W.P.(C) No. 14439 of 2020 & W.P.(C) No. 18058 of 2020

**WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE T.R.RAVI** **WEDNESDAY, THE 30[TH] DAY OF JUNE 2021 / 9TH ASHADHA, 1943** ## **WP(C) NO. 14439 OF 2020** ## **PETITIONER:** V.T.MURALIDHARAN PILLAI AGED 59 YEARS S/O THANKAPPAN PILLAI, ASWATHY NILAYAM, MANGARAM, KONNI P.O.P ATHANAMTHITTA DISTRICT, PIN-689 647. BY ADV THOMAS P.KURUVILLA ## **RESPONDENTS:** 1 M/S HINDUSTAN PETROLEUM CORPORATION LIMITED A COMPANY INCORPORATED UNDER COMPANIES ACT 1956, HAVING ITS REGISTERED OFFICE AT 17, JAMSHEDI TATA ROAD, MUMBAI-400 020, REPRESENTED BY ITS CHIEF REGIONAL MANAGER 2 THE CHIEF REGIONAL MANAGER (RETAIL) M/S HINDUSTAN PETROLEUM CORPORATION LIMTED, A COMPANY INCORPORATED UNDER COMPANIES ACT 1956, REGIONAL OFFICE AT TATA ROAD, ERNAKULAM, COCHIN-682 018. 3 THE SECRETARY, KONNI GRAMA PANCHAYAT, KONNI P.O.PIN-689 691. 4 THE DEPUTY DIRECTOR OF EXPLOSIVES, PETROLEUM AND EXPLOSIVES SAFETY ORGANIZATION (PESO), KENDRIYA BHAVAN, BLOCK-C2, CGO COMPLEX, KAKKANAD, ERNAKULAM-682 037. **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 2 5 MRS. LIJU SAJIKUMAR, W/O A.K.SAJIKUMAR, ANJANIYIL, MANIMALA P.O.KOTTAYAM DISTRICT, PIN-689 647. BY ADVS. R1 & R2 BY SRI.M.GOPIKRISHNAN NAMBIAR SRI.K.JOHN MATHAI SRI.JOSON MANAVALAN SRI.KURYAN THOMAS SRI.PAULOSE C. ABRAHAM SRI.RAJA KANNAN SHRI.DOMINIC ANTONY R3 BY SRI.SUNIL JACOB JOSE, SC, KONNI GRAMA PANCHAYAT R5 BY SRI.K.R.SUNIL R4 BY SRI P.VIJAYAKUMAR, ASGI SMT. RASHMI.K.M,GOVT.PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.06.2021, ALONG WITH WP(C).18058/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 3 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE T.R.RAVI** ## **WEDNESDAY, THE 30[TH] DAY OF JUNE 2021 / 9TH ASHADHA, 1943** ## **WP(C) NO. 18058 OF 2020** ## **PETITIONER:** LEJU SAJI KUMAR AGED 43 YEARS W/O.A.K. SAJI KUMAR, PROPRIETRIX “JWALA FULES”, MAROORPALAM, KONNI, PATHANAMTHITTA. BY ADV SRI K.R.SUNIL ## **RESPONDENTS:** 1 THE KONNI GRAMA PANCHAYATH KONNI, REPRESENTED BY ITS SECRETARY, PIN - 689681. 2 THE SECRETARY KONNI GRAMA PANCHAYATH, KONNI, PIN - 689681 3 THE CHIEF REGIONAL MANAGER(RETAIL) M/S. HINDUSTAN PETROLEUM CORPORATION LTD, A COMPANY INCORPORATED UNDER COMPANIES ACT, 1956, REGIONAL OFFICE AT TATA ROAD, ERNAKULAM, COCHIN, PIN - 682018. **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 4 4 V.T. MURALEEDHARAN PILLAI AGED 59 YEARS S/O. THANKAPPAN PILLAI, ASWATHY NILAYAM, MANGARAM, KONNI, PATHANAMTHITTA, PIN - 689691. BY ADVS. R1 & R2 BY SRI.SUNIL JACOB JOSE, SC, KONNI GRAMA PANCHAYAT SHRI.V.K.SUNIL, SC, KONNI GRAMA PANCHAYAT R3 BY SRI.M.GOPIKRISHNAN NAMBIAR SRI.JOSON MANAVALAN SRI.PAULOSE C. ABRAHAM SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.AJAY BEN JOSE R4 BY SRI.S.SREEKUMAR (SR.) SRI.P.MARTIN JOSE SRI.P.PRIJITH SRI.THOMAS P.KURUVILLA SRI.MANJUNATH MENON SRI.R.GITHESH SMT.HANI P.NAIR SHRI.HARIKRISHNAN S. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.06.2021, ALONG WITH WP(C).14439/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 5 ## **T.R.RAVI, J.** ## **----------------------------------WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** **-----------------------------------Dated this the 30[th] day of June, 2021** ## **JUDGMENT** Heard Sri Thomas P. Kuruvilla on behalf of the petitioner in W.P. (C)No.14439/2020 (4[th] respondent in W.P.(C)No.18058 of 2020), Sri M.Gopikrishnan Nambiar for respondents 1 and 2 in W.P. (C)No.14439/2020 (3[rd] respondent in W.P.(C)No.18058/2020), Sri K.R.Sunil for the 5[th] respondent in W.P.(C)No.14439/2020 (petitioner in W.P.