SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1956 Supreme(Pat) 39

PATNA HIGH COURT
V.Ramaswami, Rai and Sinha JJ.
Sheopujan Choudhury
Versus
State Of Bihar
Miscellaneous Judicial Case No. 171 of 1954 ;
Decided On : FEBRUARY 29, 1956

Headnote:

CANCELLATION OF LICENSE - EXCISE ACT - NATURAL JUSTICE - WRIT OF CERTIORARI - Bihar and Orissa Excise Act (2 of 1915) - Sec. 42(1)(c) - Art. 226 of the Constitution of India.

Fact of the Case:

The petitioner, a licensee of Sakri Gall Country Spirit Shop in the Santhal Paraganaa since August, 1952, challenged the order passed by the Deputy Commissioner, Santhal Parganas, Dumka, on 28-10-1953, cancelling his license. The petitioner contended that the order was passed without affording him sufficient opportunity of being heard and that the Deputy Commissioner had no jurisdiction to cancel the license without following the principles of natural justice.

Finding of the Court:

The Court held that the Deputy Commissioner had no jurisdiction to cancel the license of the petitioner without following the principles of natural justice and that the order of cancellation was null and void and without jurisdiction. The Court further held that the fact that an appeal against such an order had been dismissed did not make the order an order with jurisdiction or valid in law.

Issues: 1. Whether the Deputy Commissioner had jurisdiction to cancel the license of the petitioner without following the principles of natural justice? 2. Whether the order of cancellation was null and void and without jurisdiction? 3. Whether the fact that an appeal against such an order had been dismissed made the order an order with jurisdiction or valid in law?

Ratio Decidendi: 1. The Court held that the Deputy Commissioner had no jurisdiction to cancel the license of the petitioner without following the principles of natural justice. The Court relied on the following principles: * No order should be passed to the detriment of any person affecting his property or his right of profession or trade, unless he has had an opportunity of being heard in his own defence of the charges levelled against him. * The Collector is bound as a matter of principle to give a fair opportunity to the licensee to present his case. * The Collector is under a duty to hear the matter in a judicial spirit for the question at issue is a matter of proprietary or professional right of an individual. 2. The Court held that the order of cancellation was null and void and without jurisdiction. The Court reasoned that the Deputy Commissioner did not give opportunity to the petitioner of being heard in the matter of cancellation of his license, and that it appeared that his attention was not properly drawn to the provisions which enabled him to cancel the license. 3. The Court held that the fact that an appeal against such an order had been dismissed did not make the order an order with jurisdiction or valid in law. The Court reasoned that it was not the Commissioner of Excise who cancelled the license; it was the Deputy Commissioner who did it, and, before cancellation of the license, the party affected thereby must have been heard by the Deputy Commissioner; and it is no good saying that, after the order of cancellation was passed, the petitioner was heard in appeal against that order.

Final Decision: The Court set aside the order of the Deputy Commissioner dated 28-10-1954, cancelling the license of the petitioner.

Judgment

Sinha, J.

1. This is an application under Articles 226 and 227 of the Constitution of India for quashing the order passed by Mr. U.K. Ghose, Deputy Commissioner, Santhal Parganas, Dumka, on 28-10-1953,

2. The petitioner is a licensee of Sakri Gall Country Spirit Shop in the Santhal Paraganaa since August, 1952. The licence, which has been cancelled, was granted to him on 1-4-1953, for a period of one year and was to expire on 31-3-1954, the number of his licence is 119. On 4-6-1953 the Inspector of Excise, Sri Ramdeo Prasad Shahi, visited his shop along with one Jagarnath Singh, who, according to the petitioner, was his salesman but had been dismissed from service long time before.

According to the petitioner, one Rameshwar Prasad was his salesman during the licence year as mentioned in the license itself whereas, according to the Inspector of Excise, Jagarnath Singh was the agent and salesman of the petitioner. The Inspector found three bottles of country liquor with short measure and one bottle of weak liquor. He sealed all the four bottles, and took a receipt from the said Jagarnath Singh. He tested the liquor and found the strength to be 62.3 U. P. and 70.9 U. P., and asked the petitioner to submit his explanation to the Superintendent of Excise on 20-6-1953, along With all these four bottles sealed by him.

On 20-7-1953 (wrongly mentioned as 20-6-1953 in the petition), the petitioner submitted his explanation to the Superintendent of Excise. The case started upon the report dated 4-6-1953, was numbered as case No. 63 of 1953-54. On 21-8-1953, the Inspector again visited the shop of the petitioner, and made a report on three counts, namely, (1) that the petitioner was charging excess prices; (2) that liquor was sold before pre-scribed hours; and (3) that the accounts for 20-6-1953, had not been written up.

The case started on this report was numbered as case No. 72 of 1953-54. The petitioner, in his explanations to the Superintendent of Excise on 20-7-1953, disputed the allegations made in the reports. In his explanations, the petitioner submitted that he was suffering from malaria for some time past and the salesman was in charge of the gaddi during the period of his illness; that the Inspector had seized the bottles; from the possession of customers who had already consumed a part of the liquor in their respective bottles and that was why the liquor was found to be a little less than what it ought to have been, namely, 20 Oz.

He further said that, on 20-6-1953, the Inspector had found two persons, at some distance from his shop, drinking their own liquor purchased on the previous day, that there was no sale at 7 a.m. or before the prescribed hours, and that the price charged was not excessive inasmuch as the price charged was Re. 1-3-6 which included the price of the bottle and the price of the bottle was to be refunded to the customers on their returning the bottles to the petitioner. The petitioner also filed a petition along with his explanation dated 4-6-1953, signed by three customers, supporting the explanation submitted by the petitioner regarding the complaints mentioned in the report dated 4-6-1953. It appears that, on 17-9-1953, the Superintendent of Excise in case No. 72 of 1953-54, asked the Inspector of Excise whether he had taken any statement of the customers, the consumers and the salesman.

In reply thereto on 29-9-1953, the Inspector reported that he had questioned two customers named Charo and Poosa of village Harischandra-pur in presence of the licensees man, but they refused to give anything in writing or to put their left thumb impressions; the salesman also had refused to give anything in writing.

The strength of the spirit was tested by the Superintendent of Excise, and it was found to be 61.1 U. P. as against 62.3 U. P. reported by the Inspector. This was the result of test on 23-7-1953. When it was re-tested on 16-9-1953, he found the strength to be 60.6 U. P., the difference being of .6 o



































































































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top