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M/S.Padma Highways Filling ... vs The Regional Administrator – Cum
2022 Latest Caselaw 685 Mad

Citation : 2022 Latest Caselaw 685 Mad
Judgement Date : 12 January, 2022

Madras High Court
M/S.Padma Highways Filling ... vs The Regional Administrator – Cum on 12 January, 2022
                                                                                  W.P.No.10573 of 2022


                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                             RESERVED ON : 30.06.2022

                                          PRONOUNCED ON : 06.07.2022

                                                       CORAM

                                  THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE

                                              W.P.No.10573 of 2022 &
                                           W.M.P.Nos.10243 &10244 of 2022


                     M/s.Padma Highways Filling Station,
                     represented by its Managing Partner,
                     M.V.S.Suryanarayana Raju,
                     NH-214, Kanakalapeta,
                     Yanam – 533 464, Puducherry State.                     ...     Petitioner

                                                          Vs

                     1.The Regional Administrator – cum -
                        Sub – Divsional Magistrate,
                       Office of the Sub-Divisional Magistrate,
                       Government of Puducherry, Yanam.

                     2.The Project Director,
                       Ministry of Road Transport and Highways,
                       Government of India,
                       Project Implementation Unit, Machilipattinam,
                       Door No.41 – 1 / 12 – 2, Donka Road,
                       Krishna Lanka, Vijayawada – 520 013.



                     1/36




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                                                                                  W.P.No.10573 of 2022


                     3.The Joint Chief Controller of Explosives,
                       Ministry of Commerce and Industry,
                       Government of India,
                       Petroleum & Explosives Safety Organization (PESO),
                       Room No.602, Sixth Floor, C.G.O. Towers,
                       Kavadiguda, Secunderabad – 500 080.

                     4.The Executive Engineer to the Government of India,
                       Ministry of Road Transport & Highways (S & R (P&B) Section),
                       Transport Bhawan, No.1, Parliament Street, New Delhi.

                     5.The Member Secretary,
                       Pondicherry Pollution Control Committee,
                       Housing Board Complex,
                       Anna Nagar, Puducherry – 600 005.

                     6.The Divisional Manager,
                       M/s.Hindustan Petroleum Corporation Limited,
                       Visakha Regional Office, Petro Nilayam,
                       Post Box No.135, Visakhapatnam – 530 003.               ... Respondents

                     PRAYER: Writ petition filed under Article 226 of the Constitution of India
                     for writ of certiorarified mandamus calling for the records of the impugned
                     no objection certificate No.4178 / SDMY / D3/ Petrol / 2021 – 22 dated
                     12.01.2022 issued by the Regional Administrator-cum-Sub-Divisional
                     Magistrate, Yanam, Government of Puducherry and to quash the same as
                     non-est, ultra vires & void-ab-initio in the eyes of Law and consequently to
                     direct the Project Director, Ministry of Road Transport and Highways,
                     Government of India, Project Implementation Unit, Machilipattinam,
                     Vijayawada to cancel and annul the in-principle approval letter dated

                     2/36




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                                                                                      W.P.No.10573 of 2022


                     22.12.2021 for grant of No Objection Certificate and access permission for
                     laying approach road to M/s.Hindustan Petroleum Corporation Limited to
                     set up a retail outlet for MS (Petrol) / HSD (Diesel) at Town Survey
                     NO.C/7/16/1C Pt., C/7/13/4B Pt., C/7/13/5A Pt., Kanakalapeta, Yanam,
                     Union Territory of Puducherry by declaring the same as illegal, sham,
                     vitiated, without application of mind, contrary to guidelines.


                                        For Petitioner    : Mr.L.Swaminathan

                                        For Respondent 1 : Mr.C.T.Ramesh
                                                           Additional Government Pleader (Pondy)

                                        For Respondent 2 : Mr.S.S.Varma, SPC
                                                           Mr.K.Ramanamoorthy,
                                                           Central Government Standing Counsel

                                        For Respondent 5 : Mrs.A.Sathyabama, Standing Counsel

                                        For Respondent 6 : Mr.Mohammed Fayaz Ali



                                                            ORDER

The petitioner is running a petroleum filling station and they have

challenged the No Objection Certificate dated 12.01.2022 issued by the first

respondent and in-principle approval letter dated 22.12.2021 issued by the

second respondent in favour of the sixth respondent for resitement of the

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petroleum outlet of the HPCL from Rural Yanam to National Highways as

contemplated in Rule 1.5 & 1.6 of the guidelines issued for resitement of

retail outlet dealership by HPCL.

