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1996 Supreme(SC) 2064

1997(1) Supreme 121
SUPREME COURT OF INDIA
B.P. Jeevan Reddy and S.K. Paripoornan, JJ.
State of Bihar & Ors. etc. etc. -Appellants
versus
Bihar Distillery Ltd. etc. etc. -Respondents
Civil Appeal Nos. 15112-15 of 1996
(Arising out of S.L.P. (C) Nos. 11013-11016 of 1996)
Decided on 3-12-1996
Counsel for the Parties :
For the Appellants : S.B. Sanyal, Sr. Advocate and B.B. Singh, Advocate.
For the Respondents :Y.V. Giri, Sr. Advocate, Jyoti Saran, Praveen Kumar, Advocates.

IMPORTANT POINT
The approach of the Court, while examining the challenge to the constitutionality of an enactment, is to start with the presumption of constitutionality and any defects of drafting should be ironed out as part of the attempt to sustain the validity/constitutionality of the enactment.

Headnote:CONSTITUTIONAL VALIDITY-Approach of Court, while examining challenge to constitutionality of an enactment, is to start with presumption of constitutionality-Any defects of drafting should be ironed out as part of attempt to sustain validity-Unconstitutionality must be plainly and clearly established before an enactment is declared as void-Court must recognize fundamental nature and importance of legislative process and accord due regard and deference to it-Bihar Excise (Amendment and Validating) Act, 1995 is a valid legislation-It provides statutory basis and legislative imprematur to price fixation of country liquor-It also provides for recovery and deduction of maintenance charged of warehouses-Impugned judgment of High Court holding it as a purposeless piece of legislation by pointing out some drafting errors and some imperfection in language employed, not sustainable.

       Held : The approach of the Court, while examining the challenge to the constitutionality of an enactment, is to start with the presumption of constitutionality. The Court should try to sustain its validity to the extent possible. It should strike down the enactment only when it is not possible to sustain it. The Court should not approach the enactment with a view to pick holes or to search for defects of drafting, much less inexactitude of language employed. Indeed, any such defects of drafting should be ironed out as part of the attempt to sustain the validity/constitutionality of the enactment. After all, an Act made by the Legislature represents the will of the people and that cannot be lightly interfered with. The unconstitutionality must be plainly and clearly established before an enactment is declared as void. The same approach holds good while ascertaining the intent and purpose of an enactment or its scope and application. Now, the result of the impugned Judgment is that the Amending Act has become an exercise in futility-a purposeless piece of Legislation. And this result has been arrived at by pointing out some drafting errors and some imperfection in the language employed. If only the High Court had looked into the minutes of the meeting dated 15th December, 1989 and the two letters of the Commissioner aforementioned, it would have become clear that the Amending Act was doing no more than repeating contents of the said letters and placing the legislative imprimatur on them. As the impugned judgment itself suggests, part of the imperfection of language is perhaps attributable to translation from Hindi to English. Indeed, it is surprising that the Court has not even referred to the long preamble to the Act which clearly sets out the context and purpose of the said enactment. It was put in at such length only with a view to aid the interpretation of its provisions. It was not done without a purpose. To call the entire exercise a mere waste is, to say the least, most unwarranted besides being uncharitable. The Court must recognize the fundamental nature and importance of legislative process and accord due regard and deference to it, just as the Legislature and the Executive are expected to show due regard and deference to the Judiciary. It cannot also be forgotten that our constitution recognizes and gives effect to the concept of equality between the three wings of the State and the concept of checks and balances inherent in such scheme. (Para 13)

       Now coming to the validity of the Amending Act we are unable to see on what ground can its validity impeached. All that it does is to provide statutory basis and legislative imprematur to the price fixation done by the Commissioner and its break-up. It also provides for recovery and deduction of the 0.70 paise component on account of maintenance charges of warehouses. It can neither be suggested that the Bihar Legislature did not have the legislative competence to enact the said Amending Act nor can it be suggested that the Act violates any of the fundamental rights enshrined in para III. The general averment of Mr. Y.U. Giri that the Act is arbitrary is too vague to merit any acceptance, apart from the fact that an act of Legislature cannot be struck down merely saying it is arbitrary. (Para 16)

       

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 country liquor to the retailers shall be made directly by the State through its officers. In view of the said orders the Government was obliged to undertake the supply of country liquor from the warehouses maintained by it to the retailers. Even after the said batch of writ petitions were disposed of, the practice of the Government undertaking wholesale supply of country liquor to retailers continued for some time. This happened during the period commencing on July 1,1989, and ending with March 31, 1992. (These facts are taken from the preamble to the impugned Amendment Act being Bihar Act 9 of 1995.)

4. On December 15, 1989, a meeting was held between the Excise Officers of the State and the representatives of the distilleries to determine the cost price of country spirit/liquor. The representatives of the distilleries pleaded that since the cost of price of rectified spirit has been increased by the Government of India under Ethyl Alcohol (Price Control) Order, the cost price of country liquor should also be increased. They also pleaded that in view of the levy of sales tax at the rate of 16 on the rectified spirit earmarked for country spirit/liquor, with effect from December 1, 1989, and the rise in price index over the years, the cost price of country liquor should be enhanced. The Member, Board of Revenue who was representing the Government side at the said meeting agreed that in view of the enhancement of the price of ethyl alcohol and levy of sales tax on rectified spirit and other incidentals, the price of country-liquor deserves to be enhanced. The last para of the minutes of the meeting reads thus :

"As per discussion between representatives of the Distillers and Departmental representatives, the Member, Board of Revenue suggested certain components for proper consideration and fixation of cost price of spirit by following ways :.........."

On February 19, 1990 the Excise Commissioner, Bihar addressed a letter to all the distilleries fixing the cost price of country liquor. Having regard to the crucial relevance of this letter it would be appropriate to extract the letter in full.

"Patna, dated 19th February, 1990

Sub : Meeting between Excise Officers and representatives of Distilleries on 15.12.1989 presided by Member, Board of Revenue : regarding refixation of cost price of country spirit/liquor.

Sir,

Your attention is drawn towards the subject noted above, and to state that the Government has taken a decision to fix the cost price of rectified spirit to be supplied as country spirit/liquor from the country spirit warehouses with immediate effect @ Rs. 3.42 (Rupees three and paise forty-two only) for L.P. Litre by following components :-

(i) Cost of spirit Rs. 1.72 per L.P.L.

(ii) Transport/Working
























































































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