Bombay High Court Quashes Cancellation of No Objection Certificate for Firecracker Shop Under Explosives Act, 1884 — Violation of Natural Justice. District Magistrate and Divisional Commissioner failed to provide opportunity of hearing before cancelling NOC granted in 1997.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Gopal Agrawal, had been operating firecracker shops/godowns on Survey No.86 at Mouza Shirajgaon, Khamgaon, Buldana since 1997 pursuant to a no objection certificate (NOC) granted by the Additional District Magistrate on 17.03.1997 under the Explosives Act, 1884. On 10.10.2018, respondent no.3, Narendra Joshi, filed an application before the District Magistrate alleging that the petitioner was carrying on business in breach of conditions. Without issuing any show cause notice or affording an opportunity of hearing to the petitioner, the District Magistrate and Collector, Buldana passed an order on 18.11.2020 cancelling the NOC. The petitioner's appeal before the Divisional Commissioner, Amravati was dismissed on 07.06.2021, and the Commissioner further directed action under Sections 44 and 45 of the Maharashtra Land Revenue Code, 1966 and the Maharashtra Land Revenue (Conversion of use of Land and Non-Agricultural Assessment) Rules, 1969. The petitioner challenged both orders by way of writ petition. The High Court observed that the orders were passed in gross violation of principles of natural justice as no opportunity of hearing was given to the petitioner before cancellation. The court set aside both orders and remitted the matter back to the District Magistrate for fresh consideration after affording an opportunity of hearing to all concerned parties. The court also directed that the petitioner be allowed to continue his business in the meantime, subject to compliance with all statutory requirements.

Headnote

A) Administrative Law - Natural Justice - Cancellation of No Objection Certificate - Opportunity of Hearing - The District Magistrate cancelled the NOC granted to the petitioner for storage and sale of explosives without issuing any show cause notice or affording hearing. The Divisional Commissioner confirmed the cancellation without hearing the petitioner. Held that such orders are in gross violation of principles of natural justice and cannot be sustained. (Paras 2-6)

B) Explosives Act, 1884 - No Objection Certificate - Cancellation - Procedure - The Act does not exclude application of natural justice. Any cancellation of a NOC must be preceded by a notice and opportunity of hearing to the affected party. (Paras 2-6)

C) Maharashtra Land Revenue Code, 1966 - Sections 44 and 45 - Conversion of Land Use - The Divisional Commissioner directed action under these provisions without hearing the petitioner. Held that such direction is also vitiated for want of natural justice. (Paras 2-6)

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Issue of Consideration

Whether the orders cancelling the no objection certificate and confirming such cancellation are sustainable in law when passed without affording an opportunity of hearing to the petitioner.

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Final Decision

The High Court allowed the writ petition, set aside the orders dated 18.11.2020 and 07.06.2021, and remitted the matter to the District Magistrate for fresh consideration after affording an opportunity of hearing to all concerned parties. The petitioner was permitted to continue business in the meantime subject to compliance with statutory requirements.

Law Points

  • Natural justice
  • opportunity of hearing
  • cancellation of no objection certificate
  • Explosives Act 1884
  • Maharashtra Land Revenue Code 1966
  • Maharashtra Land Revenue (Conversion of use of Land and Non-Agricultural Assessment) Rules 1969
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Case Details

2022 LawText (BOM) (01) 103

Writ Petition No. 2100/2021

2022-01-28

A. S. Chandurkar, Smt. M.S. Jawalkar

Mrs. Renuka S. Sirpurkar (for petitioner), Ms Nivedita P. Mehta (AGP for respondent 1-2), Shri Anil S. Mardikar with Shri S.G. Joshi (for respondent 3)

Gopal S/o Babulal Agrawal

Divisional Commissioner, Amravati; District Collector, Buldana; Narendra S/o Babulal Joshi; Controller of Explosives, West Circle, PESO

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Nature of Litigation

Writ petition challenging cancellation of no objection certificate for storage and sale of explosives.

Remedy Sought

Petitioner sought quashing of orders dated 18.11.2020 and 07.06.2021 cancelling the NOC and confirming cancellation.

Filing Reason

Orders were passed without affording opportunity of hearing to the petitioner.

Previous Decisions

District Magistrate cancelled NOC on 18.11.2020; Divisional Commissioner confirmed cancellation on 07.06.2021.

Issues

Whether the cancellation of NOC without hearing the petitioner violates principles of natural justice. Whether the orders are sustainable in law.

Submissions/Arguments

Petitioner argued that no show cause notice or hearing was given before cancellation. Respondents argued that the orders were passed after considering the application of respondent no.3.

Ratio Decidendi

Cancellation of a no objection certificate under the Explosives Act, 1884 without affording an opportunity of hearing to the affected party is in gross violation of principles of natural justice and cannot be sustained.

Judgment Excerpts

The challenge raised in this writ petition is to the orders dated 18.11.2020 passed by the Collector and District Magistrate, Buldana and the order dated 07.06.2021 passed by the Divisional Commissioner, Amravati Division, Amravati in proceedings arising out of the Explosives Act, 1884. The District Magistrate has been pleased to cancel the no objection certificate dated 17.03.1997 that was granted to the petitioner for storage and sale of explosives. The orders have been passed without issuing any show cause notice to the petitioner and without affording any opportunity of hearing to the petitioner. The impugned orders are in gross violation of principles of natural justice and are liable to be set aside.

Procedural History

The petitioner obtained NOC on 17.03.1997. On 10.10.2018, respondent no.3 applied for cancellation. District Magistrate cancelled NOC on 18.11.2020 without hearing petitioner. Petitioner appealed to Divisional Commissioner who dismissed appeal on 07.06.2021 and directed action under MLRC. Petitioner filed writ petition on 28.01.2022.

Acts & Sections

  • Explosives Act, 1884:
  • Maharashtra Land Revenue Code, 1966: 44, 45
  • Maharashtra Land Revenue (Conversion of use of Land and Non-Agricultural Assessment) Rules, 1969:
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