Judges : A.R.LAKSHMANAN,K.NARAYANA KURUP
Jayadevan - Appellant
Versus
Varghese - Respondent
Case No : W.A. No. 1116 of 1997
Decided On : 12/09/1998
Advocates Appeared :
K. Ramakumar, M. Ramachandran, P. Ramakrishnan & M.C. John For Appellant Sudhi Vasudevan, Bindu Mohandas & Government Pleader (Alexander Thomas) For Respondents
Renewal - Foreign Liquor Rules - R.13(3), Proviso to R.14 - The court held that a defunct licence can be renewed under the relevant provisions of the Foreign Liquor Rules upon payment of the fee as prescribed under the said Rules. The court also emphasized that a renewal application in respect of a defunct licence is maintainable on payment of an additional rental for each year of defunction, over and above the annual rental for the year of renewal. The court referred to previous judgments and a Division Bench decision to support its interpretation of the rules. The court also highlighted the principle that the State cannot discriminate between citizens carrying on business in liquor. The court rejected the contention that the defunct licence cannot be renewed due to the hotel not possessing two-star facilities. The court also allowed proportionate remission of rental for the period during which the licensee could not conduct business due to an interim stay.
Fact of the Case:
The licensee, who held an F.L. 3 licence to run a bar, could not renew the licence due to financial difficulties. The court considered whether a defunct licence can be renewed under the relevant provisions of the Foreign Liquor Rules.
Finding of the Court:
The court found that a defunct licence can be renewed under the Foreign Liquor Rules upon payment of the prescribed fee and additional rental for each year of defunction. The court also emphasized the principle that the State cannot discriminate between citizens carrying on business in liquor and allowed proportionate remission of rental for the period of an interim stay.
Issues: The main issue was whether a defunct licence can be renewed under the relevant provisions of the Foreign Liquor Rules.
Ratio Decidendi: The court's decision was based on the interpretation of the relevant provisions of the Foreign Liquor Rules, previous judgments, and a Division Bench decision. The court also emphasized the principle that the State cannot discriminate between citizens carrying on business in liquor and allowed proportionate remission of rental for the period of an interim stay.
Final Decision: The court directed the renewal of the defunct licence on payment of a sum of Rs. 25,000 for each year of defunction and the proportionate rental for the year 1998-99. The court confirmed the judgment of the learned single judge and dismissed the Writ Appeal.
K. Narayana Kurup, J.
One Varghese who figures as respondent in the Writ Appeals and the Original Petitions (who will be hereinafter referred to as the licensee for the sake of convenience) was in possession of an F.L. 3 licence to run a bar at his hotel "Hotel Seven Hills" at Trichur issued pursuant to Ext. P1 order of the Board of Revenue dated 19.5.1984. The licence is seen renewed only upto March, 1986. Thereafter the licensee could not renew the licence for the period commencing from 1-4-1986 onwards due to financial difficulty. When his financial position improved, he submitted an application for renewal of licence as provided in the proviso to R.14 of the Foreign Liquor Rules. However, the Board of Revenue as per order dated 30.12.1996 rejected the said application on the ground that there is no provision in the Foreign Liquor Rules for the renewal of a cancelled licence. Aggrieved thereby, the licensee moved this Court in O.P. No. 8081/97 which was disposed of by the judgment dated 16.5.1997 directing renewal of the licence on condition that he pays a sum of Rs. 25,000/- each for every year of defunction within a period of two weeks from the date of receipt of a copy of the judgment and on such payment the Board of Revenue shall renew the licence within the said period. The aforesaid direction is impugned in Writ Appeal Nos. 1116/97 and 1146/97 at the behest of leave granted appellants who were not parties to the original petition.
2. O.P. No. 10081/97 is filed by an unregistered Samithi to call for the records relating to Exts. P13 and P14 proceedings of the Government of Kerala and Board of Revenue respectively according sanction for renewal of F.L. 3 licence and directing the Asst. Commissioner to renew the F.L. 3 licence in favour of the licensee in the existing building on remittance of the additional rental for 11 years (Rs. 25,000/- for each year of defunction) over and above the rental for 1997-98 of Rs. 10 lakhs, and for other reliefs. O.P. No. 10132/97 is another writ petition filed by one P.P. Gopalakrishnan as convener of "Madya Vilpana Sala Virudha Samithi", Trichur praying for the issuance of a writ of certiorari to quash all proceedings for sanctioning of a licence in favour of the licensee and for a declaration that the Asst. Excise Commissioner has no jurisdiction to grant such licence in favour of the licensee and for other reliefs.
3. Since common question arises for consideration in the Writ Appeals and the Original Petitions, they are being disposed of by a common judgment treating Writ Appeal No. 1116/97 as the main case so much so, the fate of the rest of the cases will depend upon the outcome of this Writ Appeal.
4. W.A. No. 1116/97: This appeal at the instance of a person who is not a party to the original petition is directed against the judgment of the learned single judge in O.P. No. 8081/97 directing the Board of Revenue to renew the F.L. 3 licence in favour of the licensee on condition that he pay s a sum of Rs. 25,000/- for each year of defunction. The writ appeal is at the instance of a stranger (who was not a party to the writ) after obtaining leave of the Court. Pursuant to Ext. P1 order of the Board of Revenue, the licensee was granted Foreign Liquor Licence No. 7/84-85 to run a Bar at his hotel "Hotel Seven Hills", Trichur. After obtaining the licence pursuant to Ext. P1 order of the Board of Revenue, the licensee started functioning the Bar at the said hotel. The licence was renewed upto March, 1986. Since the licensee could not renew the licence for a period commencing from 1.4.1986 for the period 1986-87 due to financial difficulties his licence became defunct on and from 1.4.1986 which was thereafter deposited with the Asst. Excise Commissioner, Trichur. When he attained financial soundness, he submitted an application dated 27.9.1996 for renewal of the licence as provided in proviso to R.14 of the Foreign Liquor Rules. The Board of Revenue as per Ext. P2 rejected the sai
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