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2012 Supreme(Ker) 709

HIGH COURT OF KERALA
C.N. RAMACHANDRAN NAIR & C.K. ABDUL REHIM, JJ.
State of Kerala Represented By Secretary To Government Taxes & Others
Versus
Xaviers Residency Represented By Its Managing Director & Others
WA. Nos. 1516 of 2012, 1692 of 2012 & 1553 of 2012
Decided on : 27-09-2012

Advocates appeared:
For the Petitioners:G.P. George Mecheril, Advocate.
For the Respondents:R1, A. Sudhi Vasudevan, R3, A.G. Basil Attipetty, R2, Molly Jacob, T.K. Rabia Beegam, Jobi. A. Thampi, M. Kabani Dinesh, T.M. Mohammed Yousuff (Sr.), Aysha Youseff, R4 to R6, M.G. Karthikeyan, R7, Sibi Karun, Advocates.

Headnote:Foreign Liquor Rules, (Kerala), Rule 28(1) (as amended on 18.4.2012) - Constitution of India, 1950, Article 14 - Fixation of the business of hotel and bar was violative under article 14 of Indian constitution-prohibition of liquor that ids not total prohibition.

Judgement Key Points

Key Points: - The differentiation in working hours for bars based on location (Panchayat/Municipal vs Corporation areas) was struck down as violative of Article 14 (!) (!) . - Earlier rules allowed bars with FL-3 licence to sell liquor from sunrise to midnight, with amendments prescribing different hours for different areas (!) . - The court examined the government's policy of reducing liquor consumption through restricted working hours (!) (!) . - Judicial review under Article 226 was exercised to examine the legality of policy decisions when implemented through rules (!) (!) . - The court suggested uniform working hours for all bar hotels, with possible exception for foreign tourists (!) (!) .

What is the validity of differentiation in working hours for bars based on location under Article 14 of the Constitution?

What are the permissible working hours for bars serving foreign liquor under the Foreign Liquor Rules?

What is the scope for judicial review of policy decisions related to liquor prohibition under Article 226?


JUDGMENT

Ramachandran Nair, J.

1. Hotels and restaurants in Kerala with FL-3 licence were allowed to sell liquor in the Bar under Rule 28 of the Foreign Liquor Rules (hereinafter called "the Rules") from sun rise to midnight i.e. from 6 a.m. to 12 p.m. However, an amendment was introduced to this Rule with effect from 18.4.2002 prescribing different working hours for FL-3 Hotels/Restaurants functioning in Panchayat and Municipal areas on the one side and such Hotels/Restaurants functioning in Corporation limits on the other side. While in Municipal and Panchayat areas Bar Hotels were allowed to sell liquor from 8' O clock in the morning till 11.00 in the night, for Hotels/Restaurants in Corporation area, time fixed for business was from 9' O clock in the morning to 12.00 in the night. This Rule was challenged by the Hotels in Corporation areas contending that fixation of different time for commencement of business is discriminatory and violative of Article 14 of the Constitution. The learned Single Judge allowed the writ petitions holding that the classification made by the Government based on location of hotels i.e. between Panchayat/Municipal areas on the one side and the Corporation on the other side, has no rational nexus with the object of the legislation i.e. to achieve reduction of availability of liquor in the State to reduce consumption which according to the State is part of it's Abkari policy. The learned Single Judge after holding that the Rule is violative of Article 14 of the Constitution of India, left to the Government to decide uniform working hours for Bar Hotels functioning in Panchayat/Municipal areas and also in Corporation areas. It is against this judgment two Writ Appeals are filed by the State and another by a Hotel owner. We have heard Senior Government Pleader for the State, counsel appearing for the appellant in the connected appeal and also counsel appearing for respondents and the various counsel appearing for the parties impleaded.

2. When the appeals came up for hearing on 21.8.2012, we felt that if Government is earnest about implementation of Abkari policy in the State, which according to the Government is possible by reducing working hours of Bar Hotels and since the learned Single Judge also directed the Government to fix rationally uniform working hours for Bar Hotels all over Kerala, the right thing that Government should do is not to permit sale of liquor in any Bar Hotel during working hours i.e. up to 5 p.m. in the State. Even though through interim order dated 21.8.2012 we sought the opinion of the Government before final decision in the appeals, Government has filed a report stating that a policy decision can be taken by the Government "after consultation with stakeholders and assessing the needs of the society". Even though Government has accepted the suggestion of the High Court that prohibition of sale of liquor during working hours until 5' O clock in the evening will certainly reduce the consumption of liquor in the State, Government does not want to hurry up a decision and has sought time from his court to take decision and communicate the same. However, we do not think we should wait for decision by the Government because fixation of working hours is always a policy matter which is within the domain of the Government on which court has no say. Moreover, from Media reports on judgments of this court pertaining to Abkari cases, we notice that Government is very sensitive to the High Court expressing views on Abkari policy of the Government. There can be no controversy that not only in Abkari matters, policy decisions are always with the Government and court has no role in it. However, when the policy is enacted in the form of law, whether as Act or Rule, and when the validity of it is questioned before the High Court, the High Court has a duty in exercise of judicial review to examine whether the policy translated into law has transgressed the limits of the Constitution justifyi





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