2. According to the petitioner, duty is cast upon the first respondent to

ascertain from the licensee regarding the necessity of resitement of HPCL

petrol bunk from Rural Yanam to National Highways, Yanam, more

particularly, when no documents have been filed by the sixth respondent to

the first respondent regarding the grant of approval by Director (M) as

stated in Rule 1.6 of the guidelines mentioned supra. According to the

petitioner, the fourth respondent had issued communication dated

26.06.2020 under the captioned subject namely “Guidelines/Norms for grant

of permission for construction of access to Fuel Stations, way side amenities,

connecting roads, other properties, Rest Area Complexes & such other

facilities” wherein Clause 4 (ii) clearly stipulates that “30 meter as frontage

and Depth”. According to the petitioner, the proposed HPCL outlet of the

sixth respondent does not have 30 meter depth.

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3. According to the petitioner, it is mandatory for the first respondent

to verify and ascertain whether there exists 30 meter depth as per clause 4(ii)

referred to supra before issuing the impugned no objection certificate as

according to the petitioner, after excluding the right of way-line (ROW) of

National Highway, the proposed HPCL outlet does not have 30 meters

depth. Hence according to the petitioner, No Objection Certificate has been

issued glaringly to the sixth respondent by violating the guidelines.

4. According to the petitioner, the Central Pollution Control Board,

Delhi through Office Memorandum dated 07.01.2020 has issued guidelines

for setting up of new Petrol Pumps in compliance with the Order of the

National Green Tribunal dated 18.01.2019 passed in O.A.No.86 of 2019.

According to the petitioner, the first respondent before issuing the impugned

No Objection Certificate dated 12.01.2022 ought to have ascertained from

the Puducherry Pollution Control Board (fifth respondent herein) as to

whether the proposed HPCL outlet is in consonance with the guidelines for

setting up of New Petrol Pump station.

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5. According to the petitioner, it is mentioned in the impugned No

Objection Certificate dated 12.01.2022 that “... additional safety measures

as prescribed by PESO shall also be implemented since the radial distance of

proposed Retail Outlet is less than 50 meters from the nearest Residential

zone ....”. According to the petitioner, the Town and Country Planning

Department, Government of Puducherry in its report dated 10.01.2022

addressed to the First respondent has stated that one residential zone is

located at a distance of 42 meters. According to the petitioner, duty is cast

upon the sixth respondent to satisfy the first respondent regarding the steps

taken or proposed to be taken by way of an affidavit/undertaking the reasons

for not adhering to 50 meters yard-stick as prescribed in the Guidelines.

6. According to the petitioner, the proposed HPCL fuel station of the

sixth respondent is only 26.64 meters away from the existing residential

houses and the measurement mentioned by the Town and Country Planning

Department, Government of Puducherry is an exaggeration and not as per

the correct measurements. It is further contended by the petitioner that the

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first respondent cannot issue No Objection Certificate based on certain

conditions which has to be fulfilled by the sixth respondent in future.

According to them, the impugned No Objection Certificate dated 12.01.2022

issued in favour of the sixth respondent is an abuse of process of law as it

has violated the norms and guidelines.

7. It is further contended by the petitioner that the impugned in-

principle approval letter dated 22.01.2021 is addressed only to

M/s.Hindustan Petroleum Corporation, Visakhapatinam, Andhra Pradesh

and not addressed to an individual by name Prashanth Chandra Villa as

claimed by the sixth respondent. According to the petitioner, the question of

exhausting / extinguishing alternative remedy by the petitioner will apply

only when No Objection Certificate issued to the licensee ceases to have any

right to use the site for storing Petroleum. According to the petitioner, in the

instant case, the writ petitioner is not a license holder and the contentions of

the second and sixth respondents in this regard is wrong which portrays the

misunderstanding of the rules by the respondents.

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8. However, the first respondent denies the allegations made by the

petitioner and states that only by following the due procedure and after

obtaining No Objection Certificates from all the concerned

departments/authorities namely: (a) The Commissioner, Yanam

Municipality, Yanam, (b) The Executive Engineer, PWD, Yanam, (c) The

Junior Town Planner, Town & Country Planning Department, Yanam, (d)

The Inspector of Police, Yanam, (e) The Deputy Tahsildar (Revenue),

Yanam and (f) The Station Officer, Fire Service Unit, Yanam, the impugned

No Objection Certificate was issued in favour of the sixth respondent along

with in-principle approval given by the second respondent. According to the

first respondent, the objections raised by the petitioner in respect of distance

between two fuel stations is not maintainable as per the latest and relevant

guidelines issued by the Ministry of Road Transport and Highways,

Government of India vide Notification dated 26.06.2020 and the said

notification reads as follows:

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Distance 300m* - For both divided and undivided carriageway *(including between deceleration and acceleration lanes).

