Madhya Pradesh High Court
M/S Mahakaushal Sugar And Power ... vs The State Of Madhya Pradesh on 29 September, 2025
1 WP-37489-2025
IN THE HIGH COURT OF MADHYA PRADESH
AT JABALPUR
WP No. 37489 of 2025
(M/S MAHAKAUSHAL SUGAR AND POWER INDUSTRIES LIMITED Vs THE STATE OF MADHYA PRADESH
AND OTHERS )
Dated : 29-09-2025
Shri Vivek Tankha Senior Advocate through V.C. and Shri Shashank
Shekhar Senior Advocate assisted by Shri Bhoopesh Tiwari, Advocate for the
petitioner.
Shri A.S. Baghel - Government Advocate for the State.
The grievance of the petitioner before this Court is that NOC as required
under Rule 144 of the Petroleum Rules, 2002 has not been granted to the
petitioner for establishing the storage tank of Ethanol to be generated from
Ethanol Plant attached to the Sugar plant which is already being run by the
petitioner since 2005. Recently Oil Marketing Companies of the Government have
initiated NIT process for supply of huge amount of ethanol blended with petrol
and the petitioner has capacity of manufacturing Ethanol and if the petitioner has
to supply Ethanol to the oil marketing companies of the Government, then it will
have to store ethanol so produced by the petitioner company for which licence
from PESO as well as Controller of Explosives is required for which NOC under
Rule 144 of the Petroleum Rules, 2002 is prerequisite to be issued by the District
Magistrate.
2. It is further the case of the petitioner that the petitioner has established the
Sugar plant and Ethanol Plant on various survey numbers which do not include
survey numbers 148 and 166 on which actually the storage tank is to be
established, but the land may be required for proper functioning of the plant,
because it is coming in between the other land parcels of the petitioner and for that
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purpose, the Industrial Department has already requested the Collector to transfer
the land in survey Nos. 148 and 166 to Industrial Department, because though the
land is formally mentioned as containing road in the revenue records, but actually
there is no road and the alternate road which is actually present on the spot is on
some other survey numbers and on these facts, the Industrial Department has
requested the Collector to hand over the land in survey Nos.148 & 166 to the
Industrial Department.
3. It is contended by the petitioner that in view of judgment of Hon'ble Apex
Court in the case of C. Albert Morris v. K. Chandrasekharan and
Others, (2006) 1 SCC 228 wherein in paragraph 44 it is held that for the purpose
of grant of NOC under Rule 144 of Petroleum Rules no enquiry into ownership of
the land is contemplated nor the Collector has to enquire into the nature of right
claimed by the person, who has applied for NOC. It is further mentioned that even
the storage tank as per the proposal submitted to Controller of Explosives vide
Annexure P-13, is not proposed to come up at survey Nos.148 and 166.
4. The petitioner has further contended that the Collector on one hand has
forwarded the aforesaid proposal of Industrial Department back to it and on the
other hand has rejected the application of the petitioner for grant of NOC on the
ground that instructions of the said Department are awaited. It further the case of
the petitioner that a tender process initiated by OMCs would close on 07.10.2025
and despite the petitioner having requisite capacity of manufacture of Ethanol,
only for want of formality in the office of Collector, Narsinghpur, he would not be
in position to participate in the tender process. It is contended that the petitioner
has made a huge investment under loan taken from the Government agency for the
purpose of manufacture and storage of Ethanol.
5. Counsel for the State, in his turn, submitted that since there was
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encroachment on government land and therefore, the Collector has rightly rejected
the application for grant of NOC. It is further contended that the State would file a
detail reply in the matter.
6. Considering the rival submissions, it is directed that the Principal Secretary
of the Industries Department shall dwell upon the proposal of the Collector, which
has been sent to that Department in response to letter of the Industrial Department
dated 01.09.2025. Let the Principal Secretary take a final decision in the matter
within two days from today and not later than 01.10.2025. Thereafter, the
Collector shall decide the matter of grant of NOC afresh made taking into the
account the judgment of the Hon'ble Apex Court in the case of C. Albert Norris
(supra) and also the position that the petitioner has not sought NOC on the land
which is alleged to be Government land and on which no proposal for
establishment storage has been made and therefore, to what extent the relevance
of conversion of revenue land, would be there. Let the Collector take a decision
within further two days and not later than 03.10.2025.
List the case on 06.10.2025 on the top of the list for compliance report of
this order.
C.C. as per rules in course of the day.
(VIVEK JAIN)
JUDGE
ks
