1969 Supreme(Del) 47
Delhi High Court
S. N. ANDLEY,PRAKASH NARAIN
Hans Raj - Appellant
Versus
Commissioner of Excise, Vikas Bhawan, New Delhi - Respondent
Civil Writ No. 191 of 1968
Decided On : 02/27/1969
Important Points
Subject
Excise - HEARING - PRINCIPLES OF NATURAL JUSTICE
Act Referred
DELHI LIQUOR LICENCE RULES : R.5.10, R.5.4
PUNJAB EXCISE ACT : S.15(5), S.43
Headnote
EXCISE - PUNJAB EXCISE ACT, 1914 - SECTION 15(5) - HEARING - PRINCIPLES OF NATURAL JUSTICE - VIOLATION - WRIT OF CERTIORARI AND MANDAMUS ISSUED.
Fact of the Case:
Petitioner and respondents 3 and 4 were partners in a liquor business. In 1951, the petitioner ceased to be a partner, and respondents 3 and 4 ceased to be partners in another business. In 1964, a new partnership deed was entered into, whereby respondent 5, son of respondent 3, was taken in as a partner. In 1966, another partnership deed was entered into, whereby the petitioner also came in as a partner. Respondent 3 made an application to the Excise authorities for withdrawal of his earlier application for including the name of the petitioner in L-2 licence. The District Excise Officer passed an order allowing the inclusion of the names of respondent 5 and the petitioner. Respondent 3 sent a representation to the Lt. Governor, Delhi, contending that he was the sole proprietor of the L-2 licence and that the two names added to the L-2 licence should be deleted. A notice was issued to the petitioner and respondents 3 to 5 to show cause why the addition of the petitioner and respondent 5's names should not be omitted. The petitioner requested for copies of the records and inspection of certain records and licences. The Excise Commissioner passed an order directing the parties to file their final written statements by January 8, 1968, failing which the case was to be decided ex parte. The Excise Commissioner passed an order deleting the names of the petitioner and respondent 5 from the L-2 licence.
Finding of the Court:
The court held that the order dated 7/17th February, 1968 was passed in violation of the provisions of sub-section (5) of Section 15 of the Punjab Excise Act, 1914 and the principles of natural justice. The court found that the Excise Commissioner did not give a reasonable opportunity to the petitioner to be heard before passing the impugned order.
Issues: Whether the impugned order dated 7/17th February, 1968 was passed in violation of the provisions of sub-section (5) of Section 15 of the Punjab Excise Act, 1914 or the principles of natural justice.
Ratio Decidendi: The court held that sub-section (5) of Section 15 of the Punjab Excise Act, 1914 provides that no order shall be made under this section which adversely affects the rights of any person upon whom an obligation is imposed by or under this Act, without giving such person a reasonable opportunity of being heard. The court found that the order dated 7/17th February, 1968 affects the rights of the petitioner because his claim that his name should remain as a partner of Kishan Lal and Co. on the L-2 licence has been decided adversely to him. The court also found that the Excise Commissioner did not give a reasonable opportunity to the petitioner to be heard before passing the impugned order.
Final Decision: The court issued a writ of certiorari quashing the order passed by the Excise Commissioner, respondent No. 1, on 7/17th February, 1968 and also issued a writ of mandamus directing him to hear the matter afresh and to decide it according to law.
S. N. Chopra Sr. with S. L. Bhatia, for Petitioner; D. Narasaraju, Sr. with Brijbans Kishore and J.N. Aggarwal, Ravinder Narain, C.L. Itorora, for Respondents.
S.N. ANDLEY, J. :- We are confining our decision in this writ petition to the question whether the impugned order dated 7/17th February, 1968 was passed in violation of the provisions of sub-section (5) of Section 15 of the Punjab Excise Act, 1914 or the principles of natural justice. This order came to be passed in the circumstances hereinafter stated.
2. The petitioner; respondent No. 3 and respondent No. 4 are sons of late Ishar Dass. The deceased was the holder of an L-4 licence issued to him under the Act for the retail sale of liquor in a restaurant. The deceased was the sole proprietor of the Esplanade Bar and Restaurant, Chandni Chowk, Delhi. He died on or about June 2, 1946. Thereafter, on March 14, 1947, a deed of partnership was executed between the petitioner and respondents 3 and 4, being the successors and heirs of the deceased, in respect of the business carried on under the style of Esplanade Bar and Restaurant. In 1948, these three persons also purchased the United Coffee House, New Delhi. In 1951, the petitioner ceased to be a partner of the business carried on in the name of Esplanade Bar and Restaurant and respondents Nos. 3 and 4 ceased to be partners in the United Coffee House, New Delhi.
3. The L-4 licence was discontinued on or about August 13, 1956 in accordance with the prohibition policy and in its place an L-2 licence was, it is alleged granted to Kishan Lal and Co. The L-2 licence was for wholesale and retail sale of liquor. At this time, respondents Nos. 3 and 4 were the partners of Kishan Lal and Co. aforesaid.
4. Another partnership deed was entered into on July 1, 1964, whereby respondent No. 5 son of respondent No. 3, was taken in as a partner of Kishan Lal and Co. and, on July 27, 1964, an application was made for the inclusion of respondent No. 5 as a partner in respect of the L-2 licence.
5. Another partnership deed was entered into on July 1, 1966 whereby the petitioner also came in as a partner of Kishan Lal and Co. Therefore, at this time, the partners of Kishan Lal and Co. were the petitioner and respondents Nos. 3 to 5. Since the petitioner had become a partner of Kishan Lal and Co., an application was made on December 10, 1966, for including his name also on the aforesaid L-2 licence. It is the contention of the petitioner that written statements were made by respondent No. 3 on his own behalf and as attorney for respondent No. 5 and by respondent No. 4 supporting the application which had been filed on December 10, 1966.
6. On April 19, 1967 another deed of partnership was executed between the petitioner and respondents Nos. 3 to 5 in which, inter alia, the respective shares of the partners were redetermined. It is alleged that prior to this partnership deed, respondent No. 3 had, on April 5, 1967 made an application to the Excise authorities for withdrawal of his earlier application for including the name of the petitioner in L-2 licence.
7. The District Excise Officer passed an order on June 9, 1967 which was communicated to Kishan Lal and Co. by his letter dated June 14, 1967. By this letter the aforesaid firm was informed that the request for the inclusion of the names of respondent No. 5 and the petitioner had been allowed subject to the responsibilities for all obligations under the Excise law. In fact, a further communication dated June 20, 1967 was addressed by the District Excise Officer to Kishan Lal and Co. stating that the names of the petitioner and respondent No. 5 had been included in the L-2 licence as partners and the L-2 licence was itself returned to the firm.
8. Then on November 7, 1967, respondent No. 3 sent a representation to the Lt. Governor, Delhi, in which, broadly speaking, it was contended that respondent No. 3 was always the sole proprietor of the aforesaid L-2 licence and continued to be so. He prayed that the two names added to the L-2 licence should be deleted. Upon this representation, a notice dated November 28, 1967 was issued to the petitioner an