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2026 Supreme(Gau) 959

THE GAUHATI HIGH COURT (THE HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH)
Manish Choudhury, J.
Sri Sudipto Sekhar Paul - Petitioner
Versus
State of Assam represented by Commissioner & Secretary, Excise Department - Respondents
Writ petition [c] NO. 5702 of 2022
Decided On : 31-03-2026

Advocates Appeared:
For the Petitioner:Mr. A. Khanikar, Advocate
For the Respondent:Mr. R.R. Gogoi, Standing Counsel, Mr. M. Chetia, Junior Government Advocate, Mr. G.N. Sahewalla, Senior Advocate and Mr. H.K. Sharma, Advocate

A statutory authority must exercise its discretion independently as mandated by law. Abdicating this decision-making power to an external, non-statutory functionary, or acting solely at the behest of such an authority, renders administrative decisions patently illegal and violates fundamental principles of fairness and the rule of law.

Headnote:(A) Excise Act - Retail licensing - Grant of license by statutory authority - Licensing authority is vested with the power and duty to evaluate applications independently and transparently - Executive instructions cannot override or supplant statutory mandates. (Paras 14, 30, 32)

(B) Administrative Law - Statutory authority - Abdication of power - Licensing authority acting at the behest of an external functionary having no statutory role renders the entire selection process vitiated, arbitrary, and illegal in view of Article 14 of the Constitution. (Paras 27, 30, 33)

Facts of the case:
The petitioner challenged the process of granting a retail liquor license. An advertisement invited applications for the license, to which the petitioner and other eligible candidates applied. However, the licensing authority, instead of independently evaluating the merits of the applications as required by law, forwarded them to an external, non-statutory functionary for recommendation. Following this external recommendation, the licensing authority sanctioned the license to the recommended candidate without conducting an independent comparative assessment of the applicants, prompting the present grievance.

Findings of Court:
The court observed that the licensing authority failed to discharge its statutory obligation, opting instead to act solely on the directive of an authority not recognized by the relevant statute. The court held that this reliance on external, non-statutory input effectively resulted in an abdication of the authority's mandated decision-making power, leading to an unfair and discriminatory selection process.

Issues: The main issues were whether a statutory licensing authority can abdicate its discretionary power in favor of an external functionary and whether executive instructions can validly override or supplement the explicit provisions of the governing statute regarding the selection process.

Ratio Decidendi: Statutory authorities are legally bound to exercise their discretion personally and according to the law. Any decision made at the behest of an external person or body having no statutory role constitutes an illegal abdication of duty. Administrative guidelines or executive protocols cannot be used to bypass the legal mandate placed upon the specified authority, nor can they justify an arbitrary and non-transparent selection process.

Result: Writ petition allowed; the entire process of granting the license is set aside and quashed; the license issued to the respondent is cancelled with immediate effect.

Table of Content
1. overview of the petition, factual dispute regarding licence grant, and contentions of the parties. (Para 1 , 2 , 3 , 4 , 5 , 6 , 8 , 9)
2. chronological history of the administrative process, including cabinet directives and improper involvement of the guardian minister. (Para 10 , 11 , 12 , 13 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23)
3. analyses of the assam excise rules, 2016 vs. the non-statutory standard operating procedure (sop) regarding licensing authority. (Para 14 , 24 , 25 , 26 , 27 , 28 , 29)
4. statutory authorities cannot abdicate discretion to non-statutory entities; administrative actions must be transparent and merit-based. (Para 30 , 31 , 32 , 33 , 34)
5. final order quashing the illegal licence and directing fresh processing if required. (Para 35 , 36)

JUDGMENT :

Manish Choudhury, J.

Invoking the extra-ordinary and discretionary jurisdiction of this Court under Article 226 of the Constitution of India, the petitioner has preferred the instant writ petition for a direction to the respondent authorities in the Excise Department, Government of Assam to complete the process of issuance of Indian-Made Foreign Liquor [IMFL] ‘Off’ retail licence for Sonai area of District – Cachar, Assam in compliance with the terms and conditions laid down in a Public Notice dated 12.11.2021 in a fair and transparent manner and strictly in terms of the provisions of the Assam Excise Act, 2016, as amended, and the Assam Excise Rules, 2016, as amended.

2. The genesis of the lis is a Public Notice bearing no. CXE.09/2017/194 dated 12.11.2021 published under the hand of the respondent no. 3. The Notice was published in daily newspapers vide Janasanyog/D/9489/2021. By the Notice, applications were invited from interested and intending eligible persons in the prescribed format for issuance of fresh IMFL ‘Off’ retail licences at two localities, namely, [i] Dholai and [ii] Sonai in the district of Cachar, Assam.

3. The case of the petitioner is that in response to the Notice, he being an inhabitant of Silchar Town, submitted the application for retail IMFL ‘Off’ licence for the advertised location, Sonai at Silchar with all the relevant documents as per the terms and conditions laid down in the Notice and in conformity with the Check-List contained in the prescribed format prepared by the Excise Branch, O/o the District Commissioner, Cachar, Silchar.

4. It is the further case of the petitioner that he came to learn that the respondent no. 5 had also submitted his application for the licence for the location at Sonai, Silchar. When the petitioner came to learn that the Office of the District Commissioner, Cachar forwarded the application of the respondent no. 5 for approval to the higher authorities, the petitioner submitted an Objection before the respondent no. 2 on 29.06.2022 as the respondent no. 2 being the District Collector, is the Licencing Authority for issuance of IMFL ‘Off’ retail licences under the provisions of the Assam Excise Rules, 2016, as amended. When the Objection dated 29.06.2022 requesting not to allot the IMFL ‘Off’ retail licence to the respondent no. 5 at Sonai did not evoke any response, the petitioner submitted an application under the Right to Information Act, 2005 [‘the RTI Act’, for short] before the respondent no. 2 on 21.07.2022 seeking status of his application for grant of the IMFL ‘Off’ licence at Sonai submitted pursuant to the Public Notice dated 12.11.2021. In response to the RTI Application of the petitioner, the respondent no. 4 provided the Information under the RTI Act vide an Office Letter no. CXE.[P].23/2007/Pt/171 dated 17.08.2022.

5. In the Information provided on 17.08.2022, it was mentioned that the application of the petitioner and two other applications were forwarded to the Secretary to the Guardian Minister of Cachar District, Dispur vide an Office Letter dated 14.12.2021 as per a Government Letter bearing no. EX.145/2017/82 dated 25.10.2021 for appraisal and necessary approva

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