The relevant consideration for granting a no objection certificate is the suitability of the site, not the financial capability or personal attributes of the applicant.

This is an application for quashing Annexure-12, an order dated 27th March, 1991, passed by the District Magistrate, Araria, refusing to grant no objection certificate under Rule 144 of the Petroleum Rules, 1976.

2. The petitioner has been selected as a Dealer for LDO and Kerosene oil at Jokihat under Scheduled Caste quota. This selection has been made on the recommendation of the Selection Board pursuant to an advertisement contained in Annexure-1. The petitioner had produced before the Selection Board and the authorities the Bank certificate showing their preparedness to advance loan of Rs. 1,00,000/- (one lakh). No objection certificate, under Rule 144 of the aforesaid Rules, on an application made in Form VIII to the licensing authority, is a must. The Collector is the local authority to grant no-objection certificate for the purpose of obtaining licence to carryon the venture. The Collector in his impugned order has stated that since Sri Baitha is a landless Harijan with no source of income, his being exploited and misutilised is not ruled out.

3. Mr. Navniti Pd. Singh, learned counsel for the petitioner, submits that the Collector has gone haywire in exercise of his jurisdiction under Rule 144 of the Rules. According to the learned counsel, the financial capability and/or lifting the veil of the petitioner is of no concern to the Collector. The only relevant consideration for the Collector for the exercise of his jurisdiction is with respect to the site proposed for the storage of the inflammable products.

4. Mrs. Sheema Ali Khan, learned counsel for the State has filed a counter-affidavit and has only tried to support the assertion of the District Magistrate set out in his impugned order.

5. Having heard learned counsel for the parties, we find whereas the discretion vested in the Collector is with respect to the suitability of the site he has exercised jurisdiction with respect to the suitability of a person, the latter consideration is wholly irrelevant. The District Magistrate has ignored the relevant consideration and rendered his judgment on the basis of irrelevant consideration and therefore, the order is wholly vitiated in law and fit to be quashed.

6. Accordingly, we quash Annexure-12 and direct the District Magistrate to reconsider the matter bearing in view the provisions of Rules 144 and 151 of the Petroleum Rules, 1976. The Collector is directed to dispose of the matter within one month from the receipt of this order.