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2010 Supreme(All) 4086

2011 (84) ALR 588
HIGH COURT OF JUDICATURE AT ALLAHABAD
V.K. Shukla, J.
Bharat petroleum Corporation Ltd. & another – Appellant
Versus
Commissioner, Agra Division, Agra and others – Respondent
CIVIL MISC. WRIT PETITION NO. 67010 of 2010
Decided on : 24.11.2010

The expiration of the lease period and the refusal to renew the lease can impact the right to the site and justify the cancellation of the 'no objection certificate' under Rule 150 of the Petroleum Rules, 2002.

Headnote:

Bharat Petroleum Corporation Ltd. - Validity of Order - Companies Act, 1913 - Petroleum Rules, 2002 - Rule 144, Rule 150 - The court discussed the cancellation of the 'no objection certificate' under Rule 150 of the Petroleum Rules, 2002 and referred to the provisions of Rule 144 and Rule 150. The court also highlighted the interpretation of the right to use the site for storing petroleum and its impact on the cancellation of the no objection certificate. The judgments of Yogesh Kumar and others vs. Bharat Petroleum Corporation Ltd. and C. Albert Morris vs. K. Chandrashekharan and others were referenced to support the court's decision.

Fact of the Case:

The petitioner, Bharat Petroleum Corporation Ltd., challenged the cancellation of the 'no objection certificate' by the Additional District Magistrate, Agra, and its affirmance in appeal by the Commissioner, Agra Division, Agra. The case involved the lease of land for setting up a retail outlet for petroleum products, disputes with the lessee, and pending civil suits.

Finding of the Court:

The court found that the lease period had expired, the respondents refused to renew the lease, and the petitioner had no right to the site. The court concluded that the cancellation of the no objection certificate was rightful and that reasonable opportunity had been given to the petitioner.

Issues: Validity of the cancellation of the 'no objection certificate', renewal of lease, and sufficiency of the opportunity given to the petitioner.

Ratio Decidendi: The court relied on the expiration of the lease period, the refusal to renew the lease, and the petitioner's lack of right to the site to support the cancellation of the no objection certificate. The court also emphasized that reasonable opportunity had been given to the petitioner.

Final Decision: The court dismissed the writ petition, finding it lacking in substance.

JUDGMENT :

V.K. Shukla, J. –

Present writ petition has been filed by the petitioner, questioning the validity of order dated 28.04.2007 passed by Additional District Magistrate (Finance and Revenue) Agra cancelling the 'no objection certificate' accorded in favour of petitioners company and its affirmance in appeal by the Commissioner, Agra Division, Agra, annexures - 6 and 16, respectively.

2. Brief background of the case is that the Bharat petroleum Corporation Ltd. Is a Government company incorporated under Companies Act, 1913, under the administrative control of the Ministry of Petroleum & Natural Gases of Union of India and engaged in business of refining, distribution and sale of essential petroleum products, such as Motor Spirit (MS), High Speed Diesel (HSD) either directly or through its dealers from the retail petroleum outlets set up by the petitioner on the land owned by them or taken on lease on monthly rental. By a lease dated 18.09.1969 made between Ram Gopal Mathur, Jai Gopal Mathur and Shri Kanwar Gopal Mathur sons of Dr. har Gopal Mathur therein described as a "lessor" and Burmah Shell Oil Storage & Distribution Company of India Ltd., therein described as a "leassee" and herein called as "Burmah Shell", a piece of parcel of Nazul land ad-measuring13386 sq. feet or 1487 sq. yards or 1243.41 sq. meter being premises No.46, Mahatma Gandhi Road, Agra, herein after referred to as the "said lease land" was leased out in favour of Burmah Shell (Predecessor in interest of the present petitioner, M/S Bharat Petrolum Corporation Limited for a period of 20 years commencing from 1st January, 1967 on monthly rental of Rs.400/- with renewal for further period of 20 years to commence from the date of expiry of lease period upon same terms and conditions. Said Burmah Shell constructed a sales room, installed underground storage tanks, dispensing pump and other assets required for sale of petroleum products to the general; public on the said land.

Thereafter, Burmah Shell applied for a No Objection Certificate of the Collector and obtained such certificate for setting up a Retail Outlet at 46, Mahatma Gandhi Road, Agra. The Burmah Shell also made an application to the Chief Controller of Explosives and obtained a licence for storage of the petroleum products of the aforesaid retail outlet from the said place under Petroleum rules. After the said Retail Outlet of Burmah Shell became ready for sale of Burmah Shell's product therefrom for selling said products license dated 14th January, 1971 (hereinafter called first dealership license) was made between the said Burmah Shell and a partnership firm namely M/s Amar Autos formed by Shri Sardar Gur Baksh Singh and Shri Amar Dev Singh, the said partnership firm was appointed as a licensee of the said Burmah Shell to enter upon the said retail outlet of the said Burmah Shell and to sell the petroleum products of Burmah Shell. On 24th January, 1976 by an Act of Parliament namely Burmah Shell (Acquisition to its undertakings in India) Act, 1976, the right, tittle and interest of said Burmah Shell in the said leased land and the assets installed or erected on the said leased land was transferred firstly in favour of President of India and thereafter by a notification issued under the said Act of 1976 in favour of the present plaintiff.

3. Thus, with effect from 24th January, 1976, BPCL became a lessee of the said leased land and owner of the structure and other assets installed or erected on the said leased land. Under the provision of the said Act of 1976 read with the notification issued under the said Act of 1976, the petitioners became the licensor (in place of Burmah-Shell) and the said partnership firm (being the licensee appointed by the aforesaid license dated 14th January, 1971) became a licensee under the petitioners and continued to sell petitioner's petroleum products on the terms and conditions mentioned in the license by entering upon the said leased land and using the asse











































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