Back
IN THE HIGH COURT OF PUNJAB AND HARYANA
Jaswant Singh, Arun Monga, JJ.
Bharat Petroleum Corporation Ltd. - Appellant
Versus
National Highways Authority Of India And Another - Respondent
LPA No. 1725 of 2018 (O&M)
Decided On : 27-01-2020
National Highways Act - Penalty - Guidelines/Norms for access permission to Fuel Stations - [SUBJECT] - [National Highways Act, 2002, Guidelines/Norms for access permission to Fuel Stations] - The court discussed the imposition of a penalty on a preexisting petrol pump commissioned before the enactment of the National Highways Act, 2002, and the guidelines for access permission to fuel stations. The court highlighted the retrospective effect of the guidelines, the requirement for prior approval from the Ministry, and the inapplicability of the penalty to retail outlets commissioned prior to the issuance of the guidelines.
Fact of the Case:
The appellant, Bharat Petroleum Corporation Limited, was penalized for not seeking prior approval under the National Highways Act, 2002, for a preexisting petrol pump commissioned in 1999. The appellant had obtained the requisite 'No Objection Certificate' from the District Magistrate, Ludhiana, and subsequently sought approval for expansion, which was declined, and a penalty of Rs. 25,00,000/- was imposed.
Finding of the Court:
The court found that the penalty imposed on the appellant was not justified as the retail outlet was commissioned prior to the promulgation of the National Highways Act, and the guidelines for access permission to fuel stations did not apply retrospectively to such preexisting outlets. The court set aside the judgment of the Single Judge and allowed the writ petition filed by the appellant, quashing the impugned order imposing the penalty.
Issues: The issues revolved around the imposition of a penalty on a preexisting petrol pump for not seeking prior approval under the National Highways Act, the applicability of the guidelines for access permission to fuel stations, and the ownership status of the land where the retail outlet was located.
Ratio Decidendi: The court held that the penalty could not be imposed retrospectively on a retail outlet commissioned prior to the issuance of the guidelines for access permission to fuel stations. The court also emphasized that the ownership status of the land was insignificant in the context of the guidelines, and the reasoning for imposing the penalty did not stand judicial scrutiny.
Final Decision: The court allowed the appeal, set aside the judgment of the Single Judge, and quashed the impugned order imposing the penalty. The appellant was granted liberty to seek expansion of its retail outlet commissioned in 1999 in accordance with applicable norms.
JUDGMENT
Arun Monga, J. - Short controversy requiring adjudication herein is whether a preexisting petrol pump commissioned in the year 1999, way prior to the enactment of National Highways Act, 2002 (for short, the 'Act') can retrospectively be inflicted with a penalty of Rs. 25,00,000/- for not seeking prior approval under the Act, ibid, from the Ministry concerned?
2. Appellant-Bharat Petroleum Corporation Limited (for brevity, BPCL) is aggrieved by the judgment rendered by learned Single Judge dated 28.08.2018 whereby the aforesaid penalty imposed vide impugned order dated 19.04.2016 has been upheld. Learned Single Judge relied on guidelines dated 24.07.2013 issued by the Ministry concerned and also observed that BPCL being merely a lease-holder of the land in question, is not the owner of the petrol pump and, therefore, writ petition filed by petitioner/appellant herein deserved to be dismissed. For ready reference, relevant extract of learned Single Judge order is reproduced herein below:-
"The petitioner not being the owner of the land and only a lease holder had been running the retail outlet without taking NOC from the Ministry wherein it was mandated for all the existing fuel station to regularize the fuel station which has not obtained prior permission from the Ministry subject to deposit of penalty of Rs.25 lakh. Further, vide order dated 30.11.2017, liberty was given to the petitioner to the effect that in case the petitioner deposit the penalty of Rs.25 lakh within four weeks, then respondents shall process the application of the petitioner for the purpose of expansion of the site for access to the petrol pump, however, the petitioner has failed to do so. Since the petitioner is not the owner of the land and in view of the guidelines issued by the Ministry, the instant petition is dismissed."
3. Succinct factual matrix, as adumbrated by learned Single Judge is that the appellant BPCL had set up the retail outlet after obtaining the requisite "No Objection Certificate" dated 07.09.1998 from the District Magistrate, Ludhiana in terms of Rule 144 of Petroleum Rules. The, then prerequisites which were sine qua non for according the NoC were duly complied with by the BPCL. Sometime on or around 06.03.2014, BPCL moved an application before the District Magistrate for granting NoC for expansion of petrol pump in respect of extra land contiguous to existing retail outlet site. The Project Director and Manager Technical, National Highway Authority of India(respondent herein) after finding all the requisite conditions to be in order, recommended the expansion proposal of BPCL to the competent authority for necessary sanction. However, the said proposal was declined and instead the appellant was asked to deposit a penalty of R.25,00,000/- in terms of guidelines dated 24.07.2013 ibid. The said penalty was imposed ostensibly on the ground that petrol pump had been commissioned without approval of the Ministry.
4. It would be apposite to reproduce the relevant extract of said guidelines, before proceeding further:-
"Sub: Guidelines/Norms for access permission to Fuel Stations, Private Properties, Rest Area Complexes and such other facilities along National Highways.
"Sir, Ministry had issued separate guidelines on access permission to Fuel Stations, Service Stations; Rest Areas etc. vide Circular No. RW/NH-3 3023/19/99-DO-III dated 25.09.2003/17.10.2003, & access permission to Private Properties etc. along National Highways vide Circular No. RW/NH-3 3 02 3/19/99-DO-III dated 31.08.2000. With the improvement in the National Highway network, a greater need for road safety of the users has been felt along with stricter enforcement of the guidelines. It has also been decided that unified norms for access to Fuel Stations, Service Stations, Private Properties, Rest areas and other such facilities along the National Highways may be evolved.
2. Accordingly, the existing Norms and guidelines have now been modified and the unified Guide
AI
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
