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1990 Supreme(Pat) 374

PATNA HIGH COURT
Satyeshwar Roy and S.B.Sinha JJ.
Ranchi Wine Dealers Welfare Association
Versus
State Of Bihar
C.W.J.C. No. 1303 of 1990 ;
C.W.J.C. No. 851 of 1990 ;
Decided On : NOVEMBER 8, 1990

Headnote:B. & O. Excise Act, 1915, Secs. 22 & 42-Auction for Settlement of retail foreign liquor Shops containing clauses that the settlee shall be required to lift minimum guaranteed quota per month-in case of failure action u/s 42 of the Act to be taken-right to deal in intoxicants basically belongs to the State Govt.-grant of license to deal in liquor in merely a privilege derived by the licensee to deal therein to the extent subject to regulatory measures which may be adopted by the State from lime to time-policy decision of the state can neither be said to be arbitrary or discriminatory action-AIR 1975 SC 1121, AIR 1987 SC 251, AIR 1990 SC 1637 rel. on, (1980) 3 SCC 599, AIR 1987 SC 1109, AIR 1989 SC 1642, AIR 1986 SC 1571, AIR 1986 SC 180, 1990 (Vol. I) SCC 109, AIR 1954 SC 220, AIR 1967 SC 1368, AIR 1979 SC 1550, AIR 1981 SC 2138 refered.

       (Paras 8, 9, 14, 15, 16, 17, 20 & 38)

       Bihar & Orissa Excise Act, 1915, Secs. 90, 91 & rule 138 -amendment in the rules curtailing the business hours of the retail vendors from 8 A.M. to 7 P.M. but sell in bar and restaurants till 10 P.M.-amended rule, apply to subsisting licensee and primafacie discriminatory and ultra vires Art 14-AIR 1978 SC 1457 rel. on, 1978 tax. L.R. 1953 dist.

       (Paras 32, 33, 34 & 36)

       Contract Act. 1872, Sec 23-Clause containing requirement to lift minimum guarantee quota permonth-not hit by the section 23-AIR 1986 SC 1571 dist. (Paras 24)

       Constitution of India Articles 14, 19(1)(g) & Art 226, 227-auction for settlement of retail foreign liquor-clause containing requiring the settlee licensees to lift monthly minimum quota-clause is not unreasonable, irrational or arbitrary-the policy decision in respect of minimum guarantee quota whereby the State intends to increase its revenue, can neither be said to be arbitrary or discrimintory so as to attract provisions of Art 14-petitioners can not be allowed to challenge the contractual obligations by filing the writ petitions-(1980) 3 SCC 599, AIR 1990 SC 1637 rel. on, AIR 1937 SC 1109, AIR 1989 SC 1641, AIR 1986 SC 180 dirt., AIR 1976 SC 2237, AIR 1978 All. 41, AIR 1975 SC 2008, 1878 (2) SCC 136 ref. (Paras 9, 11, 20, 25 & 26)

       Constitution of India. Articles 47 & 37-Directive principles of State Policy providing the State for making all endavours for prohibition-total prohibition not imposed in terms of Art. 47, the State is free to regulate the trade in such manner as it thinks fit and proper-prohibition for minimum guaranteed quota was introduced in order to control use of illicitliquor and for the purpose of enhanced its revenue cannot be said to be violative of Art 47-AIR 1959 SC 648 & AIR 1968 All 14 ref. (Paras 27, 28, 29, 30 & 31)

       Bihar Excise Rules-Rule 138 read with Articles 14 and 19 of the Constitution of India -amendment in Rule 138 regulating the time limit for retail vend of foreign liquor but same not made applicable to licensed bars and restaurants-there is no fundamental right to carryon trade or business in liquor and policy decision of State can neither be said to be arbitrary not discriminatory so as to attract provisions of Art. 14-however, amendment to Rule 138 making discrimination between retail vend of foreign liquor and the licensed bars and restaurants is ultra vires Art. 14 of the Constitution. AIR 1954 SC 220. AIR 1959 SC 648, AIR 1978 SC 1457, AIR 1987 SC 251, AIR 1990 SC 1637-Relied Upon; AIR 1967 SC 1368, AIR 1968 All 14, AIR 1975 SC 360, AIR 1975 SC 2008, AIR 1976 SC 2237, (1978) 2 SCC 136, AIR 1978 All 41, AIR 1979 SC 1550, AIR 1981 SC 2138-Referred; AIR 1966 SC 1686, 1978 TLR 1953, AIR 1986 SC 180, AIR 1986 SC 1571, AIR 1987 SC 1109, AIR 1989 SC 1642, (1990) 1 SCC 109-Distinguised.

