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2023 Supreme(P&H) 3015

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VINOD S. BHARDWAJ, J.
Indian Oil Corporation Ltd. – Petitioner
Versus
State of Punjab & Anr – Respondents
CWP NO. 5527 of 2016 (O&M)
Decided On : 16-01-2023

Advocates Appeared:
Mr. Ashish Kapoor, Advocate; For the Petitioner
Ms. Niharika Sharma, AAG, Punjab.

Headnote:(A) Petroleum Rules, 2002 - Rule 144 - Concerning the issuance of No Objection Certificate (NOC) for setting up a retail outlet - The petitioner sought directions for the District Magistrate to decide the pending application for NOC after the withdrawal of a civil suit that was impeding this process. (Para 10)

(B) Legal Status of NOC - NOC was initially granted but later cancelled due to discrepancies regarding the outlet’s compliance with approved drawings and unauthorized land usage. (Para 3)

Facts of the case:
The petitioner, a government-owned company, entered into a lease agreement for land and sought to establish a retail outlet, which was affected by the cancellation of the NOC and an ongoing civil dispute over the land.

Findings of Court:
The court directed the District Magistrate to decide on the NOC application, now that no pending civil litigation obstructed the process.

Issues: The primary issue was the authority of the District Magistrate to grant the NOC following the withdrawal of the civil suit.

Ratio Decidendi: The Court emphasized that administrative decisions must proceed absent legal impediments and that the District Magistrate must fulfill responsibilities under the Petroleum Rules.

Result: The petition is disposed of with directions for consideration of the pending application.

Table of Content
1. granting of no objection certificate request. (Para 1 , 2)
2. issues surrounding the cancellation of noc. (Para 3 , 4 , 5)
3. pending application and related legal proceedings. (Para 6 , 7 , 8)
4. withdrawal of civil suit influences noc decision. (Para 9)
5. court directs decision on pending noc application. (Para 10)

JUDGMENT

Vinod S. Bhardwaj, J. (Oral)

The instant writ petition has been filed for seeking issuance of directions to the respondents to decide the pending request/application for grant of 'No Objection Certificate' for setting up of a retail outlet under Rule 144 of the PETROLEUM RULES , 2002.

2. The petitioner-Indian Oil Corporation is a Government owned Company and had entered into a lease agreement with one Jasbir Singh Bal for an area measuring 2025 sq. meters as per the jamabandi for the years 1999-2000 situated in village Heir, Tehsil and District Amritsar vide registered lease deed dated 28.05.2003 for a period of 30 years. The details of the above land are mentioned in paragraph No.2 of the present petition. An application for seeking NOC for establishing a retail outlet was submitted with the District Magistrate, Amritsar, under Rule 144 of the PETROLEUM RULES , 2002 and was initially granted by respondent No.2 on 31.03.2003 (Annexure P-2). The retail outlet was duly made functional. Thereafter, the regular dealer was appointed by the Company. A writ petition, however, was filed by the lesser before the Hon'ble High Court of Delhi which was dismissed on 08.02.2008. The SLP was also filed against the said order before the Hon'ble Supreme Court and the same was also dismissed on 31.07.2008 vide Annexure P-3.

3. Since the M & H Contractor did not vacate the premises, an Estate Officer was appointed in view of the Notification dated 27.01.2008 issued by the Central Government in exercise of the powers conferred under Section 3 of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (hereinafter referred to as 'the Act of 1971'). A notice thereafter was issued by the Estate Officer to the person in unauthorized occupation including the lessor of the land under Section 4 (2) of the Act of 1971. During the pendency of the above said dispute, the District Magistrate, Amritsar, cancelled the NOC granted for establishment of the retail outlet vide order dated 31.01.2009 by giving following reasons:-

(a) The retail outlet is not as per the approved drawing

(b) In the approved drawing there are two tanks whereas physically there are 4 underground tanks available

(c) The retail outlet land includes Khasra No.23//20 which is of village Bal whereas the NOC is for village Heir.

4. Thereafter, the Estate Officer appointed by the Central Government under the Act of 1971, ordered eviction of the respondent M & H Contractor and lessor vide order dated 09.04.2010 against which an appeal was filed before the Additional District Judge. The petitioner-Corporation also preferred a separate writ petition before the High Court for issuance of directions to the Police and Civil Authorities to implement the order dated 09.04.2010 passed by the Estate Officer and to provide necessary police assistance as per Rule 7 of the Public Premises (Eviction of Unauthorised Occupants) Rules of 1971. The above said writ petition was disposed of by this Court vide order dated 29.04.2013, directing the Appellate Authority to decide the appeal within a period of two months from the date of receipt of certified copy of the order. Police Commissioner was also directed to provide assistance in case the eviction order sustained. The appeal was subsequently dismissed by the Additional District Judge, Amritsar on 05.07.2013. The above said facts were also apprised by the officer of the petitioner-Corporation to the District Magistrate with a request to restore the NOC earlier withdrawn.

5. The petitioner-Corporation was thereafter served with a communication dated 29.05.2012 calling upon the petitioner-Corporation to apply for a

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