                        two      fuel
                        stations      However, this restriction shall not apply in case access/egress

for all such fuel stations are provided through common service road of 7.0m width and not directly to NH. Further, access for fuel stations at closer proximity than 300m may be allowed provided entry/exit for both Fuel Stations are provide through service road of 7.0m width having sufficient length; further, additional length of such service road shall be constructed at the cost of the later fuel station owner/company seeking grant of permission for access for the facility.

9. According to the first respondent, the service road with width of

7.50 meters has been developed by National Highway Authority of India

along section of NH-216 which is providing ingress/egress to the petitioner's

Fuel station as well as the proposed Fuel Station of the sixth respondent.

According to the first respondent, the impugned No Objection Certificate

and in-principle approval has been issued only in conformity with the above

said guidelines.

10. The first respondent has also stated that the objections raised by

the petitioner with regard to violation of guidelines issued by the Central

Pollution Control Board in its memorandum dated 07.01.2020 in

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compliance with order dated 18.01.2019 of the National Green Tribunal

passed in O.A.No.86 of 2019 are also not maintainable for the following

reasons:

Description of CPCB Guide Lines Status/Report as at site and as per local laws in comparison to the CPCB Guidelines.

New Retail outlets shall not be A school is existing 130.00 mts away located within a radial distance of from the new proposed retail outlet of 50 meters (from fill point the M/s. HPCL which is satisfying the /dispensing units / vent pipe which criteria of CPCB guidelines is nearest) from schools New Retail outlets shall not be No hospital is existing within 100 mts located within a radial distance of radius of the newly proposed retail 50 meters (from fill point / outlet of the M/s. HPCL which is dispensing units / vent pipe which satisfying the criteria of CPCB is nearest) from hospitals (10 bends guidelines and above).

New Retails outlets shall not be The entire land in T.S.NO.C/7/16/1pt located within a radial distance of out of which in a part where the new 50 meters (from fill point / proposed out let of M/s. HPCL is dispensing units / vent pipe which designated as Commercial Zone as per is nearest) from Residential Areas the Comprehensive Development Plan designated as per local laws. In of the Yanam region. The remaining case of constraints in providing 50 land of the above Survey Number is mts distance, the retail outlet shall classified as Residential Zone. This implement additional safety land of residential zone in the above measures as prescribed by PESO. Survey Number is existing 42.00 mts In no case the distance between away from the new proposed out let of new retail outlet from schools, M/s. HPCL (from proposed fill point / hospitals and residential area dispensing units to the edge of the designated as per local laws shall residential zone). More over as per the be less than 30 mts. local law, i.e. Puducherry Building Bye Laws and Zoning Regulations, 2012

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Description of CPCB Guide Lines Status/Report as at site and as per local laws in comparison to the CPCB Guidelines.

petrol bunks are permitted in Residential zones also. However, since the designated residential zone / area is located at a radial distance of less than 50.00 mts. But more than 30.00 mts, NOC was issued subject to satisfying additional safety measures as prescribed by PESO.

11. According to the sixth respondent, they have obtained No

Objection Certificate and in-principle approval only by following the due

procedure. According to the sixth respondent, they issued the letter dated

06.11.2021 seeking access permission from the second respondent for

establishing the petroleum retail outlet at the proposed location. According

to them, the second respondent after examining the request, granted

permission under impugned order dated 22.12.2021. Therefore, the first

respondent has issued the impugned No Objection Certificate dated

12.01.2022 under Rule 144 of the Petroleum Rules 2002. Consequently, the

third respondent has issued a prior approval dated 03.02.2022 whereby, the

plan submitted for construction of the petroleum retail outlet has been

approved and the construction of the retail outlet is in progress as per the

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approved plan.

12. According to the sixth respondent, the petitioner who is a dealer of

Indian Oil Corporation Limited, is a competitor for the sixth respondent.

According to them, it is settled law that a business rival cannot maintain a

writ petition against a competitor. According to the sixth respondent, a party

who is not aggrieved cannot maintain a writ petition and the mere statement

that provision of law has been violated is not sufficient to enable the third

party who is not aggrieved to challenge the order in question.

