Indian Oil Corporation Ltd v. Arti Devi Dangi

Judgment

#1. Through the instant petition, cast under Article 226 of the Constitution of India, legality of the order dated 18.10.2024 (Annexure P- 23), whereby, the Deputy Commissioner, Panipat (respondent no.3), CWP-36319-2025 -2- granted NOC for setting up of a petrol station at Plot No.O-32, Old Industrial Area, Panipat, which is abutting the road maintained by the Haryana State Industrial and Infrastructure Development Corporation,

(HSIIDC), has been put to challenge. The petitioner has also challenged the order dated 11.10.2024 (Annexure P-31), passed by respondent no.3, in pursuance of a direction issued by this Court vide order dated

12.02.2024 (Annexure P-18).

#2. The petitioner is a proprietorship firm, having its petrol pump situated near the petrol pump installed by respondent no.8.

#3. The main grievance of the petitioner, which is operating a petrol station at O-31, Industrial Area, Panipat, is that, a site for setting up of another petrol station has been allotted, which is at less than 300 meter distance, and the same is against the instructions/notification issued by the Haryana Public Works Department (PWD) (Annexure-9), as well as, the policy/instructions dated 04.09.2020 (Annexure P-54), as issued by the Principal Secretary to Government of Haryana, Town and Country Planning Department, for establishment of Retail Outlets CNG/PNG stations and petrol pumps.

#4. Learned senior counsel for the petitioner, at the outset, draws attention of this Court towards the notification issued by the Haryana Public Works Department on 27.10.2020 (Annexure P-9), to submit that the restrictions of maintaining 300 meter distance between two petrol stations, has been floated, and the Deputy Commissioner (respondent no.3), who was duty bound to ensure the compliance of such instructions, CWP-36319-2025 -3- as contained in notification (supra), has failed to take into consideration the same.

#5. He further submits that there are specific instructions in the aforesaid notification dated 27.10.2020, which makes it mandatory that the distance of 300 meters has to be maintained between two petrol pumps.

#6. Next argument, raised by him is, that in case, this Court comes to a conclusion that the notification (supra), is not applicable to the instant matter, as the site is situated within the HSIIDC area, then the guidelines issued by the NHAI, PWD and the Department of Town and Country Planning, would be a guiding principle for the Deputy Commissioner concerned, while granting NOC, and in order to examine the safety of the public.

#7. He further placed reliance upon a judgment rendered by the Hon'ble Supreme Court in “Indian Oil Corporation Ltd. vs. Arti Devi Dangi”, 2016 (15) SCC 480, to submit that in absence of any specific guidelines, the general guidelines of IRC would prevail.

#9. No other argument was raised on behalf of the petitioner. Per contra, Mr. Baldevraj Mahajan, Sr. Advocate, learned counsel for respondents no. 5 to 7, put a fierce defence, and raised following objections, to the submissions, as made on behalf of the petitioner. CWP-36319-2025 -4-

#10. He submits that the notification issued by the Haryana Public Works Department (PWD) on 27.10.2020 (Annexure P-9), is not applicable at all, to the site, where the said petrol pump has now been established by respondent no.8. It is also contended that the guidelines contained in the notification (supra), governs setting up of roadside fuel stations in the State of Haryana, on State Highways (SHs), Major District Roads (MDRs), Other District Roads (ODRs), and Village Roads, whereas, in the instant case, however, the petrol pump is installed on the land allotted by the HSIIDC, and the Change of Land Use (CLU), from that of industrial to commercial use, was granted in favour of respondent no.8 way back in the year 2009. The petrol pump is abutting to the road which is maintained by HSIIDC, and Haryana Public Works Department has never issued any notification declaring the road in question as 'Other District Road' (ODR).

#11. He next submits that even the second notification dated

04.09.2020 (Annexure P-54), issued by the Town and Country Planning Department, is equally inapplicable. He draws the attention of this Court towards the applicability clause of the said notification and submits that it is applicable only where the authority concerned has to allot land for a Retail Outlet. In the instant case, it is not a case of allotment of land; rather, the land had been allotted much prior to the date when the policy came into existence.

#12. Finally, he submits that at the time when the NOC was granted, and the petrol pump was installed, there was no legal CWP-36319-2025 -5- impediment, or any notification, or guidelines issued by any competent authority prohibiting installation of a petrol pump at the site in question.

#13. It is also contended that there is no prayer whatsoever, in the instant petition for framing guidelines for installation of Retail Outlets, for the areas which are not covered under the notification issued by the State Government.

#14. This Court has heard the rival submissions as made on behalf of the parties concerned, and has perused the entire case file.

#15. The entire argument, as made by learned senior counsels for the parties concerned, hinges upon applicability of aforesaid two notification/policies/instructions (dated 27.10.2020 and dated

04.09.2020). Therefore, the first question which arises for consideration is, whether the said notifications/instructions are applicable to the facts of the present case. If the answer is in the affirmative, the second question would be, whether the restriction of maintaining a distance of 300 metres would operate as a bar to respondent No.8 establishing the Retail Outlet.

