Yogesh Kumar and Ors. v. Bharat Petroleum Corpn. Ltd. and Ors.
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
interefere 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 Certificate' granted for conducting
the said Petrol Pump.was cancelled by respondent No. 5, the District
Magistrate of Dehradun, and that order was upheld by the Commis
sioner. The Division Bench of the Allahabad High Court by the
impugned judgment set aside the order of the Commissioner. The
special 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 Govern
ment 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- H
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 Certificate only when the
licensee ceases to have any right to use the site for storing petrol.
However, there are certain subsequent observations made by the High
Court in the impugned judgment which might lead to an inference that
so long as the licensee continues to have lease-hold right& 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"'1'Ule ( 1) of
Rule 151 it is clear that a 'No Objection Certificate' granted under
Rule 144 can be cancelled wherever the licensee ceases to h11.ve 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 whereby, 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.