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2020 Supreme(Del) 894

IN THE HIGH COURT OF DELHI AT NEW DELHI
Navin Chawla, J.
Udi Departmental Store - Appellant
Versus
Govt. Of NCT Of Delhi & Anr. - Respondent
Writ Petition (Civil) No. 3494 of 2020; Civil Miscellaneous No. 12431 of 2020
Decided On : 15-09-2020

Advocates Appeared:
Rushab Aggarwal, Advocate, Tejasvi Chaudhary, Advocate, Aayushi Jain, Advocate, Ramesh Singh, Advocate, Dhananjaya Mishra, Advocate, Bhawna Kataria, Advocate

The trade in liquor is res extra commercium, allowing the State to impose limitations and restrictions. The State's decision not to issue or renew L-12/L-12F licenses falls within the ambit of Section 16 of the Delhi Excise Act, 2009, as it is a policy decision and not aimed at any individual defaulter.

Headnote:

L-12/L-12F Licenses - Delhi Excise Act, 2009 - Section 16(1), Section 17 - The judgment discusses the legal framework applied by the court in reaching its decision. The court highlighted the nature of trade in liquor as res extra commercium, authorizing the State to impose limitations and restrictions. It emphasized that the State has the exclusive right or privilege in respect of potable liquor and that a citizen has no fundamental right to trade or business in liquor as a beverage. The court also discussed the provisions of the Delhi Excise Act, 2009, and the relevant rules, emphasizing that the State's decision not to issue or renew L-12/L-12F licenses falls within the ambit of Section 16 of the Act, as it is a policy decision and not aimed at any individual defaulter. The court also rejected the petitioner's plea based on a perceived vested right of renewal, citing Section 18 of the Act, which negates any such claim.

Fact of the Case:

The petitioner, a licensee in the L-12/L-12F category for the retail sale of beer and wine, challenged the withdrawal of its license by the respondents based on a Cabinet Decision and subsequent Circular excluding the L-12/L-12F license category from renewal. The petitioner argued that the decision was arbitrary and unreasonable, while the respondents justified their decision based on large-scale violations observed in the departmental stores holding such licenses.

Finding of the Court:

The court found that the trade in liquor is res extra commercium, allowing the State to impose limitations and restrictions. It held that the State's decision not to issue or renew L-12/L-12F licenses falls within the ambit of Section 16 of the Act, as it is a policy decision and not aimed at any individual defaulter. The court also rejected the petitioner's plea based on a perceived vested right of renewal, citing Section 18 of the Act, which negates any such claim.

Issues: The main issues revolved around the legality of the respondents' decision to withdraw and exclude the L-12/L-12F license category from renewal, and the petitioner's claim of a vested right of renewal.

Ratio Decidendi: The court's decision was based on the nature of trade in liquor as res extra commercium, the provisions of the Delhi Excise Act, 2009, and relevant rules. It emphasized that the State's decision not to issue or renew L-12/L-12F licenses falls within the ambit of Section 16 of the Act, as it is a policy decision and not aimed at any individual defaulter. The court also rejected the petitioner's plea based on a perceived vested right of renewal, citing Section 18 of the Act, which negates any such claim.

Final Decision: The court dismissed the petition, emphasizing that the State's decision not to issue or renew L-12/L-12F licenses falls within the ambit of Section 16 of the Act, as it is a policy decision and not aimed at any individual defaulter. The court also rejected the petitioner's plea based on a perceived vested right of renewal, citing Section 18 of the Act, which negates any such claim.

JUDGMENT

Navin Chawla, J. - This petition has been filed by the petitioner praying for the following reliefs:-

" (a) Issue any appropriate writ, order or directions including a writ of certiorari thereby quashing the impugned Cabinet Decision No.2790 dated 11.12.2019 issued by the Respondent No.1 insofar as it directs across the board penal action against all Licensees of the L-12/L-12F category, and especially against the Petitioner who has not committed any violation in the relevant year i.e. 2019-2020.

(b) Issue appropriate writ, order or direction including a writ of prohibition restraining the Respondent No.1, from implementing the impugned Cabinet Decision bearing No.2790 dated 11.12.2019;

(c) Issue any appropriate writ, order or directions including a writ of certiorari thereby quashing/setting aside the impugned Circular dated 05.02.2020 issued by the Respondent No.2 insofar as it illegally & arbitrarily, excludes L-12/L-12F licensees from the purview of the renewal of their licenses for the year 2020-21 in terms of the Delhi Excise Act and the rules framed thereunder.

Or in the alternative to prayer (c), as above,

Issue any appropriate writ, order or directions including a writ of mandamus thereby directing the Respondent No.2 to follow the procedure for renewal of existing L-12/L-12F Licensees, and further renew them in terms of the Delhi Excise Rules, 2010 for the year 2020-

(d) Issue any appropriate writ, order or direction including a writ of mandamus directing the respondents to renew the L-12/L-12F licenses of the petitioner from the date of the order/interim orders passed by this Hon'' ble Court till 31.03.2021 and continue to renew the same in terms of the Delhi Excise Act, Rules, Regulations and Directions."

2. It is the case of the petitioner that the petitioner was granted a License dated 19.04.2011 by the Delhi Excise Department in the L12/L-12F category for the retail sale of beer and wine in its departmental store. The license was renewed on a year-to-year basis and was last valid till 31.03.2020. There were approximately 125 such licenses issued by the respondents to various licensees in Delhi. The respondents, in September-October, 2019, carried out a check and 41 of such licensees were found to be in violation of the license terms. Importantly, no violation was found in the case of the petitioner or other similarly situated licensees, who were in the majority. Inspite of the same, the respondent no.1 passed a Cabinet Decision No.2790 dated 11.12.2019, impugned in the present petition, directing as under:

"The Council of Ministers considered the note of Pr. Secretary (Finance) and decided as follows:

1. L-12/L-12F license of all departmental stores to be closed w.e.f.20.12.2019 and the license fee shall be refunded as per section 16(2) of the Delhi Excise Act, 2009.

2. Revised terms and conditions for grant of new L12/L-12F licenses to be framed by the Excise Department in the next Excise Policy."

3. Based on the above decision, the respondent no.2 issued an order dated 19.12.2019 against the petitioner, purportedly exercising its power under Section 16(1) of the Delhi Excise Act, 2009 (hereinafter referred to as the '' Act'' ), withdrawing the L-12/L-12F license of the petitioner forthwith. The said order reads as under:

" Whereas, M/s UDI DEPARTMENTAL STORE was granted L-12/L-12F license bearing License ID L12/2011/137 for sale of Beer and Wine in the Departmental Store.

And Whereas the Council of Ministers, GNCTD vide Cabinet Decision No.2790 dated 11.12.2019 conveyed vide letter No.F.3/3/2018/GAD/CN/dsgadiii/5232-42 dated 12.12.2019 has decided to withdraw all L-12/L12F Licenses with effect from 20.12.2019.

Therefore, I, Deputy Commissioner (Excise)/Licensing Authority, in exercise of the powers conferred upon me under the provisions of Section 16(1) of the Delhi Excise Act, 2009,hereby withdraw the L-12/L-12F License in respect of the above mentioned licensee/Departmental Store forthwith. The licen

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