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1996 Supreme(SC) 2064

B.P.JEEVAN REDDY, K.S.PARIPOORNAN
State Of Bihar – Appellant
Versus
Bihar Distillery LTD. – Respondent


JUDGMENT

B.P. Jeevan Reddy, J.-Leave granted.

2. The distribution and sale of country liquor in the State of Bihar is regulated by the Bihar Excise Act, 1951 and the rules made thereunder. It was a two-tier system. The wholesale dealers (contractors) were lifting the liquor from the distilleries and supplying it to the retailers. Both the wholesale dealers and retailers were selected on the basis of auction/tender process. The price at which the wholesaler supplied the country liquor from the warehouse to the retailer was fixed by the Government either statutorily or on the basis of negotiations between the wholesalers (contractors) and the Government. The price so determined was known as the cost price of country liquor which was payable by the retailer at the time of taking delivery from the concerned warehouse. The maintenance of warehouse was the responsibility of the wholesale supplier (Contractor).

3. In the year 1989, a batch of writ petitions, C.W.J.C. No.4722 of 1989 and others, were filed in the Patna High Court. The High Court made interim orders in those writ petitions directing that till the contract is settled and until further orders from the Court, the supply of countr

































































































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