The main legal point established in the judgment is that the eligibility conditions for obtaining a liquor license, as prescribed under Rule 9 of the Rules 2002, are mandatory and not directory provisions, and any breach of these provisions calls for interference by the Court.

As per Hon'ble Shri A.K. Patnaik, C.J. :-

1. The petitioner is a business man and deals in liquor business. The State of Chhattisgarh was formed with effect from 01-11-2000 and the Madhya Pradesh Excise Act, 1915 was adapted under the provisions of the Madhya Pradesh Re-organization Act so as to make it applicable with modifications in the State of Chhattisgarh and on such adaptation. the Act has been renamed as Chhattisgarh Excise Act, 1915 (for short "the Act"") Section 62 (1) of the Act provides that the State Government may make rules for the purpose of carrying out the provisions of the Act and Section 62 (2) provides that the State Government may in particular, and without prejudice to the generality of the provisions of Section 62 (1) make rules on the matters specified in clauses (a) to (n) thereof. In exercise of this power under Section 62 (1) read with Clauses (d) (d-1), (e). (f). (g) and Clause (b) of Section 18 (1) of the Act. the State Government by a notification dated 15.03-2002 made the Chhattisgarh Excise Settlement of licences for retail sale of country/ foreign liquor Rules, 2002 (for short "the Rules 2002"). Thereafter, the Excise Commissioner, State of Chhattisgarh issued a circular dated 14-02-2005 to all the Collectors of the State of Chhattisgarh regarding the rules for settlement of licences for retail sale of country/foreign liquor shops in the State of Chhattisgarh for the year 2005-06. Pursuant to the said circular applications were invited from intending applicants for settlement of licences for retail sale of country liquor/ foreign liquor in the State of Chhattisgarh for the year 2005.06 and the petitioner amongst others applied for the group Rasera, District Raipur vide their application No.01250026 dated 26-02-2005 for licence of retail sale of country liquor/foreign liquor. After receipt of the applications, the respondents have proceeded to select the licensees. The petitioner has filed this writ petition challenging the circular dated 14.02-2005 issued by the Excise Commissioner. state of Chhallisgarh and praying that the impugned circular he quashed and suitable directions he given to the respondents with regard to selection of the retail licensees of country/foreign liquor shops in the State of Chhattisgarh.

2. At the hearing Mr. Ravindra Shrivastava along with Mr. P. Diwaker. Sr. Advocates submitted that under Section 62(2) of the Act, the State Government has made the Rules 2002 and Rule 9 of the Rules 2002 stipulates the eligibility conditions of the applicant and these are that the applicant should be a citizen of India or a partnership firm whose partners are citizen of India; should be above 21 years of age; should not he a defaulter/or should not he black listed or debarred from holding an excise licence under the provisions of the Rules made under the Act, possesses or has an arrangement for taking on rent suitable premises in the concerned locality for opening the shops in accordance with the Rules; possesses good moral character and has no criminal background and has not been convicted of any offence punishable under the Act or Narcotic Drugs and Psychotropic Substances Act, 1985 or any other law for the time being in force and that no government dues are outstanding against him. But the format of the application as prescribed by the Excise Commissioner, State of Chhattisgarh in the impugned circular does not contain any column requiring the applicant to furnish information to show that he satisfies the aforesaid eligibility conditions as prescribed under Rule 9 of the Rules 2002. they submitted that Rule 11 of Rules 2002 provides for selection of licensee from amongst such eligible or suitable applicants but unless the applications show that the applicants satisfied the eligibility conditions as prescribed in Rule 9 of the Rules 2002, the Committee entrusted under Rule 11 to select the licensee will not be able to know as to whether the applicant is eligible or suitable