IMPORTANT POINT
Unauthorized construction of pipelines for transportation of petroleum products without necessary authorization is contrary to the PNGRB Act and can lead to financial loss to the authorized entity.

JUDGMENT

CM APPL. 7081/2024

1. The Petitioner has approached this Court with the following prayers:

"a) Transfer to itself the Petition dated 07.11.2023 filed by the Petitioner under Section 24 and 25 of PNGRB Act, 2006 before the PNGRB Board/Respondent No. 2 and grant the following reliefs prayed therein:

(i) Direct IOCL to immediately stop the construction of the Unauthorized Pipelines in respect of transportation of petroleum and petroleum product for the route between Ennore Port and Manali Industrial Area, Tamil Nadu which was already covered by EPMPL authorized to the Petitioner by the Hon'ble Board. (ii) Prohibit IOCL from undertaking construction of the Unauthorized Pipelines in respect of transportation of petroleum and petroleum product for the route between Ennore Port and Manali Industrial Area, Tamil Nadu which was already covered by EPMPL authorized to the Petitioner by the Hon'ble Board.

(iii) Impose a penalty and take any other action as the this Hon'ble Court deems fit against IOCL for violating Section 16 of the PNGRB Act, by constructing the pipeline without authorization of the PNGRB Board.

(iv) Direct IOCL to compensate the Petitioner under Section 21(3) of the PNGRB Act for damages caused to the Petitioner by continuous infringement of the Petitioner's rights by IOCL's construction of Unauthorized Pipelines leading to financial and business losses to the Petitioner. OR, in the alternative

b) grant the following protective reliefs to the Petitioner till the PNGRB is duly constituted by the Respondent No. 1 and capable of constituting a bench and adjudicating the Petitioner's Petition dated 07.11.2023 under Section 24 and 25 of the PNGRB Act:

iii) issue appropriate writ or directions to restrain the Respondent No. 2, PNGRB from granting any approval or authorization to Respondent No. 3 in respect of the Unauthorized Pipelines in respect of transportation of petroleum and petroleum product between for points the route between Ennore Port and Manali Industrial Area, Tamil Nadu which was already covered by EM Pipeline authorized to the Petitioner by the PNGRB.

iv) issue appropriate writ or directions to restrain (or direct Respondent No. 2 to restrain) IOCL from undertaking the construction of the Unauthorized Pipelines in respect of transportation of petroleum and petroleum product between for points the route between Ennore Port and Manali Industrial Area, Tamil Nadu which was already covered by EM Pipeline authorized to the Petitioner by the PNGRB.

c) issue appropriate writ or directions to Respondent No. 1 to immediately take steps for expeditious appointment of Member (Legal) on the PNGRB Board.

d) pass any other or further orders as this Hon'ble Court may deem fit and proper in the circumstances of the case in favour of the Petitioner."

2. Pending the writ petition, the Petitioner had filed CM APPLN. 61267/2024 for interim reliefs. Prayer (b) of the said application was for an ex-parte ad interim order restraining Respondent No.3/IOCL from undertaking the laying down of the petroleum products pipeline between the Ennore Port and Manali Industrial Area which according to the Petitioner is covered by the EM Pipeline authorized to the Petitioner by the Petroleum and Natural Gas Regulatory Board ( in short 'PNGRB').

3. Notice was issued on 28.11.2023. This Court did not grant an ex-parte stay on that day to await the replies of Respondent No.2/PNGRB and Respondent No.3/IOCL.

4. Replies have been filed by the Respondent No.2/PNGRB and Respondent No.3/IOCL.

5. The Petitioner has filed CM APPLN. 7081/2024 once again for an order restraining Respondent No.3/IOCL from undertaking further laying down of the pipeline and also for directing Respondent No.2/PNGRB to undertake a detailed investigation of the pipeline laid down by the IOCL and submit a report to this Court.

6. The case of the Petitioner in brief is that the Petitioner has been authorized by the PNGRB to lay, build and operate the Ennore Port-Manali Industrial Area Pet