Unilateral extension of a liquor license after its expiry is unlawful and violates statutory provisions and contractual obligations.

JUDGMENT :

Mahendar Kumar Goyal, J.

1. Since this batch of writ petitions share similar facts and common questions of law, they have been heard together and are being decided vide this common order.

2. For reference, relevant facts from the file of S.B. Civil Writ Petition No.4606/2024: Krishna Sharma Vs. State of Rajasthan and Ors. are being taken note of.

3. The petitioner was licence holder to operate a Country Liquor and IMFL/Beer Composite Retail Off Vend i.e. Shop No.1 for Ward No.82-85, Jaipur Municipal Corporation (Greater), Jaipur for the Excise Year 2023-24, i.e., the financial year from 01.04.2023 till 31.03.2024 as per the provisions of the Liquor and Temperance Policy 2022-23 and 2023-24. Life of the licence came to an end on 31.03.2024. Under their new Excise and Temperance Policy 2024-25, the respondents have offered the existing licence holders an option for renewal on fulfillment of certain terms and conditions as detailed in its clause 2. The option was to be exercised within a period of 15 days from the date of its issuance, i.e., 01.02.2024, subject to deposition of the renewal fee and other dues, i.e., security amount, advance annual guarantee amount, and yearly licence fee as per the schedule provided thereunder. Since, the petitioner was not interested in renewal of the licence, she did not exercise the option. So left out shops were put to auction; but, despite conducting the auction 4 times, about 4,000 vends remained unsettled. In these circumstances, the respondents issued the impugned order dated 13.03.2024 whereunder, the existing licence holders like the petitioner whose term of licence was expiring on 31.03.2024, are compelled to continue with the vend for a further period of 3 months, i.e., 01.04.2024 to 30.06.2024 as per the terms and conditions provided under the Excise Policy 2024-2025. It is alleged that this unilateral extension of the licence period is impermissible under the law. It is further alleged that the order impugned dated 13.03.2024 has been passed on application of the Model Code of Conduct (for brevity, “the MCC”) under an order dated 02.01.2024 issued by the Election Commission of India; however, it does not put an absolute embargo on the process of auction for issuance of the liquor licence. It is also averred that vide instruction dated 06.02.2023 issued in tune with the Excise and Temperance Policy for the years 2022-23 and 2023-24, Rajasthan Tourism Development Corporation (for brevity, “the RTDC”), Rajasthan State Beverages Corporation Limited (for brevity, “the RSBCL”) and Rajasthan State Ganganagar Sugar Mills (for brevity, “the RSGSM”) have been given the liberty to operate licenced vends on licence fee system without insistence of any minimum lifting of liquor and the annual guarantee of revenue, which could be adopted for the current excise year as well. It is, therefore, prayed that the order dated 13.03.2024 be quashed and set aside and the respondents be directed to refund the refundable deposits including the security amount and balance advance annual guarantee.

4. The respondents in their reply submitted that as per Clause-II (21)(c) of the MCC, no liquor vend is allowed to be put to auction during its operation even if the process has started. It is stated that upon finding that upto 21.03.2024, i.e., after four rounds of auction, out of total 7665 shops, 4178 shops remained unsettled, closure whereof during the applicability of the MCC may have devastating effect, such as; an increase in the menace of illicit liquor, illegal import from other States, huge revenue loss, the State Government took a conscious decision to grant 3 months extension to all the 4178 licensees whose licence was coming to an end on 31.03.2024. It is averred that the order dated 13.03.2024 is by way of an interim arrangement policy issued to further the object of the existing excise policy 2024-25. It is denied that the order amounts to unilateral extension of the contract inasmuch as the pet