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2022 Supreme(Raj) 596

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
PANKAJ BHANDARI, SAMEER JAIN, JJ.
Nitesh Kumar Verma S/o Banwari Lal Verma – Petitioner
Versus
The State of Rajasthan – Respondent
D.B. Civil Writ Petition Nos. 4928, 4929 of 2022
Decided On : 05-05-2022

Advocates appeared:
For the Petitioners: Mr. R.B. Mathur, Mr. Nikhil Simlote, Mr. Amit Malani, Mr. Dheeraj Palia.
For the Respondents: Mr. M.S. Singhvi, Mr. Tarang Gupta, Mr. Pranav Bhansali, Mr. Darsh Pareek.

Headnote:

Constitution of India, 1950 – Article 14, 226 – Rajasthan Excise Act, 1950 – Section 42(d), 74 – Power of High court to issue certain writs – Writ petitions have been filed by petitioners seeking declaration of action of respondents in denying renewal of their liquor shops due to late payment of advance annual guarantee amount as violative of Art. 14 of Constitution of India as well as to declare Clause 2.5.6 of Excise Policyas illegal, unconstitutional, arbitrary and to strike down same with further directions to respondents to renew license of petitioner respectively with 12 percent addition as per first clause of 2.5.3 and not to discriminate only on basis that petitioners have delayed Advance Guarantee Amount – Held, Reliance placed by petitioners on provisions of Rule 72-A of Excise Rules is also misconceived in light of their own undertaking and Clause 2.5.6 of new Excise Policy – Petitioners have come before this Court at the belated stage only after issuance of Annexure-7 whereas the Excise Policy in hand was issued – Contract of petitioners is also not worth consideration rather essential documents were concealed from Court – Equitable jurisdiction can only be applied when petitioners come with clean hands – Apex Court has time and again held that there is no equity against fraud – Ordered Accordingly.

JUDGMENT :

SAMEER JAIN, J.

1. Both these writ petitions have been filed by the petitioners seeking declaration of the action of respondents in denying the renewal of their liquor shops due to late payment of advance annual guarantee amount as violative of Art. 14 of the Constitution of India as well as to declare Clause 2.5.6 of the Excise Policy 2022-23 as illegal, unconstitutional, arbitrary and to strike down the same with further directions to the respondents to renew license of the petitioner at Rs. 93,67,336/- and Rs. 1,56,35,560/- respectively with 12 percent addition for the year 2022-23 as per first clause of 2.5.3 and not to discriminate only on the basis that the petitioners have delayed Advance Guarantee Amount by two days.

2. The case of the petitioner as per them is that they applied for renewal of license for composite liquor shop. For the year 2021-22, they were highest bidders and the shops were allotted to them and sanction was issued. As per Clause 2.5.3 of the new Liquor Policy of 2022-23 and 2023-24, the petitioners gave option to renew their license as per the table mentioned therein and the petitioners were offered the renewal as per Clause 2.5.3.

3. As per pleadings of the petitioners, they were required to get renewal only if they deposit the security amount, renewal fee, advanced guarantee amount and 50% of the annual license fee by the due date. The petitioners were interested in renewal of their shops and in the light of the conditions, they paid the security amount, renewal fee by the specified date/extended dates.

4. It is claim of the petitioners that the advance guarantee amount was required to be paid by the due date i.e. 19th March, 2022 but due to non-functioning of server, the petitioners could deposit the same by 21st March, 2002 as on 19th March, 2022, there was a holiday and merely because of delay of two days in payment of the annual guarantee amount, which was beyond their control, their case has not been considered for renewal and on account of the same, license of their shops has been cancelled on 22nd March, 2022 by the respondents while relying upon Clause 2.5.6 of the new Excise Policy and therefore, the action of the respondents has been assailed alleging the same to be arbitrary, irrational, illegal and ulra-vires to the provisions of the Rajasthan Excise Act, 1950 as well as the Rules of 1956 framed thereunder.

5. Learned counsel for the petitioners submitted that in the year 2020-21, the Policy for Allotment of Liquor Shops was by lottery mode. It was only in the year 2021-22 that e-auction qua the highest bidder was introduced. As per the new Excise Policy of 2022-23 and 2023-24 dated 05.02.2022, for renewal of license, the renewal fee and security amount has to be deposited mandatorily in time which has been complied with by the petitioners within time.

6. Learned counsel for the petitioners has drawn attention of this Court towards Clause 2.5.6 of the new Excise Policy 2022-23 and 2023-24 which reads as under:

    ^^vuqKk/kkjh }kjk fu/kkZfjr vof/k esa uohuhdj.k Qhl o /kjksgj jkf'k ds vUrj dh jkf'k tek djkus ds ckn vfxze okf"kZd xkj.Vh rFkk okf"kZd ykbZlsUl Qhl dh fu/kkZfjr jkf'k tek ugha djkus ij mldk uohuhdj.k fujLr dj uohuhdj.k Qhl o /kjksgj jkf'k tCr dj yh tk;sxhA**

7. Learned counsel has also drawn attention of this Court upon Annexure-7 dated 22.03.2022 issued by the respondents wherein while relying upon Clause 2.5.6 of the new Excise Policy 2022-23 and 2023-24, it has been ordered that for non-depositing of due advance guarantee amount by 19th March, 2022, the amount of renewal fees, security amount and annual license fee amount of the petitioners is forfeited. Learned counsel for the petitioners submitted that such action of the respondents in not renewing the license of the petitioners is de-hors the Excise Rules and the provisions of the Excise Act more particularly, Section 42(d) and Section 74. It is further submitted that the petitioners have made substantial compliance by

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