13. According to the sixth respondent, the retail outlet site to be

established by them for which No Objection Certificate and in-principle

approval were issued, is within the norms of National Highways. They have

reiterated the contentions of the first respondent which has been referred to

supra.

14. According to the sixth respondent, the petitioner has no locus

standi or privity to question the internal guidelines of the sixth respondent.

According to the sixth respondent, the present retail outlet has been

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established as per the policy guidelines of the sixth respondent. The

petitioner has extracted an internal policy of HPCL for resitement of its retail

outlets and the said guidelines framed by HPCL is a matter of internal policy

and the petitioner has no locus standi to question the same. According to the

sixth respondent, the said internal policy is irrelevant for the present case.

15. According to the sixth respondent, this Court by its order dated

07.03.2022 in W.P.No.5066 of 2022 dismissed the writ petition of the

petitioner granting him leave to challenge No Objection Certificate already

granted in favour of the sixth respondent in the manner known to law.

According to the sixth respondent, as per Rule 150 of the Petroleum Rules,

2002, the issuing authority or the State Government is empowered to cancel

No Objection Certificate, if the licensee ceases to have any right to use the

site for storing petroleum. According to the sixth respondent, it is provided

that before cancelling a No Objection Certificate, a licensee shall be heard.

Therefore, according to the sixth respondent, as per law, the petitioner ought

to have extinguished his alternate remedy by approaching the issuing

authority or the State Government. Instead, the petitioner has directly

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approached this Court without exhausting alternate remedy and therefore,

the present writ petition is not maintainable.

16. According to the sixth respondent, the Indian Road Congress

Guidelines is not applicable anymore in view of Guidelines framed by the

Ministry of Road Transport and Highways under the control of National

Highways (Land and Traffic) Act, 2002. Since the National Highways is

governed by a separate enactment, the IRC guidelines shall not apply.

17. Heard Mr.L.Swaminathan, learned counsel for the petitioner,

Mr.C.T.Ramesh, learned Additional Government Pleader (Pondy) appearing

for the first respondent, Mr.K.Ramanamoorthy, learned Central Government

Standing Counsel appearing for the second respondent, Ms.A.Sathyabama,

learned counsel appearing for the fifth respondent and Mr.Mohammed

Fayaz Ali, learned counsel appearing for the sixth respondent.

18. Learned counsel for the petitioner reiterated the contents of the

affidavit filed in support of this writ petition and would submit that in the

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impugned No Objection Certificate, it has not been stated anything about the

necessity for “Resitement of Hindustan Petroleum Corporation Limited from

Rural Yanam to National Highway” as contemplated in Clause 1.5 and 1.6

of the guidelines issued for resitement of retail outlet dealership by the sixth

respondent. According to him, duty is cast upon the first respondent to

ascertain from the licensee regarding the necessity of resitement of HPCL

Petrol bunk from Rural Yanam to National Highway, Yanam. According to

him, as per Clause1.6 of the guidelines, no resitement shall be made from

remote/low service areas without the approval of Director (M).

19. Learned counsel for the petitioner would further submit that the

Ministry of Road Transport and Highways, Government of India, had issued

communication dated 26.06.2020 under the captioned subject regarding

“Guidelines / Norms for grant of permission for construction of access to

fuel stations, way side amenities, connecting roads, other properties, Rest

Area Complexes & such other facilities” wherein clause 4(ii) stipulates that

“30 meters as frontage and depth”. According to the learned counsel for the

petitioner, in the instant case, the impugned No Objection Certificate has

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been issued despite the fact that the proposed HPCL outlet does not have 30

meters depth.

20. Learned counsel for the petitioner also submitted that the

guidelines issued by the Central Pollution Control Board, Delhi for setting

up of new petrol bunks has also not been fulfilled. Learned counsel for the

petitioner would further submit that in the impugned No Objection

Certificate, it has been mentioned that “... additional safety measures as

prescribed by PESO shall also be implemented since the radial distance of

proposed Retail Outlet is less than 50 meters from the nearest Residential

zone ....”. According to the learned counsel for the petitioner, the Town and

Country Planning Department, Government of Puducherry in its report

dated 10.01.2022 addressed to the first respondent has stated that one

residential zone is located at a distance of 42 meters. According to him,

duty is cast upon the sixth respondent to satisfy the first respondent

regarding the steps taken or proposed to be taken by way of an

affidavit/undertaking the reasons for not adhering to 50 meters yard-stick as

prescribed in the Guidelines.

