The court ruled that competition in business does not justify restraining operations of a legal entity unless fundamental rights are infringed, affirming the legality of setting up fuel stations according to urban area guidelines.

JUDGMENT :

Amrita Sinha, J.

1. The aforesaid two writ petitions have been filed praying for similar relief. The writ petitions are, accordingly, taken up for consideration analogously and disposed of by a common judgment.

2. Sarkar Fuel Station, the petitioner no. 1 in WPA 11363 of 2025, claims to be a partnership firm which is running a petrol pump situated beside NHAI-12 (old NH-34) upon obtaining approval from National Highways Authority of India (NHAI) from the year 2021. Animesh Baidya, the petitioner in WPA 7776 of 2024, has averred that he is associated with a petrol pump beside NH-12 (old NH-34).

3. Both the petitioners are aggrieved by the decision taken by NHAI in granting permission to Indian Oil Corporation Limited (IOCL) for setting up of a large format retail outlet on the self-same highway and they pray for a direction upon NHAI to recall the said sanction memo.

4. Submission of the petitioners is that the said permission is contrary to the guidelines/norms laid down by the Government of India, Ministry of Road Transport and Highways dated 26^th June, 2020 relating to grant of permissions for construction of access to fuel stations, wayside amenities connecting roads, other properties, rest area complexes and such other facilities. The said guidelines are meant to be followed without any deviations.

5. It has been submitted that the minimum distance required to be maintained in between two fuel stations have not been adhered. According to the guidelines in respect of rural stretches of national highways an undivided carriageway has to be 300 metres and for divided carriageway it is 1000 metres. The restriction shall not apply in cases where access/egress for all fuel stations is provided through common service road of 7-metre width and not directly to national highway.

6. The petitioners submits that the distance between the petrol pump of the petitioner and the petrol pump which will be set up at the proposed site does not maintain the minimum distance as per the guidelines. The aforesaid discrepancy was brought to the knowledge of NHAI and the said authority, for resolving the dispute, has requested IOCL to stop the construction of approaches within NHAI row.

7. Prayer has been made to restrain NHAI from giving final approval to the sanction issued to IOCL for setting up of the petrol pump.

8. IOCL has filed a report annexing the guidelines for selection of dealers for regular and rural retail outlet. The guidelines disclose the manner for identification of locations for setting up of retail outlets. It mentions that regular retail outlets shall be located on highways (National Highways/State Highways etc.) and urban/semi urban areas (within municipal limits of a town). Rural retail outlets are located in rural areas but not on highways (National Highways/State Highways etc.) and outside municipal limits of a town.

9. IOCL contends that, there is no requirement of maintaining the minimum distance in between two retail outlets if the outlet is set up in urban/semi urban areas. In the instant case, place has been identified for setting up of regular retail outlet in accordance with the guidelines. As the outlet does not fall within the rural area, the minimum distance criteria will not apply.

10. Here, the proposed location is under the jurisdic