(C)No.18058/2020), Sri Sunil Jacob Jose for the 3[rd] respondent in W.P.(C)No.14439/2020 (respondents 1 and 2 in W.P. (C)No.18058/ 2020) and Sri Vijayakumar, ASGI for the 4[th] respondent in W.P.(C)No.14439 of 2020. 2. The prayers in these writ petitions are intrinsically connected and the parties to the writ petitions are also mostly the same persons. The writ petitions are hence heard together and disposed of by a common judgment. The parties are referred to as per their status in **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 6 W.P.(C)No.14439 of 2020, which is treated as the main case. 3. In W.P.(C)No.14439 of 2020, the 1[st] respondent (hereinafter referred to as HPCL) had taken 27.5 cents of land belonging to the petitioner on lease for a period of 20 years with effect from 01.08.1999 to 31.07.2019, as per registered lease deed No.2356 of 1999 of Konni Sub Registrar's office. The lease deed has been produced as Exhibit P1. The lease deed permitted the lessee to erect permanent and temporary structures for conducting a petroleum outlet. Clause 2(c) of the lease agreement provided for a further extension of the lease, for a period of 10 years, on mutual agreement. It is admitted that the lease period expired on 31.07.2019. The petitioner had caused to issue a notice to HPCL on 11.10.2018, through his Advocate, whereby the HPCL was informed that the lease will stand terminated after the expiry of the period of lease, and, were requested to remove the structures installed in the property and to hand over vacant possession after one month from 31.07.2019. This was followed by another lawyer notice Exhibit P3 dated 09.08.2019, terminating the lease and calling upon HPCL to give vacant possession of the property after removing the structures. By Exhibit P5 letter, HPCL, relying on clause 2(c) of Exhibit P1, **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 7 informed the petitioner that they do not intend to vacate the premises. The petitioner thereupon filed O.S.No.1100 of 2019 before the Munsiff's Court, Ernakulam, the plaint in which has been produced as Exhibit P6. The 5[th] respondent, who is the licensee of HPCL is conducting the petroleum outlet in the name and style "Jwala Fuels". The petitioner states that, on enquiry he came to know that the 5[th] respondent does not have a valid trade licence from the 3[rd] respondent Panchayat, to conduct the petroleum outlet. The petitioner has submitted Exhibit P9 representation to the 3[rd] respondent requesting that no trade licence may be issued to the 5[th] respondent and if it has already been granted, the same may be revoked. The petitioner has also submitted Exhibit P11 representation dated 20.06.2020 to the 4[th] respondent, who is the licensing authority under the Petroleum Rules, requesting to revoke or cancel the licence issued to HPCL for conducting petroleum outlet in the property. 4. It is the contention of the petitioner that the Hon'ble Supreme Court has held that after the expiry of the period of lease, the possession of the lessee becomes illegal and he cannot continue the operation of the petroleum outlet. He also refers to Rule 153(1)(i) of **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 8 the Petroleum Rules, which provides that license granted, under the Rules will stand cancelled if the licensee has no right in the property. In the above circumstances, the writ petition has been filed praying for a declaration that the continuance of the petroleum outlet by the HPCL in the property of the petitioner, covered by Exhibit P1 lease is illegal and, for consequential directions to the respondents 3 and 4 to close down the petroleum outlet conducted by HPCL in the property. There is also a prayer for a direction to the respondents 3 and 4 to consider and pass orders on Exhibits P9 and P11, within a time limit fixed by this Court. 