Karnataka High Court
Judges : Y.Bhaskar Rao,V.Gopala Gowda
NAGARAJU - Appellant
Versus
STATE OF KARNATAKA - Respondent
Writ Petition 1044 Of 1999 Connected With Writ Petition Nos. 2751 And 12781 Of 1999
Decided On : 06/15/1999
Advocates Appeared :
BASAVARAJ KAREDDY, G.K.BHAT, K.PRABHAKAR RAO, N.K.Ramesh
( 1 ) THESE writ petitions are filed in the nature of public interest litigation assailing the action of the officers of the Excise Department empowered to grant licences, in granting innumerable licences under the Karnataka Excise Act, 1965 ('act', for short) and rules framed therein. Brief facts of the case are:
( 2 ) THE petitioners are the residents of different places in the State and they are aggrieved by the action of the respondents indiscriminately granting licences for the sale of Indian made liquor in the districts of Tumkur, Raichur and Kolar. The case of the petitioners is that the Act and the rules framed therein prescribe guidelines for the grant of licences. The authority to grant licence takes into consideration the population of the area as provided under the Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968. Therefore, the circular issued by the Commissioner dated 20-12-1995 (Annexure-H) be quashed with a direction to respondents 2 to 4 to withdraw the licences granted in Form CL 2 or CL 9 over and above the quota permissible under Rule 12 of the Rules and further direct the respondents to implement Rule 12 strictly and not to grant more CL 2 or CL 9 licences in the above places.
( 3 ) WE ordered notice to the Government Advocate and at the request of both the parties, the writ petitions are taken up for final hearing. The contention of the petitioners is that the impugned circular-Annexure-H, of the Commissioner is violative of Rule 12 of the Rules and therefore, is liable to be quashed and action be taken for cancelling the licences and not to grant any further licences in violation of Rule 12. But, the learned Government Advocate contended that the circular was issued as per the requirement in those districts because number of tourists in karnataka have increased and as there are number of tourists spots and some more new tourists spots are sighted, recently, Tourist Department made recommendations for providing facilities for tourists including foreign tourists and as such the Government decided to authorise the commissioner for taking necessary action and in turn, he issued the circular. The circular is in consonance with the rules and provisions of the Act. Therefore, there is no merit in the writ petitions and the same are liable to be dismissed.
( 4 ) TO appreciate the above contentions, it is relevant to extract some of the provisions of the Act. The Act is promulgated with a view to provide uniform laws regarding production, manufacture, import, export, purchase and sale of liquor and in such States levy of duty thereon and for certain other matters mentioned in the Act. Sub-section (7) of Section 2 defines Excise Commissioner as the officer appointed as Excise Commissioner under Section 3; sub-section (10) defines Excise officer as the Excise Commissioner, a Deputy Commissioner, a Deputy Commissioner of Excise or any officer or other person lawfully appointed or invested with powers under Section 5, section 5-A or Section 6; sub-section (15) of Section 3 defines Indian Liquor as liquor produced, manufactured or compounded in India in the same manner as Gin, Brandy, Whisky or Rum imported into India and includes 'milk punch' and other liquors consisting of or containing spirits; sub-section (18) defines liquor; sub-section (23) defines 'prescribed' as meaning prescribed by rules made under the Act. Section 26 of the Act provides for granting of the licences or permit under the Act and on payment of fees for a prescribed period subject to such restrictions and on such conditions as may be prescribed. Section 29 empowers the Government for cancelling or suspending licence. Section 30 empowers for withdrawing the licence and section 31 for surrender of licence. Sub-rule (2) of Rule 2 enables the Government to frame the rules regulating the grant of licence to person or class of persons to whom licence for the wholesale or retail sale of intoxicants can be grant
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