WP(MD)/26634/2026 of R.Ravichandran Vs The Divisional Manager (Retail Business) on 12 November 2026

ORDER

The first respondent was operating a retail fuel outlet at Plot No.164/6A, Neivasal Thenpathi Village, Orathanadu Taluk, Thanjavur. Earlier, a No Objection Certificate was issued by the District Revenue Officer, Thanjavur, on 24.11.1994 under Rule 144 of the Petroleum Rules, 2002, to the earlier owner of the premises, Mr.G.Manivelan. On that basis, the second respondent had issued an Explosives License to the first respondent to store and sell petroleum products within the premises. Subsequently, the District Revenue Officer cancelled the No Objection Certificate on 29.01.2026 under Rule 150(1) of the Petroleum Rules, 2002.

2. In view of said cancellation of the No Objection Certificate, the petitioner has approached this Court for a Mandamus directing the respondents to return or cancel the Final Explosives Licence bearing No.P/SC/TN/14/1362 (P33465) and to dismantle and remove all the equipment in the fuel station.

3. Learned counsel for the first respondent confirms that the fuel station is not currently operating. He also submits that the first respondent is ready and willing to remove all the equipment from the site within six months from today.

4. Learned counsel for the petitioner contends that the licence under the Petroleum Rules is also liable to be cancelled ipso facto upon cancellation of the No Objection Certificate by the District Revenue Officer. He relies on a judgment of the Kerala High Court in W.P.(C) No.39399 of 2025 in Choorapilan Jameela and others vs. Padavanna Shamseer and others, dated 12.11.2025 in this regard.

5. Rule 152(1) of the Petroleum Rules, 2002, reads as under: “152. Suspension and cancellation of licence.

(1) Every licence granted under these rules shall.-

(i) stand cancelled, if the licensee ceases to have any right to the site for storing petroleum;

(ii) stand cancelled, if the no-objection certificate is cancelled by the District Authority or the State Government in accordance with sub-rule (1) of rule 150;

(iii) be liable to be suspended or cancelled by an order of the licensing authority for any contravention of the Act or of any rule thereunder or of any condition contained in such licence, or by order of the Central Government, if it is satisfied that there are sufficient ground for doing so:

Provided that - (a) before suspending or cancelling a licence under this rule, the holder of the licence shall be given an opportunity of being heard; (b) the maximum period of suspension shall not exceed three months;

and

(c) the suspension of a licence shall not debar the holder of the licence from applying for its renewal in accordance with the provisions of rule 148.”

6. On examining the above Rule, it appears that the licence granted under the Petroleum Rules shall stand ipso facto cancelled if the licensee ceases to have any right to the site for storing petroleum or if the No Objection Certificate granted by the District Authority or the State Government is cancelled. It also provides for suspension or cancellation by an order of the licensing authority for any contravention of the Act or the rules framed thereunder or for violation of any conditions imposed in the licence. Suspension or cancellation under clause (iii) of sub-rule (1), therefore, entails a decision as to whether there was a contravention of the Act, the rules or the licence conditions. Consequently, the proviso prescribes an opportunity of being heard to the licensee in that situation. By contrast, in cases of ipso facto cancellation by operation of law, the only limited inquiry would be whether the cancellation of the No Objection Certificate was challenged and, if so, whether such cancellation was interfered with by a higher authority or a court of law.

7. In this case, the first respondent has not challenged the cancellation of the No Objection Certificate and, in fact, states that the retail fuel station is not being operated.

8. Considering the above, this Writ Petition is disposed of on the following terms:

i. The second respondent is directed to issue an order of cancellation within two (2) weeks from the date of receipt of a copy of this order;

ii. The first respondent is directed to dismantle and remove all the equipment, including fuel pumps, underground tanks, etc., from the premises at Plot No.164/6A, Neivasal Thenpathi Village, Orathanadu Taluk, Thanjavur, within a maximum period of four

(4) months from the date of receipt of a copy of this order; and

iii. There shall be no order as to costs. 12-11-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No apd

To

1. The Divisional Manager (Retail Business) Bharat Petroleum Corporation Limited First Floor, Raj Towers, Near Kalaignar Arivalayam, Karur Byepass Road,Tiruchirappalli - 620 002

2. The Joint Chief Controller of Explosives South Circle, Chennai, Petroleum and Explosives Safety Organisation (PESO), A and D Wing, Block 1-8, 2nd Floor, Shastri Bhawan, No.26, Haddows Road, Nungambakkam, Chennai - 600 006

SENTHILKUMAR RAMAMOORTHY, J. apd WP(MD) No. 26634 of 2026 12-11-2026