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2026 Supreme(Online)(Ker) 23430

IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.A.ABDUL HAKHIM, J
SMT.ELSY A.J ALIAS ELSY AVIRACHAN – Appellant
Versus
P.J MATHEW – Respondent
WP(C) NO. 18807 OF 2024



Advocates:
For the Appellants/Petitioners: SRI.S.SUJIN, SMT.NITA.N.S., SMT.KEERTHI M., SRI.K.J.CHACKOCHAN
For the Respondents: SHRI.CIMIL CHERIAN KOTTALIL, SHRI.M.GOPIKRISHNAN NAMBIAR, SHRI.T.V.VINU, CGC, SHRI.K.JOHN MATHAI, SRI.JOSON MANAVALAN, SRI.KURYAN THOMAS, SRI.PAULOSE C. ABRAHAM, SRI.RAJA KANNAN

Licenses under the Petroleum Rules are automatically canceled upon lease expiration, with no need for a formal order.

Headnote:In this judgment, the Court considered the implications of suspension of a petroleum storage license under Rule 152(1) of the Petroleum Rules, 2002, upon expiry of the lease. The Court confirmed the precedent set in Choorapilan Jameela v. Padavanna Shamseer, emphasizing that termination of lease automatically cancels the license without formal order. The petitioner requested three months to vacate the premises, which was deemed reasonable by the Court. The Court held the interim order staying Ext.P8 in effect for three months, recording the petitioner's submission to surrender by the end of that period.

Table of Content
1. license cancellation upon lease expiration without formal order. (Para 1 , 2)
2. petitioner's argument for time to vacate. (Para 3 , 4 , 5)
3. court's decision to maintain interim order for three months. (Para 6 , 7)

JUDGMENT

1. Petitioner is a dealer of the Respondent No.2/Oil Marketing Company running a Petroleum Retail Outlet in premises obtained under lease from the Respondent No.1.

2. Petitioner has filed this Writ Petition challenging Ext.P8 Order issued by the Respondent No.3 suspending the explosive license, on the ground that the lease with respect to the premises has expired. The issue whether a license granted under the Petroleum Rules , 2002, for storing petroleum stands automatically cancelled under Rule 152(1) when licensee ceases to have any right to the site for storing petroleum upon expiry of the lease deed by the Licensing Authority is considered in the decision of this Court inChoorapilan Jameela v. Padavanna Shamseer [ 2026 (1) KHC 342 ], and this Court held that when licensee ceases to have any right to the site for storing petroleum upon expiry of the lease deed, the license stands .

cancelled automatically without any formal order for the same In view of the same, the challenge against Ext.P8 order is not sustainable.

3. The learned Counsel for the Petitioner submitted that the Petitioner is ready to vacate the premises within a reasonable period. Counsel pointed out that the Petitioner has been conducting the Petroleum Retail Outlet in the premises for a considerable length of time and that there is an interim order staying the operation of Ext.P8 Order during the pendency of the Writ Petition, and prayed for three months' time to vacate the premises and to continue the interim order during the said period.

4. The learned Counsel for the Respondent No.1 submitted that the Respondent No.1 had filed a suit for eviction and obtained a decree, and E.P. for executing the decree is pending.

5. On the other hand, the learned Counsel for the Petitioner submitted that the Petitioner has filed an appeal against the said judgment and obtained a stay of operation of the Trial Court Decree.

6. Since the Petitioner has offered to vacate the premises within three months, I am not going into the aforesaid contentions. The period sought for by the Petitioner is reasonable considering the facts and circumstances of the case.

7. Accordingly, this Writ Petition is disposed of, maintaining the interim order staying Ext.P8 Order for a period of three months and recording the submission of the Petitioner that the premises will be surrendered to the Respondent No.1 within a period of three months.

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