K.T. Sankaran, J.

1. The Abkari Policy for the year 2014-15 and the consequent amendment of the Foreign Liquor Rules were challenged in a batch of Writ Petitions by two star, three star, four star and heritage hotel owners and unclassified hotel owners. The learned Single Judge as per the judgment dated 30.10.2014 in Xavier's Residency v. State of Kerala (2014 (4) KLT 419), dismissed the Writ Petitions in so far as they related to the challenge against Abkari Policy 2014-15 by the hotels classified as two star and three star and by hotels having no classification. The learned Single Judge set aside that part of the Abkari Policy, to the extent it excludes hotels having four star and heritage category from the eligibility to be granted FL-3 licence under the Foreign Liquor Rules, as violative of Article 14 of the Constitution. The consequential amendments to the Foreign Liquor Rules as well as the proceedings of the Excise Commissioner cancelling the licence of such hotels were also set aside. The Abkari Policy 2014-15 was sustained in all other respects. Challenging the judgment of the learned Single Judge, the two star, three star and unclassified hotel owners filed Writ Appeals. Similarly, Government of Kerala filed Writ Appeals against the judgment of the learned Single Judge in so far as it relates to the setting aside of the policy and consequential amendment in respect of four star and heritage category hotels. In some of the Writ Petitions, the 'Madyavirudhasamithi' and in one of the Writ Petitions Sri. T.N. Prathapan, a Member of the Legislative Assembly, got themselves impleaded. At the stage of Writ Appeals, the Confederation of Accredited Tour Operators got themselves impleaded in W.A. No. 1554 of 2014.

2. The Abkari Act, 1077 was initially passed by His Highness the Maharaja of the erstwhile State of Cochin on 5th August, 1902. The Act was later on extended to the entire State of Kerala by Act 10 of 1967. The Foreign Liquor Rules were framed in exercise of the powers conferred by the Abkari Act to deal with the grant of licence to vend Indian Made Foreign Liquor (IMFL). Licences to conduct retail sale in liquor in bottles were being auctioned by the State to private parties, earlier in point of time. Later, that system was changed and the privilege of conducting retail sale in liquor was granted exclusively to the Kerala State Beverages (Manufacturing & Marketing) Corporation Ltd. (for short 'Beverages Corporation), Kerala State Civil Supplies Corporation Ltd. and the Kerala State Co-operative Consumer's Federation Ltd. The licensees holding Foreign Liquor Licence are entitled to purchase the stock of foreign liquor from the Beverages Corporation. The Government used to formulate abkari policy from time to time. Based on those policies, amendments were brought to the Abkari Act and the Foreign Liquor Rules. In the year 1992, the Government decided to restrict grant of FL-3 licence to only hotels having two star and above classification. In the year 1996, the Government framed an abkari policy banning sale of arrack in the State with effect from 1.4.1996. In 2002, an amendment was brought to Rule 13 of the Foreign Liquor Rules restricting grant of FL-3 licence to only hotels having three star and above classification. As per notification dated 20.2.2002, the last proviso to sub-rule (3) of Rule 13 of the Foreign Liquor Rules was substituted by the following proviso: "provided that no new licences under this rule shall be issued." Again with effect from 1.4.2002, the policy was changed and the ban for the issue of fresh licences was removed by deleting the proviso which was inserted by the notification dated 20.2.2002. In continuation of the policy of the Government to reduce sale and distribution of liquor, abkari policy of 2011 was announced restricting issue of FL-3 licences to only hotels having fou