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21. According to the learned counsel for the petitioner, the proposed

HPCL fuel station of the sixth respondent is only 26.64 meters away from

existing residential houses and the measurement mentioned by the Town

and Country Planning Department, Government of Puducherry is an

exaggeration and not as per the actual measurements. He would further

submit that the first respondent cannot issue No Objection Certificate based

on certain conditions which has to be fulfilled by the sixth respondent in

future.

22. Learned counsel for the petitioner would submit that the

impugned No Objection Certificate dated 12.01.2022 and the impugned in-

principle approval letter dated 22.12.2021 are addressed only to

M/s.Hindustan Petroleum Corporation, Visakhapatinam, Andhra Pradesh

and not addressed to an individual by name Prashanth Chandra Villa as

claimed by the sixth respondent. According to the learned counsel for the

petitioner, the question of exhausting / extinguishing alternative remedy by

the petitioner will apply only if No Objection Certificate issued to the

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licensee ceases to have any right to use the site for storing Petroleum.

According to him, in the instant case, the writ petitioner is not a license

holder and the contentions of the second and sixth respondents in this regard

is wrong which portrays the misunderstanding of the rules by the

respondents.

23. Further the learned counsel for the petitioner would submit that

the representations/objections of the petitioner dated 21.12.2021,

23.12.2021, 21.01.2022 & 02.02.2022 have neither been answered by the

first respondent nor given any reasons before this Court as to how the said

representations were not answered and kept in abeyance. According to him,

the urgency shown in issuing the impugned No Objection Certificate smacks

suspicion.

24. Learned Additional Government Pleader (Pondy) appearing for

the first respondent would submit that only by following the due procedure,

the impugned No Objection Certificate was issued in favour of the sixth

respondent. He would further submit that only after obtaining No Objection

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Certificate from the concerned Departments/authorities, No Objection

Certificate has been issued in favour of the sixth respondent by the first

respondent for establishing the fuel station. He would also submit that the

objections raised by the petitioner with regard to the distance between the

petitioner's fuel station and the sixth respondent's fuel station are not

maintainable as per the latest and relevant guidelines issued by the Ministry

of Road Transport and Highways, Government of India dated 26.06.2020.

According to him, even in the cases where distance between two fuel

stations is less than 300 meters, No Objection Certificate can be issued

provided that the entry/exit for both the fuel stations are provided through a

service road of 7.0 meters width. According to him, the sixth respondent fuel

station has satisfied the said criteria and therefore, grant of No Objection

Certificate in their favour is legally valid.

25. Learned Additional Government Pleader (pondy) appearing for

the first respondent would further submit that the objections raised by the

petitioner that the sixth respondent has violated the guidelines issued by the

Central Pollution Control Board, Delhi is totally false. According to him, the

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sixth respondent has not committed any violation of Central Pollution

Control Board guidelines.

26. Learned counsel for the sixth respondent would reiterate the

submissions made by the learned Additional Government Pleader (Pondy)

for the first respondent. Apart from that he would submit that a writ petition

cannot be filed by a business rival. In support of his submissions, he relied

upon the following judgments viz.,

(a) A Division Bench Judgment of this Court in the case of Nataraja

Agencies vs. Secretary, Ministry of petroleum & others reported in (2005)

1 CTC 394;

(b) Order of this Court in the case of Palani Murugan Agencies vs.

District Collector reported in (2005) 1 LW 792; and

(c) Order of this Court in the case of P.Selvi vs. District Magistrate

& others reported in AIR 2021 Mad 27.

27. Learned counsel for the sixth respondent would also submit that

there is no locus standi for the petitioner to file this writ petition. According

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to him, a third party who is not aggrieved cannot maintain a writ petition

and a mere statement of violation of provision of law is not sufficient to

enable the third party who is not aggrieved to challenge the order in

question. In support of the said submission, the learned counsel for the sixth

respondent relied upon the decision rendered in Pattukottai Azhagiri

Transport Corporation Limited vs. V.K.Velayutham & Sons, Imperial

Motor Services and others reported in (1993) 1 MLJ 249.

28. Learned counsel for the sixth respondent would reiterate the

submissions made by the learned Additional Government Pleader (Pondy)

appearing for the first respondent that only after inspection by the Town and

Country Planning, Government of Puducherry, the impugned No Objection

Certificate dated 12.01.2022 has been issued.

