IMPORTANT POINT
A party is entitled to seek a refund of licence fees if precluded from conducting business due to factors beyond their control, emphasizing the need for the State to act justly.

JUDGMENT :

WP(C) No. 34398/2017 is filed by Parays Holiday Hotels Pvt. Ltd., WP(C) No. 10234/2018 by Broad Bean Hotel, WP(C) No. 10263/2018 by Chola Huts, WP(C) No. 22084/2018 by Hotel Cloud-9 and WP(C) No. 254/2019 by N.Satheeshkumar, seeking refund of an amount of Rs. 4,20,000/- each, paid on 31.3.2017, 28.3.2017, 29.3.2017, 28.3.2017, and 29.3.2017 respectively, towards the renewal of the FL-11 licence issued for the privilege of possession and vending of Beer/Wine for consumption in the premises, for the licensing year 2017-2018. WP(C) No. 10308/2018 is filed by Rojan Chacko, who paid Rs.4,70,000/- for the renewal of the FL-11 licence for the year 2017-2018.

2. The refund is claimed on the ground that the said licences were neither renewed nor rendered operational in the Abkari Year 2017-2018, owing to the embargo imposed by the Hon’ble Supreme Court in The State of Tamil Nadu & Ors. v. K.Balu & Anr. [ (2017) 2 SCC 281 ], wherein a nationwide prohibition was placed on the issuance and renewal of liquor licences— including FL-11 licences—for establishments situated within 500 metres of National or State Highways.

3. Subsequently, the Hon’ble Supreme Court, in Arrive Safe Society of Chandigarh v. Union Territory of Chandigarh & Anr. [ (2018) 13 SCC 133 ] clarified that such prohibition would not apply to establishments located within municipal or urban limits, even if the roads abutting such establishments were technically classified as highways. Pursuant to the said clarification, and in light of the policy revision introduced by the Government of Kerala vide G.O. (MS) No.43/2017/TD dated 13.6.2017, whereby 3-star and 4-star classified hotels were permitted to obtain FL-3 licences. The petitioners availed the benefit of the revised policy and remitted an amount around Rs.28,80,000/- towards FL-3 licence fees, which were duly accepted by the authorities and corresponding licences were issued.

4. The petitioners contend that the respondents, even after accepting the licence fee, neither renewed the FL-11 licence nor permitted the petitioner to conduct the FL-11 licence (vending of beer/wine) even for a day during the Abkari Year 2017-2018. The petitioners contended that the respondents are duty-bound to give back the amount or transfer the licence fee accepted from the petitioners. It is also contended that the respondents ought to have refunded the FL-11 licence amount to the petitioners immediately on the date when the petitioners remitted the licence fee for renewing the petitioners' FL-3 licence. Despite repeated requests and representations made to the 3rd respondent, to refund/adjust the said amount paid for the FL-11 licence renewal, the same was not allowed. It is argued that it is not on account of any fault of the petitioners that they were disabled from conducting the FL-11 licence beer/wine parlour. The petitioners were precluded from conducting the same because of the judgment of the Apex Court, and in the said circumstances, the respondents are not justified in refusing a refund/adjustment of the amounts.

5. The petitioner in WP(C) No. 3150/2021 contends that she had remitted an amount of Rs. 32,30,000/- towards renewal of the FL-3 licence for the Abkari Year 2020-2021, which included Rs.30,00,000/- as licence fee and Rs. 2,30,000/- towards service charges in special areas. However, due to the outbreak of the COVID-19 pandemic and the consequent lockdown imposed across the State with effect from 31.3.2020, the petitioner was unable to operate the Bar till 22.12.2020. It is the specific grievance of the petitioner that although the licence was renewed on 31.5.2020, she was effectively deprived of the right to conduct business for a substantial portion of the licence period. The petitioner further submits that she was made to believe that, pursuant to the amendment to the FL Rules dated 14.5.2020 introducing Rule 3(3E), the retail sale of liquor would be permitted through separate counters within the licensed premises.