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2026 Supreme(Online)(HP) 2581

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Jyotsna Rewal Dua, J
Lalit Pathak – Appellant
Versus
Deputy Commissioner Mandi – Respondent
CWP No. 6910 of 2024



Advocates:
For the Petitioner:Mr. Sunil Mohan Goel, Senior Advocate with Mr. Abhinav Mohan Goel, Advocate
For the Respondents:Ms. Seema Sharma, Deputy Advocate General for respondents No. 1 to 4; Ms. Salochna Rana, Advocate, for respondents No. 5 & 6; Mr. Narender Guleria, Advocate, for respondent No.7.

A business rival lacks locus standi to challenge the NOC for a competitor's retail outlet, as any adverse effect is damnum sine injuria. Moreover, if the NOC is in conformity with prescribed technical standards, no interference is warranted.

Headnote:(A) Constitution of India - Article 226 - Writ petition by business rival - Maintainability - No locus standi - Held, the petitioner, being a business rival of respondent No.7, cannot maintain the writ petition challenging the NOC issued for setting up a petroleum retail outlet. The Supreme Court in Mithilesh Garg v. Union of India followed, stated that a rival businessman cannot file a writ petition challenging the setting up of a similar unit on grounds of adverse business interest. (Paras 4 and 5)

(B) Petroleum Rules, 2002 - Rule 114 - No Objection Certificate - NOC granted after road up-gradation - Gradient within permissible limits - Distance from residential houses within norms - Held, the gradient of the spot was 4.72% (below 5%) and nearest residential house was at 35 meters (more than 30 meters required), thus the NOC was valid. (Paras 3(ii) and 4)

(C) Writ Petition - Maintainability - Concealment of material facts - The petitioner deliberately hid his own business as a rival outlet, thus not approaching with clean hands. (Para 4)

Facts of the case:
The petitioner, who himself runs a petroleum retail outlet near the respondent No.7's proposed outlet, challenged the NOC issued by the Public Works Department for setting up a new retail outlet. He earlier filed CWP No.2578/2023, which was withdrawn when the NOC was withdrawn and the road was upgraded. After upgrade, the gradient was 4.72% (within limits) and the NOC was reissued. The petitioner raised objections about gradient and distance, but joint inspection showed compliance. He did not disclose his own business in the writ petition.

Findings of Court:
The Court held that the petitioner, being a business rival, had no locus standi. Additionally, the technical objections were not sustainable as the gradient was within permissible limits and the distance was as per norms. Thus, the petition failed on merits.

Issues: (1) Whether a business rival can maintain a writ petition challenging NOC? (2) Whether the NOC was in violation of guidelines regarding gradient and distance?

Ratio Decidendi: A business rival lacks locus standi to challenge a competitor's NOC unless public interest is affected. Also, technical compliance with guidelines is a matter for authorities to verify, and courts should not interfere if norms are met.

Result: Writ petition dismissed.

Jyotsna Rewal Dua, Judge

Petitioner has questioned the No Objection Certificate (NOC) dated 24.06.2024 issued by the respondent- Public Works Department in favour of respondent No.7 for setting up and running a petroleum retail outlet over the land comprised in Khata Nos. 62 & 69, Khatauni Nos. 73 & 66 and Khasra No. 317/1 Major District Road 76 Shimla-Mandi (via Tatapani) at Village and Post Office, Baggi, Tehsil Balh, District Mandi, H.P. In essence, the petitioner seeks to assail the setting up of new retail outlet of respondent No.7 over the land in question.

2. Heard learned counsel for the parties and considered the case file.

3. The case

3(i). No Objection Certificate was granted by respondents No. 3 & 4- State Public Works Department in favour of respondent No.7 on 13.04.2023 for installing a new petroleum outlet over the above described land. Feeling aggrieved by the issuance of NOC, petitioner instituted Civil Writ Petition No.2578/2023 primarily on the grounds that gradient on the spot in question was more than 05% i.e. maximum limit set down in the guidelines issued by Ministry of Road, Transport & Highways & Indian Roads Congress and also breached distance parameters vis-a-vis residential houses in terms of norms fixed by the Central Pollution Control Board/ Indian Roads Congress guidelines. During pendency of the aforesaid writ petition, the respondent- Public Works Department issued a corrigendum on 19.06.2023 withdrawing its previously issued NOC dated 13.04.2023 in favour of respondent No.7. The corrigendum stated that as up-gradation work of the road portion in question i.e. Chail Chowk to Baggi was in progress, there was scope for improvement of road from single lane to intermediate lane which might in turn improve curves as also grades and therefore, keeping in view the scope of up-gradation of the road, NOC issued by the Public Works Department to respondent No.7 though was issued but the final gradient and curve sharpness report/ NOC would be issued only on completion of the up-gradation work of the road. Based upon the aforesaid corrigendum, the petitioner withdrew CWP No.2578/2023 on 09.10.2023.

3(ii). It appears from the record that road was thereafter upgraded. After up-gradation of road, the final gradient of the spot where the retail outlet was to be installed was ascertained as 4.72% i.e. below 5%. Finding the gradient within prescribed parameters, the respondent-Public Works Department issued NOC in favour of respondent No.7 for setting up petroleum retail outlet on 24.06.2024. Feeling aggrieved, petitioner has preferred this writ petition. During hearing of the case, it was apprised that pursuant to the NOC so issued, respondent No.7 has since installed the retail outlet and is running the same.

4. Learned Senior Counsel for the petitioner could not dispute that after up-gradation of road in question, the gradient where the retail outlet was to be set up, was ascertained at 4.72% i.e. well within the permissible norms as per Indian Roads Congress guidelines pressed into service by the petitioner. Regarding the second issue raised by the petitioner i.e. distance between the retail outlet and the residential houses being around 18 meters and therefore, violating the parameters set up in this regard by Central Pollution Control Board, the joint inspection report placed on record as Annexure R7-4 is to the effect that nearest residential house is at a distance of 35 meters from dispensing unit of the retail outlet as against the requirement of 30 meters in the applicable guidelines. Apart from above factual aspects, it needs to be noticed that respondent No.7 in its reply has pointed out petitioner being his business rival; That petitioner is proprietor of Krishma Filling Station, situated at Dharbathu at a distance of 500 meters from the retail outlet in question. Interestingly, the petitioner in his entire writ petition has not even made any whisper about his being in the same business as that

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