29. Learned counsel for the sixth respondent would further submit

that the petitioner has no locus standi or privity to question the internal

guidelines of the sixth respondent. According to him, the internal guidelines

framed by the sixth respondent is a matter of internal policy and the

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petitioner has no locus standi to question the same. Learned counsel for the

sixth respondent would submit that the present writ petition is not

maintainable in view of the fact that there is an alternative remedy available

as per Rule 150 of the Petroleum Rules 2002. Instead of approaching the

District Authority or the State Government for cancellation of No Objection

Certificate, the petitioner has filed this writ petition which is not

maintainable. Learned counsel for the sixth respondent further submit that

the Indian Road Congress Guidelines are only directly and mandatory.

Discussion:

30. The first respondent has issued No Objection Certificate to the

sixth respondent only by following the due procedure established under law.

The first respondent has obtained No Objection Certificates from all the

concerned departments/authorities and the details of which are as follows:

(a) The Commissioner, Yanam Municipality, Yanam,

b) The Executive Engineer, PWD, Yanam,

(c) The Junior Town Planner, Town & Country Planning Department,

Yanam,

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(d) The Inspector of Police, Yanam,

(e) The Deputy Tahsildar (Revenue), Yanam and

(f) The Station Officer, Fire Service Unit, Yanam.

Only after obtaining No Objection Certificates from the aforementioned

Departments/authorities, the first respondent has issued the impugned No

Objection Certificate in favour of the sixth respondent.

31. The objections raised by the petitioner in respect of distance

between two fuel stations is not maintainable as per the guidelines issued by

the Ministry of Road Transport and Highways, Government of India dated

26.06.2020 which reads as follows:

Distance 300m* - For both divided and undivided carriageway *(including between deceleration and acceleration lanes).

                        two      fuel
                        stations      However, this restriction shall not apply in case access/egress

for all such fuel stations are provided through common service road of 7.0m width and not directly to NH. Further, access for fuel stations at closer proximity than 300m may be allowed provided entry/exit for both Fuel Stations are provide through service road of 7.0m width having sufficient length; further, additional length of such service road shall be constructed at the cost of the later fuel station owner/company seeking grant of permission for access for the facility.

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32. In the case on hand, a service road with width of 7.50 meters has

been developed by the National Highways Authority of India along section

of NH-216 which is providing ingress/egress to petitioner's fuel station and

will also provide ingress/egress for the proposed fuel station. The first

respondent has categorically stated that only in accordance with the

guidelines issued by the Ministry of Road Transport and National

Highways, Government of India dated 26.06.2020, the impugned “No

Objection Certificate” has been issued in favour of the sixth respondent.

33. Insofar as the objections raised with regard to the alleged violation

of the guidelines issued by the Pollution Control Board, Puducherry is

concerned, the first respondent has given sufficient explanation in its counter

affidavit. The details of the explanation submitted by the first respondent

reads as follows:

Description of CPCB Guide Status/Report as at site and as per Lines local laws in comparison to the CPCB Guidelines.

New Retail outlets shall not be A school is existing 130.00 mts away located within a radial distance of from the new proposed retail outlet of the

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Description of CPCB Guide Status/Report as at site and as per Lines local laws in comparison to the CPCB Guidelines.

50 meters (from fill point M/s. HPCL which is satisfying the criteria /dispensing units / vent pipe which of CPCB guidelines is nearest) from schools New Retail outlets shall not be No hospital is existing within 100 mts located within a radial distance of radius of the newly proposed retail outlet 50 meters (from fill point / of the M/s. HPCL which is satisfying the dispensing units / vent pipe which criteria of CPCB guidelines is nearest) from hospitals (10 bends and above).

New Retails outlets shall not be The entire land in T.S.NO.C/7/16/1pt out located within a radial distance of of which in a part where the new 50 meters (from fill point / proposed outlet of M/s. HPCL is dispensing units / vent pipe which designated as Commercial Zone as per is nearest) from Residential Areas the Comprehensive Development Plan of designated as per local laws. In the Yanam region. The remaining land of case of constraints in providing 50 the above Survey Number is classified mts distance, the retail outlet shall as Residential Zone. This land of implement additional safety residential zone in the above Survey measures as prescribed by PESO. Number is existing 42.00 mts away from In no case the distance between the new proposed out let of M/s. HPCL new retail outlet from schools, (from proposed fill point / dispensing hospitals and residential area units to the edge of the residential zone). designated as per local laws shall More over as per the local law, i.e. be less than 30 mts. Puducherry Building Bye Laws and Zoning Regulations, 2012 petrol bunks are permitted in Residential zones also.

However, since the designated residential zone / area is located at a radial distance of less than 50.00 mts.

