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2003 Supreme(AP) 212

Andhra Pradesh High Court
Judges : V.V.S.RAO
B.Muralidhar - Appellant
Versus
Superintendent Of Prohibition and Excise Khammam, Khammam District - Respondent
Decided On : 02-07-03

Headnote:

Constitution Of India 1908 - Article 14 and 19 Andhra Pradesh Indian Liquor and Foreign Liquor Rules 1970 – Rule 31 and 9 - legal – challenged - validity of Clause - license is granted if applicant is solvent and eligible for grant of license - Andhra Pradesh Indian Liquor and Foreign Liquor Rules is challenged directly - However notification issued which is in pari materia with Rules is in question - Before noticing facts it is necessary to point out legal framework for allotment grant of Form licenses under Rules as well as Andhra Pradesh Excise Indian and foreign Liquor Retail Sale Conditions of Licenses Rules and Excise Lease of right to sell Indian Liquor Foreign Liquor and Beer in retail under Licenses Rules –Held, No averment is made in affidavit that his son was in fact present at time of selection -Register produced before me shows that petitioner was not present when his name was called – Therefore it cannot be said that lottery conducted was illegal - After perusing affidavits and register produced before Court it is clear that case of petitioners cannot be accepted - In any view of matter court would hasten to add that it is essentially a question of fact whether or not petitioners were not present when their names were called - Office record produce before me belies submission of counsel for petitioners - petitions dismissed

V. V. S. RAO, J.

( 1 ) THE three writ petitions can be disposed of by a common order as the question raised is in relation to the validity of Clause (e) of sub-rule (4) of Rule 31 of the A. P. Indian Liquor and Foreign Liquor Rules, 1970 ( the 1970 Rules ). In W. P. No. 11713 of 2000, Rule 31 (4) (e) of the Rules is challenged directly. However, in W. P. Nos. 8775 and 9772 of 2000, Part IV (e) of the notification issued on 1-5-2000 which is in pari materia with rule 31 (4) (e) of the Rules is in question. Before noticing the facts, it is necessary to point out the legal framework for allotment/grant of Form il-24 licences under the 1970 Rules as well as A. P. Excise (Indian and foreign Liquor Retail Sale (Conditions of Licences) Rules, 1993 and A. P. Excise (Lease of right to sell Indian Liquor, Foreign Liquor and Beer in retail under IL 24 Licences) Rules, 1998 (hereafter called the 1998 rules ). In the State of Andhra Pradesh, the procedure adopted for grant of licence under the Rules or for that matter any licence under 1970 Rules has undergone change from time to time. The State was brought under prohibition in 1994. There was a total ban on the manufacture, sale and consumption of arrack and Indian made foreign liquor and only manufacture and sale of toddy was allowed. However, during 1997-98, the Government changed the policy and lifted prohibition insofar as Indian made foreign liquor is concerned. The 1998 Rules were promulgated to regulate grant of licence in Form IL-24. At the relevant time, the licence was to be granted after determining the number of shops in an area by conducting auction.

( 2 ) SUBSEQUENTLY, the procedure was changed amending Rule 2 of the 1998 Rules introducing the system of drawal of lots wherever there are more than one applicant for the same shop. With effect from 31-3-1999, Rule 2 of 1998 rules was again amended making way for grant of IL-24 licence on an open licence system to be governed by the 1970 Rules and 1993 Rules. Rule 31 of the 1970 Rules provides for procedure for grant of licence. At the relevant time, the procedure contemplated is as follows. The shops shall be notified by issuing Gazette notification as per Rule 2 of the 1998 rules. Where there is only one applicant for shop, the procedure prescribed under Rule 31 (1) (a) of 1970 Rules is followed and licence is granted if the applicant is solvent and eligible for grant of licence.

( 3 ) SUB-RULE (4) of Rule 31 of the 1970 Rules reads as under. 31 (4) The following procedure shall be adopted for the selection of applicants for grant of IL-24 licence in respect of shops notified under Rule 2 of the andhra Pradesh Excise (Lease of Right to Sell Indian Liquor, Foreign liquor and Beer in Retail under IL-24 Licences) Rules, 1998. (A) Where there is only one application for a shop, the procedure prescribed under sub-rule (1) (a) shall be followed. (b) Where there are more than one application for a shop, the Excise superintendent shall make such enquiry as he may think necessary to ascertain the bona fide of the applicants and their solvency and other particulars furnished in the application to determine their eligibility or otherwise for the grant of licence as per rules. The selection for grant of licence among the eligible applicants shall be by drawal of LOT by the collector in the presence of the applicants who are available at the time of selection as notified under Rule 2 of the Andhra Pradesh Excise (Lease of Right to Sell Indian Liquor, Foreign Liquor and Beer in Retail under il-24 Licences) Rules, 1998. (c) In case the selected applicant is not willing to take the licence, the deposit shall stand forfeited to the Government. (d) The successful applicant shall sign his name or affix his thumb impression against the relevant entry in the register maintained for the purpose. (e) Where the successful applicant is not available in the place of selection, the deposit submitted by him, shall be forfeited and the selection may be










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