HIGH COURT OF CALCUTTA
A. K. MUKHERJI, SABYASACHI MUKHERJI
STATE OF WEST BENGAL, THROUGH ADDL. SECY. DEPT. OF EXCISE AND ORS. - Appellant
Versus
RUTTONJEE AND COMPANY AND ANR. - Respondent
A. F. O. O. 223 Of 1967
Decided On : MARCH 16, 1970
EXCISE - Renewal of Brewery License - Control of State Government - Section 8(1) of Bengal Excise Act, 1909 - Interpretation - Right to Renewal - Nature of Brewery License - Premature Application - Undertaking by Petitioner - Effect.
Fact of the Case:
The petitioner, a registered firm, applied for renewal of its brewery license for the year 1966-67. The State Government, however, directed the Collector to grant the license in the name of a limited company, excluding the petitioner. The petitioner challenged this decision by filing a writ petition under Article 226 of the Constitution.
Finding of the Court:
1. The expression "control" in Section 8(1) of the Bengal Excise Act, 1909, as amended in 1965, does not authorize the State Government to interfere with the discretion of the Collector in granting or renewing brewery licenses. 2. A brewery license is of a more permanent nature than a vending license, and the applicant is entitled to have an application for renewal dealt with in accordance with law, even though there is no legally enforceable right to renewal. 3. The State Government's direction to the Collector to grant the license in the name of the limited company was without jurisdiction and was rightly quashed by the trial court. 4. The undertaking given by the petitioner to abide by the decision of the Minister or the Government regarding the renewal of the license did not disentitle the petitioner to challenge the impugned order, as the Government cannot acquire jurisdiction by virtue of such an undertaking.
Issues: 1. Whether the State Government has the authority to direct the Collector as to how a particular application for renewal of a brewery license should be dealt with, under Section 8(1) of the Bengal Excise Act, 1909? 2. Whether the petitioner has any right to ask for renewal of the brewery license? 3. Whether the application for renewal was premature? 4. Whether the undertaking given by the petitioner barred the petitioner from challenging the impugned order?
Ratio Decidendi: 1. The expression "control" in Section 8(1) of the Bengal Excise Act, 1909, as amended in 1965, does not authorize the State Government to interfere with the discretion of the Collector in granting or renewing brewery licenses. The State Government's power of control is limited to issuing general instructions or directions, and does not extend to issuing specific instructions about the disposal of a particular application. 2. A brewery license is of a more permanent nature than a vending license, and the applicant is entitled to have an application for renewal dealt with in accordance with law, even though there is no legally enforceable right to renewal. 3. The State Government's direction to the Collector to grant the license in the name of the limited company was without jurisdiction and was rightly quashed by the trial court. 4. The undertaking given by the petitioner to abide by the decision of the Minister or the Government regarding the renewal of the license did not disentitle the petitioner to challenge the impugned order, as the Government cannot acquire jurisdiction by virtue of such an undertaking.
Final Decision: The appeal was dismissed, subject to the variation that the portion of the trial court's order directing the respondents to determine the application for renewal according to law was vacated, as the period for which the application was made had elapsed and the Receiver appointed by the Court of Appeal had been granted a license for that period.
( 1 ) THIS is an appeal over right to brew intoxicants in a brewery at Kalyani. There is a registered firm hereinafter referred to as the firm carrying on business under the name and style of Ruttonjee and Company. Its partners are Hirjoo Ruttonjee Bhesania and Feroze Man-chershaw Bhesania. There is also a limited Company bearing the name Ruttonjee and Company Ltd. , hereinafter referred to as the limited Company. The company was incorporated in 1960 including two partners of the firm in its Board of Directors. It appears that the firm whose original business was sale of liquors, applied in 1957 to the appropriate authority for permission to start a brewery in West Bengal and obtained such permission from the State of West Bengal and also obtained the permission of the Government of India for the establishment of a new industrial undertaking for the manufacture of beer. In 1959 the brewery was established and the partners of the firm decided to promote a limited company. The brewery licence under the Rules framed under the Bengal Excise Act, 1909, hereinafter referred to as the Act, was granted for the period from the 2nd August, 1965 to the 31st March, 1966, jointly in favour of the company and the firm, subject to certain conditions mentioned in the letter of the Government of West Bengal dated 24th July, 1965. For the next year, commencing from the 1st April, 1966, an application for renewal of the licence was submitted to the Collector on the 25th of February, 1906, jointly by the firm and the company for the renewal of the licence granted for the previous period. The firm further alleged that on the 5th of April, 1966, the firm received a copy of the letter which is Annexure 'i' and appearing at page 1 of the Supplementary Paper Book, and which is dated 30th March, 1966, written by the Assistant Secretary, Excise Department, Government of West Bengal, to the Excise Commissioner by which the Government expressed its approval for the grant of the brewery licence in respect of the said company alone, to the exclusion of the firm for the year 1966-67 commencing on the 1st of April, 1966. The firm thereafter made an application to this Court under Article 226 of the Constitution challenging the decision to issue Excise Licence for the brewery at Kalyani for the year 1966-67 in the sole name of the Company, on the ground, inter alia, that the application for renewal jointly made has not been dealt with by the Collector or the Commissioner of Excise who is alone entitled to deal with the application according to law and the State Government has no jurisdiction to pass the impugned order or direction. It was stated in the petition that no licence had then been granted pursuant to the impugned order, the petitioner therefore prayed for appropriate writs to quash the impugned order and command the respondents, the State Government, the Commissioner of Excise, West Bengal and the Collector of Excise to cancel or not to give effect to the impugned order and then to deal with the joint application for renewal according to law.
( 2 ) THERE was dispute among the Directors of the Company and there were certain proceedings under the Companies Act, 1956. The company was separately represented in respect of two contending groups before the learned trial Judge and they have been so represented before this Court. There is one group represented by the Bhesania Group o Directors and Mr. R. C. Deb, learned Advocate, appeared for them before us, another group representing Mr. A. K. Thakur and others was represented by Mr. Somnath Chatterjee. It appears that the proceeding under Companies Act has come to an end. We were however told that further proceedings have started challenging the internal management of the Company. Be that as it may, it is not necessary for adjudication of the disputes between the parties in this appeal to advert to the same any more.
( 3 ) AFTER the application under Article 226 of the Constitutio
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.