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2026 Supreme(Online)(Mad) 46939

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.K. ILANTHIRAIYAN, J
Neoko Industries Private Limited – Appellant
Versus
Union of India – Respondent
WPMP Crl. 430 of 2025



Advocates:
For the Appellants/Petitioners: Muthucharan Sundaresh
For the Respondents: P.J.Anitha, V.Gunasekar, R.Ganesh Kumar

Administrative authorities must provide reasoned, non-arbitrary justification for denying NOCs for industrial installations where statutory requirements and public safety parameters have been objectively satisfied, particularly when similar facilities already operate in the immediate vicinity.

Headnote:The petitioner challenged an order rejecting the request for a No-Objection Certificate (NOC) required for the installation of an Auto LPG Dispensing Station. The court examined the statutory requirements under the Static and Mobile Pressure Vessels (Unfired) Rules, 2016, and the arbitrary nature of the rejection by the local authority despite compliance with safety standards and approvals from other relevant departments. The court found that the refusal lacked merit given the proximity of existing similar facilities in the area. The main issues addressed were whether the refusal of the NOC was arbitrary and whether the petitioner had fulfilled all necessary statutory prerequisites. The court held that since the applicant had already secured approvals from the Petroleum & Explosives Safety Organization and firefighting authorities, and because the site's suitability was established by the presence of neighboring petroleum outlets, the rejection was unreasonable. The ratio relies on the principles of administrative fairness and the objective assessment of public safety risks. The Writ Petition is allowed, and the respondent is directed to issue the necessary No-Objection Certificate within two weeks.

Table of Content
1. overview of administrative challenge to rejection of licensing application. (Para 1 , 2 , 3)
2. arguments concerning article 14 and mandatory statutory obligations/remedies. (Para 4 , 5 , 6)
3. court evaluates site safety and compliance with existing industry standards. (Para 7 , 8 , 10)
4. court grants relief and directs issuance of required certification. (Para 11 , 12)

ORDER

This Writ Petition is filed challenging the proceedings of the seventh respondent dated 16.04.2025 rejecting the request made by the petitioner for issuance of No Objection Certificate for installation of an Auto LPG Dispensing Station with 10 KL Storage at Old Survey No.863/2, New Survey No.863/3, Block No.40, Door No.3, New Door No.14 (Subdivision6), Whannels Road, Egmore, Chennai – 600 008.

2.The case of the prosecution is that the petitioner company is engaged in the business of petroleum products viz. automotive and industrial gas, liquified petroleum gas (LPG) services including importing, storing, supplying and marketing LPG, automotive grade LPG, etc. While being so, a property measuring 5,400 sq.ft., consisting of 90 feet width along with 60 feet length, situated at Old Survey No.863/2, New Survey No.863/3, Block No.40, Door No.3, New Door No.14 (Subdivision6), Whannels Road, Egmore, Chennai – 600 008, owned by one F.Muthuwappa, was leased out in favour of the petitioner, for the purpose of starting an Auto LPG Dispensing Station, vide lease agreement dated 24.10.2024.

3.Thereafter, the petitioner approached the third respondent vide letter dated 07.11.2024 seeking for an Approach Road NOC for the Auto Gas LPG Station. Thereafter, the fourth respondent vide letter dated 13.11.2024 informed the petitioner that Whannels Road approaching the above said premises is maintained by the Greater Chennai Corporation and that planning permission should be obtained from GCC. The fourth respondent had also confirmed that there was no proposal for local development planning including buildings, schools, hospitals and ensuring other mitigating measures. Thereafter, the petitioner had also obtained a No Objection Certificate dated 04.12.2024 from the Tamil Nadu Fire & Rescue Services Department/sixth respondent for installation of Auto LPG Dispensing Station with 10 KL Storage in the above mentioned premises. Finally, the petitioner applied for No Objection Certificate from the seventh respondent for installation of Auto LPG Dispensing Station. However, the seventh respondent rejected the request of the petitioner for issuance of No Objection Certificate by order dated 16.04.2025. Challenging the same, the present Writ Petition has been filed.

4.The learned counsel for the petitioner submits that the impugned order is unreasonable and is in violation of Article 14 of the Constitution of India, since all the parties concerned verified the subject place, issued No Objection Certificate and also issued planning permission. Further, the seventh respondent failed to give any personal hearing to the petitioner before rejecting the request made by the petitioner for issuance of No Objection Certificate. There is absolutely no reason mentioned in the order impugned in this Writ Petition. The reasons stated by the seventh respondent are also vague. He further submits that near the said place already there is a petroleum product outlet run by the Indian Oil Corporation. Therefore, there is no impediment for the seventh respondent to issue No Objection Certificate.

5. The seventh respondent has filed a counter. Mr.R.Ganesh Kumar, learned Counsel for Government of Tamil Nadu appearing on behalf of the respondents 5 to 7 submits that the Writ Petition itself is not maintainable and that there is an appeal remedy available for the petitioner against the order passed by the seventh respondent under the Static and Mobile Pressure Vessels (Unfired) Rules, 2016 (hereinafter referred to as SMPV(U) Rules, 2016). He would also submit that in the approval granted by the

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