       (Paras 8, 11, 15, 16, 20, 21 & 26)

       Bihar Excise Rules, Rule 138 read with Section 22 of Bihar and Orissa Excise Act, 1915 and section 23 of the Contract Act-amendment in Rule 138 regulating the time of retail vend-condition regulating the time incorporated in clause 5 of the agreement -right to deal in intoxicants basically belongs to the State Govt. and grant of a license to deal in liquor is merely a privilege which is subject to regulatory measures -the clause is not hit by section 23 of the Contract Act and the contractual obligations cannot be challenged AIR 1975 SC 1121,(1980) 3 SCC 599-Relied Upon.

       (Paras 17, 24, 25 & 26).

Judgment

SATYESHWAR ROY and S.B.SINHA JJ.

1. These writ applications involving common questions of law and fact were heard together and. are being disposed of by this judgment.

2. Whether Clause 5 of the agreement as contained in Annexure-1 to the writ application, whereby and whereunder, minimum guaranteed quota required to be lifted by the licensee has been fixed, and the amendment made in Rule 138 of the Bihar Excise Rules, as published in the Gazette on 28-3-1990 whereby and whereunder it was directed that the retail vends may be kept open from 8 A.M. to 7 P.M. only, instead of Sunrise to 10 P.M. are valid or not, are the questions involved in these writ applications.

3. In C.W.J.C. No. 1303 of 1990 (R), petitioner No. 1 is an association of Ranchi Wine dealers and petitioners Nos. 2 to 6 are licensees under the Bihar and Orissa Excise Act, 1915 (the Excise Act). They have challenged that part of the condition of licence by which they are to lift and sell every month minimum guaranteed quota of foreign liquor and also notices by which the respondents have threatened that if the petitioners failed to comply the aforesaid obligations, their licences would be terminated/cancelled. They have sought the aforesaid relief on the ground that the condition fixing minimum quantity of liquor to be sold each month was against the Directive Principles of State Policy as enshrined under Article 47 of the Constitution of India. The petitioners challenge the notification as contained in Annexure-4 reducing the period when the retail liquor shops may be kept open on the ground of discrimination inasmuch as the same was not made applicable to bar and restaurant licenced to sell liquor. The petitioners were also allowed to pray for this relief in view of the fact that the petitioner in C. W. J. C. No. 851 of 1990 (R), a retail liquor licensee, challenged the wireless message as contained in Annexure-4 to that writ petition whereby all the concerned officers were directed to see that retail vends of foreign liquor remained open from 8 A.M. to 7 P.M. throughout the year. We may notice that Annexure-4 to C.W.J.C. No. 851 of 1990 (R) is a follow up action of the notification issued by the Board of Revenue which is Annexure-4 to the writ application. So far C.W.J.C. No. 1303 of 1990 (R) is concerned, admittedly the notification as contained in Annerure-1 was published in which public in general were informed that liquor shops situate at the different places including the district of Ranchi for selling country made foreign liquor Would be settled by public auction. In Annexure-1, the period for which the shops will be so settled and the minimum guaranteed quantity to be sold by each shop was also mentioned. In the auction, the petitioners Nos. 2 to 6 succeeded and five shops in the town of Rahchi were settled with them. The petitioners agreed to sell the minimum quantity of liquor which was one of the terms and conditions of the bid According to Rule 138 of the Excise Rules as it stood then, the petitioners were entitled to keep their shops open from Sunrise to 10 P.M. On 28th March, 1990, the Board of Revenue in exercise of its power under Section 90 of the Excise Act amended Rule 138 of the Excise Rules whereby the period during which the retail vend may be kept open was fixed from 8 A.M. to 7 P.M.

4. The petitioners have challenged the condition by which minimum guaranteed quota was fixed for each of the petitioners on the ground that the condition was in conflict with Article 47 of the Constitution which provides that the State shall make endeavour to bring about prohibition of consumption of intoxicating drinks The condition, therefore, was bad in law. They challenged Annexure-4 i.e. amendment of Rule 138 of the Excise Rules on the ground that the same was not made applicable to bar and restaurant who are also licenced to sell loose country-made foreign liquor.

5. So far C.W.J.C. No. 851 of 1990 (R) was concerned; the petitioner was a licensee




























































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