The Allahabad High Court has ruled that state authorities cannot indefinitely stall commercial approvals, holding that an unexplained two-year delay by district officials in issuing a no objection certificate for a petrol pump constituted arbitrariness and legal malice.
A division bench comprising Justice J J Munir and Justice Indrajeet Shukla stated on July 30 that administrative inaction obstructing a citizen’s right to engage in lawful business violates the constitutional guarantees under Articles 14, 19(1)(g), and 21. The court observed that unjustified delays in permitting legitimate trade erode the fundamental right to live with dignity and fail to withstand scrutiny under the framework of constitutional rights.
Two-Year Administrative Stalls
The ruling stems from a writ petition filed by Rakesh Kumar Gupta, who sought court intervention after his application for a retail petrol pump in Fatehpur district remained pending for over two years. Gupta had secured a Letter of Intent from Reliance BP Mobility Limited on March 29, 2024, and subsequently obtained all mandatory statutory clearances except the district magistrate’s no objection certificate (NOC).
Although the oil company formally applied for the certificate on July 1, 2024, the district administration took no action despite repeated reminders and updated state policies aimed at streamlining approval procedures, including government orders issued on January 30, 2023, and December 18, 2025.
The high court intervened on June 22, 2026, demanding an explanation for the prolonged delay. Following an unsatisfactory initial response, the bench ordered the District Magistrate of Fatehpur to appear in person on June 24. The administration subsequently issued the NOC through a personal affidavit filed on June 25.
State Defense Rejected
During the proceedings, state counsel attributed the delay to a late police verification report and stated that disciplinary action, in the form of a censure entry, had been taken against a clerk.
The bench rejected the state’s explanation, noting that successive district magistrates had failed to process the file and that penalizing a subordinate clerk while senior officers avoided accountability was unacceptable. The court stated that legal malice does not require proof of personal ill will, but exists whenever a public authority acts without lawful justification or neglects statutory obligations.
Final Directives
With the clearance granted during the course of the litigation, the court concluded that no further issues remained for determination. The bench directed Reliance BP Mobility Limited to proceed expeditiously with the setup of the petrol pump under the March 2024 agreement. Disposing of the petition without costs, the judges expressed expectation that the district administration will handle future matters affecting citizens’ rights in a prompt and accountable manner.