But more than 30.00 mts, NOC was issued subject to satisfying additional safety measures as prescribed by PESO.

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34. After giving its explanation, the first respondent has categorically

pleaded that the sixth respondent has not violated the guidelines of Ministry

of Road Transport and Highways, Government of India dated 26.06.2020

and office memorandum of Central Pollution Control Board, New Delhi

dated 07.01.2020. The Division Bench of this Court in the case of Nataraja

Agencies vs. Secretary, Ministry of petroleum & others reported in (2005)

1 CTC 394 has followed the decision of the Hon'ble Supreme Court in the

case of Mithilesh Garg vs. Union of India reported in (1992) 1 SCC 168

and held that a business rival cannot maintain a writ petition. The relevant

paragraph of the aforesaid decision reads as follows:

“3. The Supreme Court in Mithilesh Garg v. Union of India, , held that a rival businessman cannot file a writ petition, challenging the setting-up of a similar unit by another businessman, on the ground that establishing a rival business close to his business-place would adversely affect his business interest, even if the setting-up of the new unit is in violation of law. In Mithilesh case, cited supra, the Supreme Court followed its own decision in Rice and Flour Mills v. N.T. Gowda, , wherein it was held that a rice mill-owner has no locus standi to challenge under Article

https://www.mhc.tn.gov.in/judis W.P.No.10573 of 2022

226, the setting up of a new rice-mill by another even if such setting up be in contravention of Section 8(3)(c) of the Rice Milling Industry (Regulation) Act, 1958 because no right vested in such an applicant is infringed.

4. In the present case, the only grievance of the appellant is that if the fourth respondent is permitted to set up her retail outlet within one kilometer radius of the appellant's outlet, his business interest would be adversely affected. In our opinion, the appellant has no locus standi at all to complain against the setting up of a rival retail outlet by the fourth respondent, near his place of business, on the ground that would affect his business interest, inasmuch as the damage, if any, suffered thereby was damnum sine injuri-adamage without infringement of legal right. In our opinion, this will only result in promoting competition among the traders, which is good for the consumers. Merely because some of the customers may switch over to the rival retail outlet does not mean that public interest will suffer rather, in our opinion, it will benefit the consumers because, when there is competition, the businessmen are compelled to provide better quality products at reasonable rates.”

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35. The aforesaid decision has also been followed in the case of

Palani Murugan Agencies vs. District Collector reported in (2005) 1 LW

792 and P.Selvi vs. District Magistrate & Others reported in AIR 2021

MAD 27. In the case on hand, admittedly the petitioner is having a

petroleum filling station in the very same area where the proposed petroleum

outlet is likely to be established by the sixth respondent. Being a competitor

as held in the aforesaid decisions, the present writ petition is not

maintainable.

36. The petitioner is a third party to the impugned no objection

certificate. A mere violation of provision of law is not sufficient to enable the

third party to challenge the impugned No Objection Certificate. This Court

in its decision namely Pattukottai Azhagiri Transport Corporation Limited

vs. V.K.Velayutham & Sons, Imperial Motor Services and others reported

in (1993) 1 MLJ 249 reiterated the said proposition which reads as follows:

“19. In the Nogar Rice and Flour Mills and Ors. v. N. Teekappa Gowda & Brothers and Ors. , it was held that a

https://www.mhc.tn.gov.in/judis W.P.No.10573 of 2022

rice mill owner had no locus standi to challenge under Article 226 of the Constitution of India, the setting up of a new rice mill by another, even if it was in contravention of Section 8(3)(c) of the Rice Milling Industry (Regulation) Act, 1958), because no right vested in such a person was infringed. The position was reiterated in Nasbhai Motibhai Desai v. Roshan Kumar, Haji Bashir Ahmed. It was held that a rival in trade, in that case a cinema theatre owner, had no locus standi to invoke the special jurisdiction under Article 226 of the Constitution of India.

20. Following the said rulings, a Full Bench of this Court held in M.L. Krishnamurthy v. The District Revenue Officer, Vellore (1989)2 LW. 442, that an existing rice mill owner was not a person aggrieved, when permit or licence under the Rice Milling Industry (Regulation) Act was granted to another person, for entitling him to file a writ petition challenging the grant. In Mithilesh Garg, etc. v. Union of India and Ors. etc. etc. , already referred to in this judgment, the Apex Court has quoted in extenso the observations made by Sarkaria, J., in J.M. Desai's case , and reiterated the proposition. In the circumstances, the petitioner is not a person aggrieved to maintain the writ

https://www.mhc.tn.gov.in/judis W.P.No.10573 of 2022

petition against the grant of permit to the first respondent with curtailment.”