5. W.P.(C)No.18058 of 2020 has been filed by the 5[th] respondent in W.P(C)No. 14439 of 2020, praying to quash Exhibit P6 notice issued by the 1[st] respondent Panchayat through its Secretary who is the 2[nd] respondent in the writ petition, directing him to stop the operations of the petroleum outlet which, according to the Panchayat was being conducted without the necessary license, and to report compliance to the Panchayat. There is also a prayer for a direction to the 1[st] respondent Panchayat to consider Exhibit P3 application for renewal of the license for the period 2020–2021. The grievance the petitioner herein is that he has been allotted the petroleum outlet after **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 9 several years of litigation with the HPCL and he has only started operating the outlet, which is presently doing good business. It is his case that if the license issued to him is not renewed, he will be put to serious prejudice. The right of the petitioner in this Writ petition has necessarily to depend on the outcome of W.P.(C)No. 14439 of 2020. 6. When the case was taken up today, the Counsel on either side submitted that cases involving similar facts were considered by a learned Single Judge of this Court in W.P.(C)No.10213 of 2020 and connected cases and by judgment dated 22.12.2020, this Court had directed the Municipality which was the concerned Local SelfGovernment in those cases, to consider the application for renewal of license, subject to certain conditions. It is seen from the judgment that this Court had directed the Deputy Chief Controller of Explosives who is the Licensing Authority under the Petroleum Rules, to consider the application for renewal of license submitted by HPCL after adverting to the objection of the lesser, referable to Rule 152 of the Petroleum Rules and in the light of the judgment of the Hon'ble Supreme Court in **C.Albert Morris vs. K.Chandrasekharan and others** reported in **[(2006) 1 SCC 228]** . The decision that is to be taken by the **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 10 Municipality on the application for renewal of the license was made subject to the outcome of the decision taken by the licensing authority, on the application for renewal of license submitted by HPCL. I am in complete agreement with the reasoning adopted by the learned Single Judge in the above said decision and the consequential directions issued. 7. Since under Rule 152 of the Petroleum Rules, 2002, a license is liable to be suspended or cancelled if the licensee ceases to have any right to the site for storing petroleum, the 1[st] respondent cannot claim that they continue to have a license. Necessarily, the 1[st] respondent has to approach the licensing authority, the 4[th] respondent herein with a proper application for renewal of the license. The licensing authority will have to consider such application and pass orders thereon. It is only when there is a valid license in favour of the 1[st] respondent that they can entrust the conduct of the petroleum outlet on the basis of a license agreement to the 5[th] respondent. The 5[th] respondent will have to comply with the requirements of the different statutes and obtain trade license for conduct of the petroleum outlet from the 