YOGESH KUMAR AND ORS. versus BHARAT PETROLEUM CORPN. LTD. AND ORS.

Citation: [1990] 3 S.C.R. 736 · Decided: 10-08-1990 · Supreme Court of India · Bench: M.H. KANIA, KULDIP SINGH · Disposal: Dismissed
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Judgment (excerpt)

A 
YOGESH KUMAR AND ORS. 
v. 
BHARAT PETROLEUM CORPN. LTD. AND ORS. 
..... 
AUGUST 10, 1990 
B 
[M.H. KANIA AND KULDIP SINGH, JJ.) 
Petroleum Rules, 1976: Rule. 151-Cancellation of No Objection 
Certificate granted under Rule 144 for running petrol pump-Inter-
pretation of rule-Clarification of. 
~-
c 
The No Objection Certificate granted to Respondent No. 1 Corpo-
ration under Rule 144 of the Petroleum Rules 1976 for running a petrol 
pump set up by it on a lease hold site was cancelled by respondent No. 5, 
the District Magistrate under Rule 151 of the Rules. This order was 
upheld by the Commissioner, but was set aside by the High Court, on 
D appeal. Hence the special leave petition against the High Court's order. 
Dismissing the special leave petition, this Court, 
HELD: The High Court was right in holding that the District 
Authority under Rule 151 of the Petroleum Rules, 1976 can cancel the 
E 
No Objection Certificate only when the licensee ceases to have any right 
to use the site for storing petrol. However, certain subsequent obser-
' 
vations made by the High Court in the judgment might lead to an 
'< 
inference that so long as the licensee continues to have leasehold rights 
on the site, the 'No Objection Certificate' cannot be cancelled at all. 
That is not the correct position in law. [7388-C) 
F 
On a reading of sub-rule (1) of the Rule 151 it is clear that a 'No 
Objection Certificate' granted under Rule 144 can be cancelled where-
~ 
ever the licensee ceases to have any right to use the site for storing petrol 
... 
and that right could be lost by a licensee either by his tenancy or right to 
the use of the site coming to an end or for any other reason whereby, in 
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law, the right to use the site for storing petrol ceases. [738C-D] 
CIVIL APPELLATE JURISDICTION: Special Leave Petition 
(Civil) No. 5775 of 1990. 
From the Judgment and Order dated 30.11.1989 of the Allaha-
l._ 
H 
bad High Court in C. Misc. W.P. No. 2431of 1989. 
736 
I 
YOGESH KUMAR v. BHARAT PETROLEUM 
737 
Dr. L.M. Singhvi and Pramod Dayal for the Petitioners. 
T.S. Krishnamoorthy lye~ and D.M. Nargolkar for the Res-
pondents. 
The following Order of the Court was delivered 
On the facts and circumstances of the case including the facts set 
"'-·~-out in the counter affidavit filed by R.B. Sahi we are not inclined to 
interefere with the impugned order passed by the Allahabad High 
Court. 
Very briefly stated respondent No. 1 is the owner of a Petrol 
Pump which is set up on a site in Dehradun, of which respondent No. 1 
~---is the lessee. The 'No Objection Certificate' granted for conducting 
the said Petrol Pump.was cancelled by respondent No. 5, the District 
Magistrate of Dehradun, and that order was upheld by the Commis-
sioner. The Division Bench of the Allahabad High Court by the 
impugned judgment set aside the order of the Commissioner. The 
special leave petition is directed against the said order as we have 
already observed we see no reason to interfere with the actual order 
passed by the Division Bench but we would like to make a clarification 
'>' regarding the interpretation of Rule 151 of the Rules framed in 1976 
under the Petroleum Act. 
Rule 144 of the said Rules deals with the issue of a 'No Objection 
Certificate' for a new license for running a Petrol Pump. Rule 151 
deals with the cancellation of the 'No Objection Certificate' and the 
said rule reads as follows: 
( 1) "A no objection certificate granted under Rule 144 shall·be 
liable to be cancelled by the District Authority or the State 
Government, if the District Authority or the State Govern-
ment is satisfied, that the licensee has ceased to have any 
right to use the site for storing petrol; Provided that before 
cancelling a no objection certificate, the licensee shall be 
given a reasonable opportunity of being heard. 
(2) A District Authority or a State Government cancelling a 'no 
objection certificate shall record in writing the reasons for 
A 
B 
c 
D 
E 
F 
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such cancellation and shall immediately furnish to the licen-
H 
A 
B 
c 
D 
738 
SUPREME COURT REPORTS 
[1990] 3 S.C.R. 
see and to the licensing authority concerned a copy of the 
order cancelling the no objection certificate."' 
The High Court has rightly observed that the District Authority 
under Rule 151 can cancel the No Objection Certificate only when the 
licensee ceases to have any right to use the site for storing petrol. 
However, there are certain subsequent observations m
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