No Need for NOC from Land Owners in Case of Lease Deed: High Court Upholds Candidature for LPG Distributorship

07 May 2024 8:19 AM

By: Admin


In a significant ruling, the High Court of Punjab and Haryana, led by Hon'ble Mr. Justice Jagmohan Bansal, upheld the selection of respondent No.4 for LPG distributorship at Balachaur, District SBS Nagar, dismissing the petitions filed against the Union of India and others in the cases of CWP-9511-2018 (O&M) and CWP-24497-2019.

Justice Bansal, in his detailed judgment, clarified the nuances of land lease requirements for LPG distributorship applications. The judge observed, "In case of lease deed, there is no concept of seeking NOC from owners of land," thus addressing a key contention of the petitioner, Mr. Ashish Duggal. This pivotal clarification steered the course of the judgment, emphasizing the distinction between the ownership and lease deed scenarios in such applications.

The case revolved around the procedural aspects of the selection process undertaken by Indian Oil Corporation Ltd. (Corporation) for the allotment of LPG distributorships. The petitioner challenged the candidature of respondent No.4, asserting procedural deficiencies in the selection process. The primary focus was on the validity of the lease deed and the requirement of notarized affidavits from co-owners of the leased land.

Justice Bansal meticulously examined the clauses of the brochure issued by the Corporation, highlighting, "The respondent No.4 was sole lessee of the offered lease land and she was not required to get 'NOC' from anyone." This observation was central to the dismissal of the petitions, as it affirmed the compliance of respondent No.4 with the brochure requirements set forth in August 2013.

The Court also addressed the issue of the land being mortgaged prior to the lease, noting that there was no restriction in the brochure against executing a lease deed for mortgaged land. In this context, the Court found no reason to invalidate the lease deed or the selection process.

Date of Decision : 20.01.2024

ASHISH DUGGAL VS UNION OF INDIA AND ORS.     

 

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