With NOC Cancellation Unchallenged, Madras HC Directs PESO To Cancel Licence And BPCL To Remove Closed Fuel-Pump Equipment Within Four Months

The first respondent operated a retail fuel outlet at Plot No. 164/6A, Neivasal Thenpathi Village, under an explosives licence issued on the basis of a No Objection Certificate (NOC) granted in 1994.

The District Revenue Officer cancelled the NOC on 29 January 2026 under Rule 150(1) of the Petroleum Rules, 2002.

The petitioner sought a direction to cancel or surrender the explosives licence and remove the fuel-station equipment.

The first respondent confirmed that the outlet was not operating and was willing to remove the equipment.

Rule 152(1)(i) and (ii) of the Petroleum Rules, 2002 provides that a licence stands cancelled if the licensee ceases to have a right to the storage site or if the NOC is cancelled by the District Authority or State Government under Rule 150(1).

Rule 152(1)(iii) separately permits suspension or cancellation by the licensing authority for contravention of the Act, rules or licence conditions; the proviso requires an opportunity of hearing before action under that clause.

The Court distinguished this discretionary action from cancellation that follows by operation of law under clauses (i) and (ii).

The Court held that cancellation of the NOC triggered the licence’s cancellation under Rule 152(1)(ii), rather than requiring a discretionary decision under Rule 152(1)(iii).

In that situation, the relevant inquiry was whether the NOC cancellation had been challenged and overturned; the first respondent had not challenged it and confirmed that the outlet was no longer operating.

The Court therefore directed the licensing authority to issue a cancellation order and required the first respondent to remove the equipment.

No order as to costs was made.