Full Judgment Text
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PETITIONER:
YOGESH KUMAR AND ORS.
Vs.
RESPONDENT:
BHARAT PETROLEUM CORPN. LTD. AND ORS.
DATE OF JUDGMENT10/08/1990
BENCH:
KANIA, M.H.
BENCH:
KANIA, M.H.
KULDIP SINGH (J)
CITATION:
1990 AIR 2216 1990 SCC (4) 49
JT 1990 529 1990 SCALE 278
ACT:
Petroleum Rules, 1976: Rule. 151--Cancellation of No
Objection Certificate granted under Rule 144 for running
petrol pump--Interpretation of rule--Clarification of.
HEADNOTE:
The No Objection Certificate granted to Respondent No. 1
Corporation under Rule 144 of the Petroleum Rules 1976 for
running a petrol pump set up by it on a lease hold site was
cancelled by respondent No. 5, the District Magistrate under
Rule 151 of the Rules. This order was upheld by the Commis-
sioner, but was set aside by the High Court, on appeal.
Hence the special leave petition against the High Court’s
order.
Dismissing the special leave petition, this Court,
HELD: The High Court was right in holding that the
District Authority under Rule 151 of the Petroleum Rules,
1976 can cancel the No Objection Certificate only when the
licensee ceases to have any right to use the site for stor-
ing petrol. However, certain subsequent observations made by
the High Court in the judgment might lead to an inference
that so long as the licensee continues to have leasehold
rights on the site, the ’No Objection Certificate’ cannot be
cancelled at all. That is not the correct position in law.
[738B-C]
On a reading of sub-rule (1) of the Rule 151 it is clear
that a ’No Objection Certificate’ granted under Rule 144 can
be cancelled wherever the licensee ceases to have any right
to use the site for storing petrol and that right could be
lost by a licensee either by his tenancy or right to the use
of the site coming to an end or for any other reason where-
by, in law, the right to use the site for storing petrol
ceases. [738C-D]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Special Leave Petition
(Civil) No. 5775 of 1990.
From the Judgment and Order dated 30.11.1989 of the
Allahabad High Court in C. Misc. W.P. No. 2431 of 1989.
737
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Dr. L.M. Singhvi and Pramod Dayal for the Petitioners.
T.S. Krishnamoorthy lyer and D.M. Nargolkar for the
Respondents.
The following Order of the Court was delivered
On the facts and circumstances of the case including the
facts set out in the counter affidavit filed by R.B. Sahi we
are not inclined to interfere with the impugned order passed
by the Allahabad High Court.
Very briefly stated respondent No. 1 is the owner of a
Petrol Pump which is set up on a site in Dehradun, of which
respondent No. 1 is the lessee. The ’No Objection Certifi-
cate’ granted for conducting the said Petrol Pump.was can-
celled by respondent No. 5, the District Magistiate of
Dehradun, and that order was upheld by the Commissioner. The
Division Bench of the Allahabad High Court by the impugned
judgment set aside the order of the Commissioner. The spe-
cial leave petition is directed against the said order as we
have already observed we see no reason to interfere with the
actual order passed by the Division Bench but we would like
to make a clarification regarding the interpretation of Rule
151 of the Rules framed in 1976 under the Petroleum Act.
Rule 144 of the said Rules deals with the issue of a ’No
Objection Certificate’ for a new license for running a
Petrol Pump. Rule 151 deals with the cancellation of the ’No
Objection Certificate’ and the said rule reads as follows:
(1) "A no objection certificate granted under Rule 144
shall be liable to be cancelled by the District Authority or
the State Government, if the District Authority or the State
Government is satisfied, that the licensee has ceased to
have any right to use the site for storing petrol; Provided
that before cancelling a no objection certificate, the
licensee shall be given a reasonable opportunity of being
heard.
(2) A District Authority or a State Government cancelling
a no objection certificate shall record in writing the
reasons for such cancellation and shall immediately furnish
to the licen-
738
see and to the licensing authority concerned a copy
of the order cancelling the no objection certificate."
The High Court has rightly observed that the District
Authority under Rule 151 can cancel the No Objection Certif-
icate only when the licensee ceases to have any fight to use
the site for storing petrol. However, there are certain
subsequent observations made by the High Court in the im-
pugned judgment which might lead to an inference that so
long as the licensee continues to have lease-hold rights on
the site, the ’No Objection Certificate’ cannot be cancelled
at all. That does not appear to be the correct position in
law. On a reading of sub-rule (1) of Rule 151 it is clear
that a ’No Objection Certificate’ granted under Rule 144 can
be cancelled wherever the licensee ceases to have any right
to use the site for storing petrol and that right could be
lost by a licensee either by his tenancy or right to the use
of the site coming to an end or for any other reason where-
by, in law, the right to use the site for storing petrol
ceases.
In view of the clarification which we have made, Dr.
Singhvi, learned counsel for the petitioner states that he
does not wish to press the petition. The Special Leave
petition is, therefore, dismissed.
N.P.V. Petition
dismissed.
739
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