Legal provisions involved: Petroleum Rules, 2002 – Rule 152(1)(iii); Article 226 and 12 of the Constitution of India

Judgement by: Kerala High Court

Judge/Bench: Justice M.A. Abdul Hakhim

Facts

The petitioners owned the property and had given it on lease to the respondent through a registered lease deed dated 21 January 2004 for 20 years. The lease came to an end on 31 January 2024. The respondent was running a petroleum retail outlet on the land as a dealer of an oil marketing company and held a valid explosive licence. 

After the lease expired, the petitioners approached the High Court seeking eviction of the respondent and cancellation of the explosive licence.

Key legal provisions

Petroleum Rules, 2002 – Rule 152(1)(iii)

Article 226 of the Constitution of India

Article 12 of the Constitution of India

Issues raised

Whether the explosive licence continues after expiry of the lease and whether a hearing is required before cancelling such licence?

Arguments of the case

The petitioners argued that once the lease ended, the licence could not survive. The respondents claimed that cancellation required a formal order and opportunity of hearing.

Judgement

The court held that when the licensee loses the right over the land, the licence stands cancelled automatically by law. No separate order or hearing is required. The court refused to order eviction in the writ petition but directed cancellation of the explosive licence.

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