JUDGMENT - PURNIK S.W., J.:---After hearing the parties at length, I had passed the following operative order on 1st February, 1990:--

"Heard Mr. V.R. Manohar with Mr. Rahimtoola and Mr. S.V. Manohar for the petitioners and Mr. Gangakhedkar, A.P.P. for the State-respondent.

For reasons stated in the accompanying judgment, the Rule is made absolute to the extent that the order of issue of process and taking cognizance of the offence is quashed and set aside as also the order of condonation of delay. Writ be issued accordingly. This order shall govern the connected Criminal Applications."

I now proceed to give the reasons for the aforesaid order. The judgment in present Criminal Applications No. 531 of 1987 will also govern Criminal Application Nos. 623, 624, 625, 626, 812 and 1868 all of 1987 as the facts are identical and they arise out of the same proceedings.

2. This application under section 482 of the Criminal Procedure Code is directed against the order of the Chief Judicial Magistrate, Satara, dated 21st November, 1986, for quashing the order passed by the trial Court taking cognizance of the offence directing issue of process to the accused and condoning the delay in filing the prosecution. It is necessary to state few facts in order to appreciate the rival contentions and the questions of law stated hereinafter that arise upon the controversy.

3. M/s. Doburg Lager Breweries Private Limited is a company incorporated under the Companies Act and it carries on business of brewing, bottling and selling Beer. For this purpose, the company has set up a brewery at Satara in the State of Maharashtra and it was granted a licence in the year 1972 for the manufacture of Beer under the Maharashtra Manufacture of Beer and Wine Rules, 1966, framed under the Bombay Prohibition Act, 1949. The licence was initially for a period of five years and was thereafter renewed from time to time every five years and was valid lastly upto 31st March, 1987.

4. On 23rd August, 1985, the Officers of the Prohibition and Excise Department of the State of Maharashtra in company with the Sales Tax and the Income-Tax Officers carried out surprise raids at the Brewery at Satara. Incidentally, it may be stated that applicant No. 1 in Criminal Application No. 531 of 1987 was at the material time the Managing Director of the said company and applicant Nos. 2, 3 and 4 in the said criminal application were the employees of the company as Manager Co-ordinator, Head Brewer and Manager (Accounts) respectively. The residential premises of applicants Nos. 2 to 4 were also searched on the same date and certain documents including various books, registers, files, Bank statements, etc. were seized and taken away by the Prohibition/Excise Officers without even recording a panchnama thereof.

5. That, on 26th August, 1985, the Registered Office of the company at Bombay was searched, but nothing incriminating was found. On 5th September, 1985, the company's main Distributor's premises at Bombay-M/s. J.P.C. Shroff and Sons-were also searched, with no incriminating documents being found threat. On 4th October, 1985, the residential premises of applicant No. 1 were also raided and searched, but no incriminating documents were even found there. Simultaneously, searches were also carried out at the places of different persons connected with the company which included applicant Nos. 1 to 5 in Criminal Application No. 812 of 1987, applicant No. 1 in the said application being the wholeseller for the products of the company for the entire State of Maharashtra except Bombay.

6. Thereafter, nothing further was heard, but on 18th November, 1985, without giving any show cause notice or giving the company an opportunity of being heard, the State of Maharashtra in the purported exercise of the powers under section 56(b) of the Bombay Prohibition Act cancelled the licence granted to the company for the manufacture of Beer and on the same day, the Brewery was sealed and closed. On 22nd November,

Click Here to Read the rest of this document