High Court Upholds NOC for Fuel Station: No Infirmity in Operation Found by State Agencies

In a significant ruling on the 3rd of November, 2023, the High Court of Punjab and Haryana dismissed a petition challenging the operation of a fuel station established by respondent No.10. Justice Jagmohan Bansal, presiding over the case, stated in his judgement that there had been no infirmity found in the station’s operation by state agencies over the last three years, emphasizing the smooth functioning of the establishment in question.

The petitioner, Amit Kumar, had approached the High Court with allegations that the fuel station in question was set up in violation of specific guidelines, including those pertaining to the minimum distance from intersections and the space required for a service road. The initial contention rested on guideline breaches, with the petitioner referring to a distance of merely 287 meters from an intersection, as opposed to the 300 meters stipulated by Clause 4.5.1, and concerns over the availability of sufficient space for a 7 meters service road as mandated by Clause 5.2.

However, the respondents, including the Union Ministry of Road Transport and Highways and others, contested these claims. They maintained that the petrol station had been allocated legitimately to respondent No.10, who had subsequently set it up in 2020. It was highlighted by learned counsels for the respondents that the Deputy Commissioner issued the No Objection Certificate (NOC) in line with Rule 144 of the Petroleum Rules, 2002, after securing clearances from various departments.

The court observed, “The petrol station is working since 2020 and respondent authorities have issued NOC after scrutinizing applicable instructions as well as guidelines." The judge pointed out that the petitioner, who is a competitor of respondent No.10, had not availed himself of the appellate remedy against the NOC issued by the Deputy Commissioner, which he could have pursued as per Rule 149 of the 2002 Rules.

Justice Bansal remarked on the competitive nature of the case, stating, “The petitioner is a competitor of respondent No.10 and he is raking issues just to avoid competition.” It was further noted that during the last three years, no issues had been reported by the state agencies regarding the operation of the petrol station.

In conclusion, the court found the petition to be without merit, emphasizing that it did not deem it appropriate to revoke the NOC at this stage. As a result, the petition was dismissed, along with any pending applications associated with it. The ruling underscores the court's stance on regulatory compliance and fair competition in the commercial sector.

Date of Decision: 03.11.2023

Amit Kumar Vs Union Ministry of Road Transport and Highways and Others

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