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2023 Supreme(All) 1963

IN THE HIGH COURT OF ALLAHABAD
Mahesh Chandra Tripathi, Prashant Kumar, JJ.
Ashish Kumar Rai - Petitioner
Versus
Union of India and others - Respondents
Civil Misc. Writ Petition No. 20359 of 2023
Decided On : 08-08-2023

Advocates:
Advocate Appeared:
For the Petitioner: Dharmendra Shukla and Subhash Chandra Maurya
For the Respondent: A.S.G.I., C.S.C., Gaurav Kumar Chand and Nishant Mehrotra

IMPORTANT POINT
The court established that the mere pendency of a criminal case cannot justify the denial of a No Objection Certificate under the Petroleum Rules.

Headnote:

Petroleum - No Objection Certificate - Petroleum Rules, 2002 (Rule 144), Gas Cylinder Rules, 2004 - The court emphasized that mere pendency of a criminal case cannot be grounds for denying a No Objection Certificate, which must be based on suitability of the site, not the applicant's criminal status.

Fact of the Case:

The petitioner applied for a retail outlet dealership and was issued a Letter of Intent. The District Magistrate refused to grant a No Objection Certificate due to a pending criminal case against the petitioner, leading to the writ petition.

Finding of the Court:

The court found that the District Magistrate misinterpreted the rules by considering the applicant's criminal case status instead of the suitability of the site for the retail outlet.

Issues: Whether the District Magistrate could deny a No Objection Certificate based solely on the pendency of a criminal case against the applicant.

Ratio Decidendi: The court held that the denial of a No Objection Certificate based on the mere pendency of a criminal case is not supported by the Petroleum Rules, which require consideration of site suitability.

Result: The impugned order was set aside and the matter was remitted to the District Magistrate for fresh consideration.

JUDGMENT :

Heard Sri Anil Tiwari, learned Senior Advocate assisted by Sri Dharmendra Shukla, learned counsel for the petitioner; Sri Gaurav Kumar Chand, learned counsel for the respondent No. 1/Union of India; Sri S.C.Upadhyay, learned Standing Counsel for the State-respondent No. 3 and 4 and Sri Nishant Mehrotra, learned counsel for the respondent No. 2/HPCL.

2. The present writ petition has been preferred assailing the order impugned dated 1.6.2023 passed by District Magistrate, Jhansi (Annexure 1 to the writ petition) and the impugned report dated 17.5.2023 submitted by the Senior Superintendent of Police, Jhansi to the District Magistrate, Jhansi (Annexure 2 to the writ petition). Further prayer is made to issue direction commanding the District Magistrate, Jhansi to issue N.O.C. as required under Rules 144 of the Petroleum Rule 2002 read with Rule 48 of Gas Cylinder Rules, 2004 without any further delay.

3. The record in question reflects that Hindustan Petroleum Corporation Limited (in short, HPCL)/respondent No. 2 published an advertisement dated 25.11.2018 inviting applications for MS/HSD Retail Outlet Dealership at Location: Village Nohara on Badora Chauraha Basai Road, district Jhansi. The petitioner applied for and was selected for the retail outlet and consequently, HPCL has issued a Letter of Intent (LOI) in favour of the petitioner on 30.9.2021, which is appended as Annexure 3 to the writ petition. Since the retail outlet requires storage of petroleum/C.N.G., the license is required under the provisions of Petroleum Act, 1934 read with Petroleum Rules, 2002 and Gas Cylinder Rules 2004. Consequently, the respondent No. 2 had requested the District Magistrate, Jhansi (respondent No. 3) to provide 'No Objection Certificate' with regard to the land in question as required under Rule 144 of Petroleum Rules, 2002. Thereafter, the District Magistrate sought reports from the Senior Superintendent of Police, Jhansi and 7 other departments on 29.11.2021. Consequently, they submitted their no objection, which have been brought on record as Annexures 6 to 13 respectively to the writ petition.

4. It further appears from the record that in response to the letter dated 23.11.2021, while submitting report to the Senior Superintendent of Police Jhansi recommending for grant of NOC on 25.6.2022, the Station House Officer, Badagaon mentioned that a Case Crime No. 113 of 2017 under Section 379 IPC and 4/21 of Mines and Mineral Act, is registered against the petitioner, wherein, the charge-sheet has also been filed by the police on 4.10.2017. The said charge-sheet was challenged before this Court in Application under Section 482 Cr.P.C. No. 27307 of 2018 (Ashish Kumar Rai v. State of U.P. and another), wherein, an interim protection was granted by this Court vide order dated 20.8.2018, which was extended from time to time and the same is continuing till date. On the basis of recommendation submitted by Station House Officer, the Senior Superintendent of Police, Jhansi submitted his report dated 11.10.2022 before the District Magistrate Jhansi for necessary orders on which the District Magistrate vide letter dated 25.11.2022 sought a categorical report with regard to the 'No Objection Certificate' during the pendency of criminal case against the petitioner. Thereafter, the petitioner has submitted a representation dated 27.1.2023 before the Senior Superintendent of Police, Jhansi for clearance of no objection certificate. When no decision was taken, the petitioner approached this Court by means of Writ C No. 5378 of 2023, which was disposed of by this Court vide order dated 23.2.2023 directing the Senior Superintendent of Police, Jhansi to take a decision in the matter and submit his report to the District Magistrate, Jhansi expeditiously and preferably within a period of two weeks. Again on 17.5.2023 the District Magistrate sent a letter to the Senior Superintendent of Police seeking categorical report on specific three points relating t

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