THE HONOURABLE SRI JUSTICE N.V.SHRAVAN KUMAR WRIT PETITION No.12367 of 2025

ORDER

Heard Sri.S.Ravi, learned senior counsel appearing for the petitioner and Ms.NVR.Rajya Lakshmi, learned standing counsel appearing for respondent Nos.1 to 3. With the consent of the parties, the writ petition is being taken up for disposal at the admission stage itself.

2. This writ petition has been filed seeking the following prayer:-

“to declare the action of the Respondent No.2 in suspending the license of the Petitioner bearing No.P/SC/TG/14/4237 vide Order dated 21.03.2025 as arbitrary, illegal, and in violation of Article 14 and Article 19 of the Constitution of India.”

3. Brief facts as stated in this writ petition are that petitioner is a public limited company incorporated on 23.03.2015, registered under the provision of Companies Act, 2013. The respondent No.1 has issued marketing authorization to Reliance Industries Limited to market transportation fuels- petrol and diesel in retail in India. Subsequently, the Reliance Industries Limited, vide dealership agreement dated 14.03.2005, has appointed M/s.Shiva Krishna Filling Station, as its dealer for the retail and supply of certain products and services using reliance equipments. Thereafter, the Reliance Industries Limited has also entered into a registered lease deed dated 14.03.2005 with M/s.Shiva Krishna Filling Station, with respect to land admeasuring 2246.00 Sq.meters or 2686.098 Square yards, in Sy.No.477/13, 477/1, situated at Garmilla Village, Mancherial Mandal and Municipality, Adilabad District, the said premises is used as storage depot or a service station for the purpose of selling or otherwise dealing in or of receiving, storing, treating or handling for distribution of petroleum or any of this productions. The terms of the lease deed dated 14.03.2005 is for a period of 20 years and the Clause 3(viii) of the said lease deed entitles the lessee to an absolute right of renewal of the lease for a further equivalent terms of 20 years at same rent and on same terms and conditions.

4. Further case is that on 24.02.2020, the Reliance Industries Limited filed an application and requested respondent No.1 to transfer its marketing rights to the petitioner and the respondent No.1 vide letter dated 31.03.2020, has approved the same and the petitioner was permitted to exercise the marketing rights i.e., to market Motor Spirit (MS) and High Speed Diesel (HSD) for retail marketing. Thereafter, the Reliance Industries Limited vide Assignment Agreement dated 07.05.2020, assigned its business of owning, operating, conducting petroleum retail marketing and related activities in the States of Andhra Pradesh and Telangana including its rights, entitlements, liabilities, covenants and obligation under the Dealership Agreement in favour of the petitioner. Subsequently, the Reliance Industries Limited, executed a Assignment of lease deed dated 29.08.2020, wherein the right, title, interest and obligations of the Reliance Industries Limited arising out of lease deed dated 14.03.2005 was also assigned to the petitioner. Later, the petitioner on 28.11.2021 made an application and requested respondent No.3 to renew the petitioner’s licence up to 31.12.2031 and respondent No.3 vide letter No.P/SC/TG/14/4237 (P137190) dated 02.12.2021 has renewed the licence and directed the petitioner to strictly follow the procedure as laid down in Rule 148 of the Petroleum Rules, 2002 and submit complete documents for the renewal of the licence to Jt.Chief Controller of Explosives, Hyderabad on or before 31.12.2031.

5. Learned senior counsel appearing for the petitioner would submit that as per the scheme under the Petroleum Rules, 2002 promulgated under the Petroleum Act, 1934, one of the essential requirements for operating a petroleum retail outlet in India is to obtain a storage license from the Chief Controller of Explosives, Petroleum and Explosives Safety Organisation (PESO) and on account of breach of terms of