#16. In order to answer the first query, lets have a glimpse upon the notification dated 27.10.2020, as issued by the Haryana Public Works Department (PWD). The first paragraph of the notification assumes relevance, at this stage, which is extracted hereinafter:- “No. 01/08/2020-B&R(W). In supersession of the earlier notification dated 13.10.2020 issued vide No. 406-RII- 20/Tech/Roads/21155/Guidelines for access permission /152824- 152878/2020 by the Engineer-in-Chief PWD (B&R), the Governor of Haryana is pleased to issue new guidelines regarding setting up of the Roadside Fuel Stations in the State of Haryana on State Highways (SHs), Major District Roads (MDRs), Other District Roads (ODRs) & Village Road (VRs). Therefore, the following Norms/Guidelines are 575-RII-19, CWP-36319-2025 -6- hereby notified for issuance of NOC by the concerned Executive Engineer for access, location & layout of Roadside Fuel Stations in the State of Haryana.” A perusal of the above makes it vividly clear that the said

#17. notification is made applicable to the setting up of Roadside Fuel Stations in the State of Haryana, on State Highways (SHs), Major District Roads (MDRs), Other District Roads (ODRs) and Village Road (VRs). In the instant case, it is not under dispute that the petrol pump operated by respondent no.8, is not abutting to any of the aforesaid mentioned roadsides. Rather, it is abutting a road which is carved out, and maintained by the Industrial Department, which is now HSIIDC.

#18. During the course of arguments, this Court has put a specific query to learned senior counsel for the petitioner, as to whether, he is armed with any notification to substantiate that the site in question is abutting to any notified roadsides, to which he answered in negative. Therefore, this Court has no hesitation to conclude that the notification dated 27.10.2020, is not applicable at all, to the facts of the instant matter, and, consequently, does not create any legal impediment to the grant of NOC for installation of the Retail Outlet.

#19. Now coming to the policy/instructions dated 04.09.2020 (Annexure P-54), issued by the Principal Secretary to Government of Haryana, Town and Country Planning Department. The said policy carries a specific applicability clause, and according to clause 1(c) thereof, the policy shall be applicable to submission of all applications received after the date 04.09.2020 for grant of CLU permission for establishment of CWP-36319-2025 -7- Retail Outlet for intended purpose only. Clause 1(b) of the policy (supra) further provides that policy shall apply to the allotment of land of Government entities by sale or lease through the mechanism of e-auction for the sole purpose of setting up of Retail Outlets. The relevant clause is extracted hereinafter:- “1. Applicability: (a) This policy shall be applicable to all Government entities in the State of Haryana and shall supersede all existing policies of Government entities in so far as that relate to allotment of land for retail outlets. (b) This policy shall be applicable to the allotment of land of Government entities by sale or lease through the mechanism of e- auction for the sole purpose of setting up of Retail Outlets. (c) The policy shall apply to submission of all applications received after the date 04.09.2020 for grant of CLU permission for establishment of Retail Outlet for the intended purpose only.” On a bare perusal of the above, makes it abundantly clear

#20. that it does not create any legal embargo, requiring the authority to ensure compliance of policy (supra), for the purpose of granting NOC to respondent no.8, for the reason: that the site in question was allotted to the predecessor-in-interest of respondent no.8, way back in 1949; the Change of Land Use (CLU) for conversion of land from that of industrial to commercial use, was granted way back in 2009. Therefore, it is neither the case of allotment of land after the policy (supra), came into operation, nor the case of grant of CLU permission after 04.09.2020.

#21. In view of the above, the policy/notification dated

04.09.2020, is also not applicable in the instant case.

#22. While summing up the above discussion, this Court is of the considered view that neither the notification dated 27.10.2020 (Annexure P-9) issued by the Haryana Public Works Department, nor the CWP-36319-2025 -8- policy/instructions dated 04.09.2020 (Annexure P-54), as issued by the Town and Country Planning Department are applicable to the facts of the present case. The petrol pump site in question neither abuts any road covered under the notification dated 27.10.2020 nor does the case fall within the ambit of the policy dated 04.09.2020, as the allotment of land, as well as the grant of Change of Land Use (CLU), had taken place much prior to the coming into force of the said policy. Consequently, the restriction regarding maintenance of a minimum distance of 300 metres between two Retail Outlets, as contemplated under the aforesaid notification/policy, cannot be pressed by the petitioner. Accordingly, both the questions framed hereinabove are answered against the petitioner and in favour of the respondents.

#23. Now the next question arises for consideration, as to whether, in absence of any notification/instructions/statutory guidelines, the NOC granted to respondent no.8, can be struck down by taking guidance from the notification issued by NHAI and Haryana Public Works Department. The answer, in the considered opinion of this Court, has to be in negative. The authority concerned is required to examine the request for grant of NOC on the basis of applicable statutory provisions and enforceable notifications. The competent authority has duly examined the matter on the touchstone of the applicable legal provisions, and only thereafter, had granted the NOC. CWP-36319-2025 -9-

#24. The reliance placed upon by learned senior counsel for the petitioner, on the judgment rendered in Indian Oil Corporation's case (supra), is also mis-placed. A reading of the said judgment does not surface that the Hon'ble Supreme Court directed that, in the absence of any specific statutory guideline, the IRC guidelines must necessarily be followed.

#25. In view of the above discussion, this Court does not find any merit in the instant petition, which is consequently, dismissed.

#26. All pending application(s), if any, also stand disposed of accordingly. July 03, 2026 dharamvir (KULDEEP TIWARI) JUDGE Whether speaking/reasoned. Whether Reportable. : : Yes/No Yes/No