingly. Please state whether application is being made for.

(i) Licensing of an existing unit,

(ii) Licensing of a unit to be set up, or

(iii) Renewal of a licence:

(1) Name and full address of the processor.
(2) Name and address of the partners/directors.
(3) Location of the Unit.
(4) Capital investment in the project:

(a) Land.

(b) Building.

(c) Plant and Machinery.

(5) Date of commencement of production.
(6) Capacity of the Plant (Kilo Litres)
(7) No. of Shifts per day.
(8) Details of production.
(9) The sources and details of procurement of base oils and additives.
(10) Process details.

A brief description of the process.

(11) Storage Capacity available/planned:

(a) for raw material,

(b) for intermediate products,

(c) for finished products.

(12) Statement of utilities giving sources, quantities, assurance of supply:

Electricity (kWh).

Fuel Oil (kl).

Coal (Tonnes).

Water.

Others.

(13) Total manpower employed/to be employed.
(14) Plant Facility (existing or planned).

Please give details of equipment including laboratory equipment, for quality control.

(15) Statutory regulations on environment.

(1) Whether clearance from the concerned environmental authority has been obtained ?

(2) If yes, give particulars.

(16) Any additional information.

Signature of applicant…………………..
Name (In Block letters)…………………

Place……………………….
Date………………………..

Form No. 2.

[See Clause 5(2)]

Form of Licence for Registration of an existing Unit/Proposed Unit/Renewal of Licence

Licence No……………………………
Date of Issue…………………………
Valid up to……………………………
Licence to carry on the business of a processor is hereby granted to the party, at the place and subject to the terms and conditions mentioned below and to the provisions of the Lubricating Oils and Greases (Processing, Supply and Distribution Regulation) Order, 1987.
Description of the party, the location of the unit and the specifications of the product(s):

1. (i) Full name of the holder of the licence.

(ii) Address in full.

2. Location of the unit.

3. Location of the storage attached to the unit.

4. Capacity of the unit (in kilo litres).

5. Products produced/to be produced and their specifications.

Products:

(i) Motor Oil

(ii) Gear Oils

(iii) Industrial Oils

(iv) Greases

(v) Others (specify).

(Relevant ISI Specifications, if product is of ISI specification, otherwise details of the specifications to which produced or proposed to be produced).
If licence has been renewed, particulars of the licence renewed.

Terms and Conditions of the Licence

1. The licence is issued subject to the provisions of the Lubricating Oils and Greases (Processing, Supply and Distribution Regulation) Order, 1987.
2. The holder of the licence shall maintain correctly and completely such records as are necessary for verifying the particulars given in the application form of the applicant and this licence granted to him.
3. The holder of the licence shall permit an officer authorised by the competent authority under the provisions of the Lubricating Oils and Greases (Processing, Supply and Distribution Regulation) Order, 1987 to inspect the places where processing of lubricating oils or greases is being undertaken, shall furnish samples thereof shall permit on demand by such officer such records or documents in his possession or under his control and shall allow to enter or search any premises and seize any article to which this Order applies.

Competent Authority.
State of…………………………………….

Schedule II

[See Clause 8 (1) (c)]

Laboratories for Testing of Petroleum Products Samples

(Subject to the availability of requisite facilities)

Hindustan Petroleum Corporation Ltd. Laboratories.