The legality of establishing a new retail outlet in close proximity to an existing one, the impact on existing businesses, and the interpretation of the provisions of the Petroleum Act, 1934, and the guidelines for petrol pump/retail outlet establishment.

JUDGMENT :

I.M. Quddusi, J. - Both the writ petitions being inter-linked filed by the same Petitioner, they were heard together and are disposed of by this common judgment.

2. In W.P.(C) No. 3928 of 2006, the Petitioner has prayed for quashing of the impugned order vide Annexure-6 and the No Objection Certificate vide Annexure-7 with a direction to opposite party No. 2 to reject the prayer of opposite party No. 5 to set up its petrol pump/retail outlet at the proposed site.

3. The brief facts of the case are that the Hindustan Petroleum Corporation Limited (in short 'HPCL') has allotted its dealership to the Petitioner in the name and style of M/s. Shree Abhiram Service Station at Olipatna under Khantapara Police Station in the district of Balasore. According to the averments made in the writ petition, the Petitioner obtained necessary license and No Objection Certificate (in short 'NOC') from the competent authorities and fulfilled necessary requirements as per the Rule 117 of the Petroleum Rules and the retail outlet started its functioning with effect from 24.1.2005.

4. The opposite party No. 5 is a registered company under the Companies Act and it deals with various products and recently it has started its business in Petroleum products. In order to expand its business, the opposite party No. 5 purchased a land measuring an area of Ac.8.04. in close proximity of less than 100 meters to the North of the existing petrol pump of the instant Petitioner. Since such a vast area is not required to establish a petrol retail outlet, the Petitioner was under the impression that opposite party No. 5 would establish the depot in the said land. In the meantime on 17.2.2005, the opposite party No. 5 applied before the authority including opposite party No. 2 for grant of NOC to establish a petrol pump/retail outlet over the purchased land. By the time, the Petitioner came to know about such development, the Superintendent of Police, Balasore and Superintendent of Fire Station, Balasore and the explosives department had already granted NOC in favour of opposite party No. 5. At the same time, the Additional District Magistrate, Balasore and Tahasildar, Soro, opposite party No. 3 also recommended the opposite party No. 2 for issuance of NOC.

5. It has been further stated that as per Section 4 of the Petroleum Act, 1934, the Central Government in the Ministry of Road Transport and Highways has promulgated a set of guidelines through circulars bearing No. RW/NH-33023/19/99-DO-111 dated 25.9.2003/17.10.2003 to regulate establishment and maintenance of Petrol Pumps/Retail outlets besides National Highway throughout India. Clause 6.2.1 of the said circular prescribes that in respect of divided carriageway (with no gap in median at the location and stretch) of plain and rolling terrain in non-urban (rural) areas the distance between two fuel stations in the same side of the National Highway should be 1000 meters. Similar criteria have also been provided in Clause 4.4.1 of Appendix-1 to the said circular. Clause 4.4.3 says that if for some reasons two fuel stations are to be sited in close proximity, the same would be grouped together to have a common access through a service road of 7.0m width and connected to the highway through acceleration, deceleration lanes. But the permission for the new fuel station would be considered if it is either in proximity to the existing one so that common access can be provided or the new one is located at a distance of more than 1000 meters from the existing fuel station. Clause 4.4.4 stipulates that in the event new fuel station is established within 1000 meters of the existing one, it shall be the responsibility of the new fuel station to construct and maintain common service road, acceleration and deceleration lanes etc.

6. In view of the fact that the site on which opposite party No. 5 is going to establish its petrol pump/retail outlet being only at a distance within 100 mtrs in the same side of N.H.5 at North o