3[rd] respondent Panchayat. In the above circumstances, these **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 11 Writ petition are disposed of with the following directions. a) The 1[st] respondent (HPCL) shall make an application before the 4[th] respondent, for renewal of the license to store petroleum in the premises belonging to the petitioner, wherein the petroleum outlet was being conducted till 2019, within 2 weeks from the date of receipt of a copy of this judgment. b) On receipt of the application, the 4th respondent shall consider the application after notice to the petitioner herein and in the light of the judgment of the Hon'ble Supreme Court in **C.Albert Morris (supra)** , within a period of 4 weeks from the date of receipt of the application for renewal of license. c) The 5[th] respondent shall make necessary applications before the 3[rd] respondent Panchayat for renewal of the trade license to conduct the petroleum outlet. d) The 3[rd] respondent shall consider the application submitted by the 5[th] respondent and pass orders on the same, subject to the outcome of the decision of the **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 12 licensing authority under the Petroleum Rules pursuant to directions 1 and 2 above. e) If the 1[st] respondent is not able to get the license renewed by the licensing authority, the 1[st] respondent shall take necessary steps to ensure that the rights of the 5[th] respondent who has been allotted the retail outlet under the SC/ST quota for grant of license to run a petroleum outlet are safeguarded. The writ petitions are disposed of with the above directions. In the circumstances of the case, there will be no order as to costs. **Sd/-** **T.R.RAVI JUDGE** dsn **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 13 ## **APPENDIX OF WP(C) 14439/2020** ## PETITIONER ANNEXURE EXHIBIT P1 TRUE COPY OF LEASE AGREEMENT DATED 15.9.1999 EXECUTED FOR A PERIOD OF 20 YEARS W.E.F. 1.8.1999 TO 31.7.2019 FOR CONDUCTING PETROLEUM OUTLET BY RESPONDENTS 1 AND 2 EXHIBIT P2 TRUE COPY OF LAWYER NOTICE DATED 11.10.2018 ISSUED BY THE PETITIONER TO THE RESPONDENTS 1 AND 2 TERMINATING THE LEASE AFTER THE EXPIRY OF THE PERIOD AND DEMANDING VACANT POSSESSION EXHIBIT P2 (A) TRUE COPY OF POSTAL RECEIPT FOR SENDING EXT.P2 EXHIBIT P3 TRUE COPY OF LAWYER NOTICE DATED 9.8.2019 ISSUED BY THE PETITIONER TO THE RESPONDENTS 1 AND 2 TERMINATING THE LEASE AND DEMANDING VACANT POSSESSION EXHIBIT P3 (A) TRUE COPY OF ACKNOWLEDGMENT ACKNOWLEDGING THE RECEIPT OF EXHIBIT P3 BY RESPONDENT NO 1 EXHIBIT P3 (B) TRUE COPY ACKNOWLEDGEMENT ACKNOWLEDGING THE RECEIPT OF EXHIBIT P3 BY RESPONDENT NO 2 EXHIBIT P4 TRUE COPY OF REPRESENTATION DATED 19.11.2019 SUBMITTED BY THE PETITIONER TO THE HON'BLE MINISTER OF PETROLEUM AND NATURAL GAS EXHIBIT P5 TRUE COPY OF LETTER DATED 24.12.2019 ISSUED BY THE 2ND RESPONDENT INFORMING THE PETITIONER THAT IT HAS NO INTENTION TO VACATE THE PREMISES AND RELIED UPON CLAUSE 2 (C) OF EXHIBIT P1 **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 14 - EXHIBIT P6 TRUE COPY OF SUIT AS OS NO 1100 OF 2019 FILED BEFORE THE MUNSIFFS COURT, ERNAKULAM - EXHIBIT P7 TRUE COPY OF APPLICATION DATED 20.6.2020 SUBMITTED UNDER THE RIGHT TO INFORMATION ACT SUBMITTED BY THE PETITIONER BEFORE THE INFORMATION OFFICER AND 3RD RESPONDENT - EXHIBIT P8 TRUE COPY OF REPLY TO EXHIBIT P7 DATED 2.7.2020 ISSUED BY THE INFORMATION OFFICER AND 3RD RESPONDENT - EXHIBIT P9 TRUE COPY OF REPRESENTATION DATED 20.6.2020 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT - EXHIBIT P10 TRUE COPY OF APPLICATION DATED 