37. The subject retail outlet having been established as per the policy

of the sixth respondent, the petitioner cannot invoke the guidelines framed

by the sixth respondent for the purpose of questioning the establishment of

petroleum fuel station by the sixth respondent. The guidelines of the sixth

respondent relied upon by the petitioner has no relevance to the case on

hand. There is also an appellate remedy available to the petitioner if

aggrieved by the issuance of the impugned No Objection Certificate under

Rule 150 of the petroleum Rules 2002 which is extracted hereunder:

“150. Cancellation of no-objection certificate.-

(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 Government is satisfied, that the licensee has ceased to have any right to use the site for storing petroleum:

Provided that before cancelling a no-objection certificate, the licensee shall be given a reasonable opportunity of

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being heard.

(2) A District Authority or a State Government cancelling a no-objection certificate shall record, in

writing, the reasons for such cancellation and shall immediately furnish to the licensee and to the licensing authority concerned, copy of the order cancelling the no- objection certificate.”

38. The petitioner has not exercised the said appellate remedy, but

instead has chosen to file this writ petition. When the first respondent has

issued No Objection Certificate for the sixth respondent based upon various

statutory reports that too, when the petitioner themselves do not claim that

they are bogus, this Court while exercising jurisdiction under Article 226 of

the Constitution of India cannot make a roving enquiry with regard to those

certificates given by the experts in their respective fields. The Indian Road

Congress Guidelines relied upon by the petitioner is also not mandatory as

held by the various decisions of this Court.

39. Some of the grounds raised in this writ petition were also raised in

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a recent decision dated 21.06.2022 rendered by the First Division Bench of

this court is somewhat identical matter in W.P.Nos.4321 of 2020 & 2951 of

2022 and were rejected. Even in that decision, the proposed petroleum outlet

was located in the service road along with another existing petroleum outlet.

The Division Bench of this Court refused to entertain the challenge to the No

Objection Certificate granted for establishment of a new petroleum retail

outlet. It held as follows:

“25. The argument of learned Senior Counsel appearing for the third respondent is about the application of the said guidelines of MORTH (Ministry of Road Transport and Highways). It is submitted that the retail outlet would not be on the national highways, but on the service lane and thereby the guidelines of the MORTH are not applicable. The statement aforesaid has been supported by learned counsel appearing for the NHAI. It is stated by him that the guidelines of MORTH would not be applicable if the retail outlet is brought on the service lane, but would apply only when it is established on the national highways.” In the instant case also, the petroleum retail outlet to be established by the

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sixth respondent is not going to be located in the highways, but is going to

be located in the service lane.

41. For the foregoing reasons, this Court does not find any merit in

this writ petition. Accordingly, this writ petition is dismissed. No costs.

Consequently, connected miscellaneous petitions are closed.

06.07.2022 nl

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To

1.The Regional Administrator – cum -

Sub – Divsional Magistrate, Office of the Sub-Divisional Magistrate, Government of Puducherry, Yanam.

2.The Project Director, Ministry of Road Transport and Highways, Government of India, Project Implementation Unit, Machilipattinam, Door No.41 – 1 / 12 – 2, Donka Road, Krishna Lanka, Vijayawada – 520 013.

3.The Joint Chief Controller of Explosives, Ministry of Commerce and Industry, Government of India, Petroleum & Explosives Safety Organization (PESO), Room No.602, Sixth Floor, C.G.O. Towers, Kavadiguda, Secunderabad – 500 080.

4.The Executive Engineer to the Government of India, Ministry of Road Transport & Highways (S & R (P&B) Section), Transport Bhawan, No.1, Parliament Street, New Delhi.

5.The Member Secretary, Pondicherry Pollution Control Committee, Housing Board Complex, Anna Nagar, Puducherry – 600 005.

https://www.mhc.tn.gov.in/judis W.P.No.10573 of 2022

6.The Divisional Manager, M/s.Hindustan Petroleum Corporation Limited, Visakha Regional Office, Petro Nilayam, Post Box No.135, Visakhapatnam – 530 003.

ABDUL QUDDHOSE, J.

nl

Pre-Delivery order in W.P.No.10573 of 2022

https://www.mhc.tn.gov.in/judis W.P.No.10573 of 2022

06.07.2022

https://www.mhc.tn.gov.in/judis

 
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