LAXMI SERVICE STATION Vs. UNION OF INDIA

JUDGEMENT

(1.) The present petition has been filed under Article 226 of the Constitution of India seeking quashment of the order of cancellation of No Objection Certificate dtd. 14/7/2022 and also a direction to permit the petitioner Firm to operate the retail outlet situated at Plot No.110, Ushaganj, Opposite G.P.O, A.B.Road, Indore which has been seized with effect from 3/5/2022 and a direction to resume the sales and supply of petroleum products to the retail outlet of the petitioner firm and other reliefs.

(2.) The facts of the case are that the petitioner Firm is a partnership firm and is engaged in the business of petroleum products through its filling and service centre/retail outlet known as 'M/s. Laxmi Service Station' situated at A.B. Road, G.P.O Square, Indore. For establishing a retail outlet, as per provisions under the Petroleum Act, 1934, a No Objection Certificate was granted vide letter dtd. 30/8/1957 to M/S. Standard Vacuum Oil Company. The said petrol pump was transferred to Hindustan Petroleum Corporation Limited (in short referred as 'HPCL') and the HPCL has granted the same retail outlet to ? the petitioner Firm as a Corporation owned/leased outlet which was commissioned since December, 1971. Thereafter the petitioner Firm has been continuously operating the retail outlet for which lease agreement as well as dealer ship agreements were executed between the petitioner Firm and HPCL. Currently the lease agreement was executed on 12/5/2006 for the period of 30 years i.e. upto 31/3/2035 on the terms and conditions contained in the lease agreement. The petitioner Firm has been appointed as Dealer by the oil company for the retail, sale and supply of petroleum products i.e. motor spirit (petrol) and HSD (diesel) since last more than 50 years. Lastly, dealership agreement was executed on 22/9/2014 for a period of 10 years i.e. upto 31/9/2024. It is further stated that the import, transport, production and storage of petroleum products are governed by the provisions of Petroleum Act, 1934. It is submitted that under the provisions of the Act, the Rules have been framed which are called the Petroleum Rules 2002. As per Chapter VII of the aforesaid Rules, granting of license is prescribed under Rule 141 and Rule 144 provides for No Objection Certificate. The Rules 148 provides for renewal of license as well as Rule 149 and 150 provides for refusal of NOC and cancellation of NOC. As per the provisions of Rule 148 of Rules 2002, the Controller of Explosives has renewed the existing petroleum class A and B. The license granted to the petitioner has been renewed by order dtd. 22/1/2015 upto 31/12/2024.

(3.) On 2/5/2022 an incident of fire had taken place while unloading the petroleum product at M/s. Laxmi Service Station at Indore at about 12.04 PM during Tank Truck (TT) decantation and the employees as well as partner of the Firm has taken precautionary measures and the fire was controlled with the assistance of fire equipments. The incident was reported to the HPCL officials at about 12.10 PM. The petitioner Firm narrated the incident that there was minor seepage from Hose Coupling at the decantation end, therefore, spilled product was accumulated in the unloading chamber and fire occurred at the TT Decantation Pit while removing the spilled product from the decantation chamber by a sponge, based upon which an investigation team was constituted by the HPCL for carrying out the inspection. Three members investigation team visited the retail outlet on 3/5/2022 at 12.30 PM and had submitted its report by recommending for issuance of Standard Operating Procedure, compulsory use of non-static material during the decantation process, dedicated unloading hose pipe at the outlet and also strict compliance of safety measures, initiation of action against the retail outlet employees and IT Crew who were involved in unloading process. It is further submitted that on the date of incident i.e. 2/5/2022 the District Food Officer has carried out inspection and sampling and nothing wrong has been found by him. The remaining petroleum product of Tank Tanker (TT) decanted in presence of the officials of Food Department and the retail outlet was continued to be operated, which was later ceased by the District Authorities on 3/5/2022.