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2007 Supreme(Ker) 619

Judges : H.L.DATTU,K.T.SANKARAN
Anjaly Babu, Kunnathunadu Taluk - Appellant
Versus
The State of Kerala, Represented by the Chief Secretary, Thiruvananthapuram - Respondent
Case No : W.P(C).Nos.8244 of 2007, 8486 of 2007, 8624 of 2007, 8851 of 2007, 9249 of 2007, 9259 of 2007, 9271 of 2007, 9276 of 2007, 9302 of 2007, 8585 of 2007, 8025 of 2007, 8004 of 2007, 8005 of 2007, 9165 of 2007, 9177 of 2007, 9205 of 2007, 8599 of 2007, 9216 of 2007, 8936 of 2007, 9238 of 2007, 10367 of 2007 and 23770 of 2007
Decided On : 11/29/2007
Advocates Appeared :
For the Petitioners : R. Ramakumar, Benny Antony Parel, Advocates. For the Respondents: C.P. Sudhakara Prasad, Advocate General, Biju Manohar, Govt. Pleader.

Headnote:

The Kerala High Court upheld the State Government's new Abkari Policy for the excise year 2007-08, which gave preference to Toddy Workers Cooperative Societies for the privilege of vending toddy in certain districts and ranges. The Court held that the policy was not discriminatory or arbitrary, and that the State Government had the power to evolve a policy for the grant of exclusive privilege of vending toddy.

Fact of the Case:

The State Government of Kerala introduced a new Abkari Policy for the excise year 2007-08, which gave preference to Toddy Workers Cooperative Societies for the privilege of vending toddy in certain districts and ranges. Several individuals and Toddy Shop Workers and Toddy Tappers Co-operative Societies challenged the policy, arguing that it was discriminatory and arbitrary, and that it violated their fundamental rights under the Constitution of India.

Finding of the Court:

The Kerala High Court upheld the State Government's new Abkari Policy for the excise year 2007-08. The Court held that the policy was not discriminatory or arbitrary, and that the State Government had the power to evolve a policy for the grant of exclusive privilege of vending toddy. The Court noted that the policy was based on the fact that the Toddy Workers Cooperative Societies had performed well and had made considerable profit in the business during the previous excise year.

Issues: 1. Whether the State Government's new Abkari Policy for the excise year 2007-08 was discriminatory or arbitrary. 2. Whether the State Government had the power to evolve a policy for the grant of exclusive privilege of vending toddy.

Ratio Decidendi: 1. The Court held that the policy was not discriminatory or arbitrary because it was based on the fact that the Toddy Workers Cooperative Societies had performed well and had made considerable profit in the business during the previous excise year. The Court also noted that the policy was introduced in a phased manner, and that the State Government had the power to evolve a policy for the grant of exclusive privilege of vending toddy. 2. The Court held that the State Government had the power to evolve a policy for the grant of exclusive privilege of vending toddy under Section 18A of the Abkari Act, which authorizes the Government to grant to any person or persons the exclusive privilege of vending toddy on such conditions and for such period as it deems fit.

Final Decision: The Kerala High Court upheld the State Government's new Abkari Policy for the excise year 2007-08, which gave preference to Toddy Workers Cooperative Societies for the privilege of vending toddy in certain districts and ranges. The Court held that the policy was not discriminatory or arbitrary, and that the State Government had the power to evolve a policy for the grant of exclusive privilege of vending toddy.

Judgment :-

H.L. Dattu, C.J.

Toddy contractors, individual licencees of Toddy Shops, and members of Toddy Workers Welfare Fund Act, who are interested in securing the right to conduct the toddy shops in certain areas in the State have approached this Court, inter alia questioning the Abkari Policy of the State Government for the excise year 2007-2008, and the notifications issued by the State Government amending certain provisions of Kerala Abkari Shops Disposal Rules, 2002.

2. The learned Single Judge while entertaining the writ petitions had granted an interim order of stay, staying the abkari policy of the State Government for the excise year 2007-2008 and also the order giving preference to certain Co-operative Societies in certain ranges in certain district.

3. The correctness or otherwise of the interim order passed by the learned Single Judge was questioned in batch of Writ Appeals filed both by the State Government and certain other individuals before a Division Bench of this Court. The Division Bench by its order dated 28th day of March, 2007 has stayed the interim order passed by the learned Single Judge.

4. Aggrieved by the interim orders so passed, the individuals who had approached the learned Single Judge had carried the matter before the Apex Court by filing Special Leave Petitions. The Supreme Court, by its order dated 5th April, 2007 in S.L.P.Nos.6316, 6322, 6317, 6360, etc. of 2007 has disposed of the Special Leave Petitions and further has directed this Court to hear the writ petitions and dispose of the same on merits as early as possible. The order passed by the Apex Court requires to be extracted, for the reason, that there is a observation in the order, that, if any right is created during the pendency of the appeals, the same will be subject to the result of the writ petitions. The order passed by the Apex Court is as under:

“Permission to file special petition in SLP (C)… CC.No.3477/2007 is granted.

Having heard learned counsel we are of the view that the impugned policy affects large number of persons in the State. The matter involves important question of public importance. In the circumstances, we request the High Court take up the matter, if possible, in the week commencing from 9th April, 2007.

We are informed that pleadings are also ready in the matter, if not, the State will do so and as for as the respondents are concerned, the same will be done immediately. However since the impugned orders are interim orders at this stage we do not wish to interfere. However it is made clear that the rights created, if any, during the interregnum will be subject to the result of the writ petition. Observations made in the impugned order at the interim stage shall be treated as tentative and they shall not come in the way of either parties herein at the final hearing of the writ petition.

If possible, we would request the Hon’ble the Chief Justice of Kerala High Court to place the matters before the Division Bench as in our view the matter involves question of public importance.”

5. For the excise year 2007-2008, the State Government has notified its abkari policy by G.O.(Ms)No.34/07/TD dated 1st March, 2007. The policy would provide for disposal of toddy shops in groups consisting of five to seven shops by licensing system. Unsold shops will be entrusted to Co-operative Societies as well. The other important steps that is taken in the Government policy is that, while selling the toddy shops, preference will be given to those licensees who have conducted toddy shops during the preceding three years. The licensees implicated in abkari cases and subsequently exonerated by the courts will also be given preference. No individual will be considered for granting of licence, if abkari offences other than u/s.56 of the Abkari Act is registered. Another clause in the abkari policy that requires to be noticed is, that the State Government would ensure the prompt payment of government dues, welfare fund and wages of employees, as




































































































































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