2016 Supreme(Bom) 1701
IN THE HIGH COURT OF BOMBAY, NAGPUR BENCH
B.R. GAVAI, V.M. DESHPANDE, JJ.
Ramkisan s/o. Motilal Jaiswal & Ors. - Petitioners
Versus
The State of Maharashtra, through its Secretary, Department of Excise, Mantralaya & Ors. Respondents
Writ Petition Nos. 3390, 3391, 3392 & 3393 of 2015
Decided On : 23-11-2016
For the Petitioners: Mr. Abhay Sambre, Mr. A.R. Sambre
For the Respondents: Mrs. Bharti Dangre, Ms. S.Z. Haidar
Headnote:
PESA Act - Prohibition of Liquor Licenses in Scheduled Areas - Maharashtra Panchayat Extension to Scheduled Area (Prohibition and Regulation of Licensing) Rules, 2015 - Rule 4 - Rule 3 - Section 4 of the PESA Act
Fact of the Case:
The petitioners sought a declaration that the provisions under Rule 4 of the Maharashtra Panchayat Extension to Scheduled Area (Prohibition and Regulation of Licensing) Rules, 2015 are not applicable for renewal of licenses existing prior to the coming into force of the said Rules. The petitioners held country liquor licenses in Scheduled Areas and applied for renewal, but were directed to furnish the resolution of Gram Sabha for renewal.
Finding of the Court:
The court held that the provisions of Rule 4 of the Rules of 2015 are not applicable to licenses granted under Rule 3. It also clarified that the right of Gram Sabha to decide on selling of liquor in their areas should be exercised under the Bombay Prohibition (Closure of License on Resolution by Gram Sabha or representation by Voters in the Ward of Municipal Council/Corporation), Order 2008, not under the Rules of 2015.
Issues: Interpretation of the Maharashtra Panchayat Extension to Scheduled Area (Prohibition and Regulation of Licensing) Rules, 2015 and the applicability of Rule 4 to existing licenses in Scheduled Areas.
Ratio Decidendi: The court interpreted the language of Rules 3 and 4 and concluded that Rule 4 is applicable to licenses granted under Rule 3. It also clarified the exercise of the Gram Sabha's right to decide on liquor licenses under the Bombay Prohibition Order of 2008.
Final Decision: The court quashed the impugned communications and directed the respondents to consider the application of the petitioners for renewal of their licenses without insisting upon the resolution of Gram Sabha giving 'No Objection' as required under Rule 4 of the Rules of 2015.
B.R. Gavai, J.
1. Rule. Rule is made returnable forthwith. Heard by consent.
2. The petitioners have approached this Court being aggrieved by communication dt.31.3.2015 issued by respondent no.4 directing the petitioners to furnish the resolution of Gram Sabha thereby resolving to grant No Objection for renewal of petitioners' licences. The petitioners have prayed for a declaration that the provisions under Rule 4 of the Maharashtra Panchayat Extension to Scheduled Area (Prohibition and Regulation of Licensing) Rules, 2015 (hereinafter referred to as "the Rules of 2015") are not applicable for renewal of the licenses which are in existence prior to the coming into force of the said Rules.
3. All the petitioners are holding country liquor CLIII/FLII licenses in Ghatanji taluka, District Yavatmal. Undisputedly, the petitioners are running their business in the areas which fall under the Scheduled Areas declared for the State of Maharashtra by the President under Article 244 of the Constitution of India and are, therefore, administered and controlled as per Schedule V appended to the Constitution.
4. On 24.12.1996, the Parliament has enacted the Panchayats (Extension of the Scheduled Areas) Act, 1996 (hereinafter referred to as "the PESA Act") extending application of the provisions of Part IX of the Constitution of India to the Scheduled areas. The State Legislature has also made certain provisions in the Maharashtra Village Panchayats Act, 1958 for Gram Sabha and for giving effect to the features enumerated in Section 4 of the PESA Act. The said provision also includes matter relating to prohibition and regulation of intoxicants in the village to be dealt by the Gram Sabha of the Village.
5. In pursuance of the provisions under the PESA Act and the amendment to the Maharashtra Village Panchayats Act, 1958, the State Government has notified the said Rules. As per the provisions of the Maharashtra Prohibition Act, 1949 and the Rules framed thereunder, the licences granted to the petitioners are renewable on year to year basis. Accordingly, the petitioners have applied for renewing their licences for the period from 1.4.2015 to 31.3.2016. When the cases of the petitioners were being considered for renewal, the impugned communications came to be addressed. Being aggrieved thereby, the present petitions.
6. Mr. Abhay Sambre, learned Counsel for the petitioners submits that perusal of the Rules itself would reveal that the said Rules are not applicable to the licences which are already in existence. The learned Counsel submits that No Objection of the Gram Sabha as contemplated under sub-rule 4 will be applicable only if the license is granted after commencement of the said Rules.
7. Mrs. Bharti Dangre, learned Government Pleader vehemently contended that the interpretation placed by the learned Counsel for the petitioners is totally incorrect. She submits that the Rules are framed in order to give effect to the provisions under the PESA Act empowering the Gram Sabhas to decide as to whether manufacturing or selling of liquor should be permitted in their areas or not. The learned Government Pleader submits that applying the rule of Pragmatic interpretation, the Rules should also be applicable to all such licences which provide for manufacturing or selling of liquor if they fall within the Scheduled areas.
8. For appreciating the rival contentions, it will be appropriate to refer to Rules 3 and 4 of the Rules of 2015, which read thus :-
"4. Before the expiry of the license so granted, the Gram Sabha resolution shall be required for its renewal. The proposal for renewal of the license shall required to be presented by the licensing authority, if the license holder so applies, to the Gram Sabha, thirty days prior to the date of expiry of the license. The Gram Sabha shall convey its opinion in the form of a resolution on the said application prior to the date of expiry of the licence.
5. The Gram Sabha shall determine the quantity of loc