Section 23 of The Petroleum and Natural Gas Regulatory Board Act, 2006
If the Board, on an application of an affected party or on its own motion, is satisfied that the entity in favour of which authorisation has been granted under section 19 has failed to comply with any conditions of authorisation, it may, after giving an opportunity to such entity of being heard, either suspend the authorisation for such period as the Board may think fit or cancel the authorisation: Provided that where the Board is of the opinion that an authorised entity persistently acts in a manner prejudicial to the interests of consumers, it may take action for the suspension of the authorisation immediately subject to the opportunity of hearing being given subsequently, after which action so taken may be confirmed or revoked.
Summary
- The Board can suspend or cancel an authorisation if a company fails to follow the conditions of its approval.
- The Board can take this action on its own initiative or if an affected party submits an application.
- Normally, the Board must give the company a chance to be heard before suspending or cancelling the authorisation.
- If a company persistently acts against the interests of consumers, the Board can suspend the authorisation immediately without a prior hearing.
- When an immediate suspension happens, the Board will give the company a hearing afterwards and then confirm or revoke the suspension.
Practical examples
FAQ
1. Can the Board take away a company's permission to run a pipeline?
Yes, the Board can suspend or cancel the authorisation if the company fails to comply with the conditions.
2. Does the company get a chance to defend itself?
Yes, the Board must give the entity an opportunity of being heard.
3. Can the Board shut down a pipeline immediately without a hearing?
Yes, but only if the entity persistently acts in a manner prejudicial to consumer interests, and a hearing must be given afterwards.
Test yourself
Q1.Under Section 23 of The Petroleum and Natural Gas Regulatory Board Act, 2006, how is this suspension provision connected to the process in Section 19?
Q2.Under Section 23 of The Petroleum and Natural Gas Regulatory Board Act, 2006, what triggers the Board's power to suspend or cancel an authorisation under normal circumstances?
Q3.Under Section 23 of The Petroleum and Natural Gas Regulatory Board Act, 2006, when is the Board permitted to suspend an authorisation immediately, before giving an opportunity of hearing?
Q4.Under Section 23 of The Petroleum and Natural Gas Regulatory Board Act, 2006, who can initiate the process for suspending or cancelling an authorisation?