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2025 Supreme(Jhk) 1318

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
Deepak Roshan, J.
Mrityunjay Kumar Singh @ Mrityunjay Kumar - Petitioner
Versus
The State of Jharkhand through Deputy Commissioner, Latehar and ors. - Respondents
W.P.(C) No.6245 of 2024
Decided On : 06-02-2025


Advocates:
Advocate Appeared:
For the Petitioner: Mr. Indrajit Sinha, Adv., Mr. Shashank Shekhar Pd., Adv.
For the Respondent: Mr. Yogesh Modi, AC to AAG-IA

Pendency of criminal cases cannot justify refusal of No Objection Certificate; presumption of innocence is a fundamental principle.

Headnote:(A) Unlawful Activities (Prevention) Act, 1967 - Petroleum Rules, 2002 - No Objection Certificate (NOC) - Petitioner's application for NOC rejected due to pending criminal cases under UAPA - Court held that mere pendency of criminal cases cannot justify refusal of NOC, reaffirming that an undertrial is presumed innocent. (Paras 3, 9, 10, 12)

(B) Presumption of Innocence - Court emphasized that presumption of innocence is a fundamental human right and that grounds for refusal of NOC must be clearly defined in law. (Paras 10, 12)

Facts of the case:
Petitioner applied for petrol pump dealership, but NOC was denied based on perceived threat due to pending cases.

Findings of Court:
The order was vitiated for lack of reasons and reliance on irrelevant factors. The Deputy Commissioner must decide in accordance with statutory provisions.

Issues: Whether pending criminal cases can be grounds for refusal of NOC under Rule 144 of the Petroleum Rules, 2002?

Ratio Decidendi: The court ruled that without explicit statutory prohibition, pending criminal cases cannot be grounds for NOC refusal, and failure to provide reasoning constituted an error of jurisdiction.

Result: Petition allowed.

Table of Content
1. pendency of criminal cases not grounds for refusing noc. (Para 2 , 3)
2. petitioner pursued dealership after complying with requirements. (Para 4 , 5)
3. judicial observations on statutory interpretation and presumption of innocence. (Para 6)
4. arguments regarding legality of refusal based on pending charges. (Para 7 , 8)
5. legal observations emphasize presumption of innocence. (Para 9 , 10 , 11 , 12)
6. quashing of order due to non-compliance with statutory duties. (Para 13 , 14 , 15 , 16)

JUDGMENT :

Deepak Roshan, J.

Heard learned counsel for the parties.

2. The instant writ application has been preferred by the petitioner for the following relief: -

(i) For issuance of writ in the nature of certiorari, for the quashing the order dated 22.10.2024 (Annexure-8), passed by Respondent no.-2, in Miscellaneous Case No. 100 of 2024, whereby and where under the respondent no.-2 has been pleased to refuse to grant No Objection Certificate for setting up Petrol Pump, on the basis of opinion of Additional Superintendent of Police, NIA, Ranchi, that petitioner is charge sheeted in RC- 38/2020/NIA/DLI and RC-25/2020/NIA/DLI and both cases are pending in the Court of Special Judge, NIA, Ranchi.

(ii) Further after setting aside the order dated 22.10.2024, passed by Respondent no.-2, in Miscellaneous Case No. 100 of 2024, further prays for issuance of a writ in the nature of mandamus, directing upon the respondent no.-2 to grant No Objection Certificate for opening of Retail Outlet Dealership of Indian Oil Corporation Ltd. at Bhusar, District-Latehar, corresponding to Mauza- Bhusar, Thana- Chandwa, Thana No. 283, Khata No.-New-25, old- 13, Plot No. New- 126, old-49, area- 2250 sq. MTR, District- Latehar.

3. A short question arises for consideration in this case, whether the pendency of two criminal cases against the petitioner under the Unlawful Activities (Prevention) Act, 1967 can form the basis for refusing the grant of a No Objection Certificate (“NOC”) by the Deputy Commissioner under Rule 144 of the PETROLEUM RULES , 2002. The answer to the question will decide the validity of the impugned order dated 22.10.2024 passed by the Deputy Commissioner, Latehar in Miscellaneous Case No. 100 of 2024 by which the application of the petitioner for grant of No Objection Certificate for setting up of a petrol pump has been rejected.

3. The brief fact of the case is that the petitioner applied for dealership of a petrol pump on 20.12.2018 to the Indian Oil Corporation Limited. The petitioner deposited the security deposit of Rs.50,000 on 03.09.2022 and was thereafter awarded a Letter of Intent on 31.08.2023. The Indian Oil Corporation Limited by its letter dated 28.09.2023 requested the Deputy Commissioner for issuance of NOC. No response was received from the Respondent No. 2 and the inaction on the part of the Respondent no. 02 led to filing of a writ petition before this Court by the petitioner which was registered as W.P.(C). No. 4121 of 2024.

A bench of this Court by an order dated 19.08.2024 disposed of the same with the direction to the Deputy Commissioner, Latehar to take a decision on the representation made by the petitioner within a period of four weeks from the date of receipt / production of the order.

4. After the above order was passed, the petitioner was served with a notice by the Respondent No. 02 to appear and file its written statement. On 20.09.2024, the petitioner appeared before the respondent no. 02 and filed its written statement in which it was inter alia stated that he has not been convicted in any case and reliance was also placed on the judgement passed by the Allahabad High Court in W.P.(C). No. 20359 of 2023 titled “Ashish Kumar Rai v. Union of India” dated 08.08.2023, in which the High Court of Allahabad has held that mere pendency of criminal case is not sufficient to deny the grant of NOC by a District Magistrate.

Thereafter, the District Magistrate / Deputy Commissioner, Latehar by the impugned order dated

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