20.6.2020 SUBMITTED BY THE PETITIONER UNDER THE RIGHT TO INFORMATION ACT TO 4TH RESPONDENT AND INFORMATION OFFICER - EXHIBIT P11 TRUE COPY OF REPRESENTATION DATED 20.6.2020 SUBMITTED BY THE PETITIONER BEFORE THE 4TH RESPONDENT - EXHIBIT R3(1): PHOTOCOPY OF THE STOP MEMO ISSUED ON THE 5TH RESPONDENT DATED 22/07/2020. - EXHIBIT R3(2): PHOTOCOPY OF THE LETTER A6-4748/2020 DATED 28/07/2020 OF THE 3RD RESPONDENT TO THE 5TH RESPONDENT. EXHIBIT R3(3): PHOTOCOPY OF THE LETTER NO.A6/4802/2020 DATED 29/07/2020 OF THE RESPONDENT. EXHIBIT R1(a) TRUE COPY OF THE LETTER DATED 15.07.2019 ISSUED BY THE 2ND RESPONDENT. **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 15 ## **APPENDIX OF WP(C) 18058/2020** |PETITIONER'S EXTS:|| |---|---| |EXHIBIT P1|THE TRUE COPY OF THE ORDER DATED 05.06.2018| ||IN WA NO.837/2018.| |EXHIBIT P2|THE TRUE COPY OF THE AGREEMENT DATED| ||01.08.2019.| |EXHIBIT P3|THE TRUE COPY OF THE APPLICATION DATED| ||22.07.2020.| |EXHIBIT P4|THE TRUE COPY OF THE LETTER DATED 22.07.2020| ||ISSUED BY THE 1ST RESPONDENT TO THE| ||PETITIONER.| |EXHIBIT P5|THE TRUE COPY OF THE REPLY DATED 25.07.2020| ||SUBMITTED BY THE PETITIONER TO THE 1ST| ||RESPONDENT.| |EXHIBIT P6|THE TRUE COPY OF THE LETTER DATED 20.08.2020| ||SENT BY THE 1ST RESPONDENT TO THE| ||PETITIONER.| |EXHIBIT P7|THE TRUE COPY OF THE EXPLANATION DATED| ||21.08.2020 SUBMITTED BY THE PETITIONER TO| ||THE 1ST RESPONDENT PETITIONER.| |EXHIBIT P8|THE TRUE COPY OF THE LICENSE ISSUED BY THE| ||1ST RESPONDENT FOR THE PERIOD 2018-19| |EXHIBIT.R4(A) :|TRUE COPY OF LEASE AGREEMENT DATED15-09-| ||1999 EXECUTED FOR A PERIOD OF 20 YEARS| ||W.E.F. 01-08-1999 TO 31-07-2019 FOR| ||CONDUCTING PETROLEUM OUTLET BY HPCL| |EXHIBIT.R4(B):|TRUE COPY OF LAWYER NOTICE DATED 11-10-2018| ||ISSUED BY THE RESPONDENT NO.4 TO THE HPCL| ||TERMINATING THE LEASE AFTER THE EXPIRY OF| **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 16 THE PERIOD AND DEMANDING VACANT POSSESSION EXHIBIT.R4(C) TRUE COPY OF POSTAL RECEIPT FOR SENDING EXHIBIT. R4(B) EXHIBIT.R4(D) TRUE COPY OF LAWYER NOTICE DATED 09-08-2019 ISSUED BY RESPONDENT NO.4 TO HPCL AND 3RD RESPONDENT TERMINATING THE lEASE AND DEMANDING VACANT POSSESSION EXHIBIT.R4(E) : TRUE COPY OF ACKNOWLEDGMENT ACKNOWLEDGING THE RECEIPT OF EXHIBIT.R4(D) BY HPCL EXHIBIT.R4(F) : TRUE COPY OF ACKNOWLEDGMENT ACKNOWLEDGING THE RECEIPT OF EXHIBIT.R4(C) BY RESPONDENT NO.3 EXHIBIT.R4(G): TRUE COPY OF REPRESENTATION DATED 19-11-2019 SUBMITTED BY RESPONDENT NOA TO THE HON'BLE MINISTER OF PETROLEUM AND NATURAL GAS EXHIBIT.R4(H): TRUE COPY OF LETTER DATED 24-12-2019 ISSUED BY THE 3RA RESPONDENT INFORMING RESPONDENT NO.4 THAT IT HAS NO INTENTION TO VACATE THE PREMISES AND RELIED UPON CLAUSE 02(C) OF EXHIBIT.R4(A) EXHIBIT.R4(I): TRUE COPY OF SUIT AS 0.S.NO.1100 OF 2019 FILED BEFORE THE MUNSIFFS COURT, ERNAKULAM EXHIBIT.R4(J): TRUE COPY. OF APPLICATION DATED 20-06-2020 SUBMITTED UNDER THE RIGHT TO INFORMATION ACT BY RESPONDENT NO.4 BEFORE THE 2" RESPONDENT /INFORMATION OFFICER EXHIBIT.R4(K): TRUE COPY OF REPLY TO EXHIBIT.R4(J) DATED 02- 38 07-2020 ISSUED BY THE 2ND RESPONDENT /INFORMATION OFFICER EXHIBIT.:R4(L) TRUE COPY OF REPRESENTATION DATED 20-06-2020 SUBMITTED BY RESPONDENT NO.4 BEFORE THE 2ND RESPONDENT **WP(C) NO. 14439 OF 2020 & WP(C) NO. 18058 OF 2020** 17 EXHIBLT.R4(M): TRUE COPY OF APPLICATION DATED 20-06-2020 SUBMITTED BY RESPONDENT NO.4 UNDER THE RIGHT TO INFORMATION ACT TO DEPUTY CONTROLLER OF EXPLOSIVES/ INFORMATION OFFICER EXHIBIT.R4(N) : TRUE COPY OF REPRESENTATION DATED 20-06-2020 SUBMITTED BY RESPONDENT NO.4 BEFORE THE DEPUTY CONTROLLER OF EXPLOSIVES