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Rajasthan High Court, Jaipur Bench
Honble P.P. NAOLEKAR & P.K. TEWARI, JJ.
Daljit Singh Choudhary - Appellant
Versus
State of Rajasthan & Ors. - Respondents
D.B. Civil Writ Petition No. 1059 of 1999
Decided On : July 23, 1999
The decision taken by the Government laying down any policy could be challenged if the decision maker does not understand correctly the law that regulated his decision making power. If the policy is irrational, namely wednesbury unreasonableness i.e. the decision of the public authority will be liable to quash or otherwise dealt with by an appropriate order in judicial review proceedings where the court concludes that decision is such that no authority properly directing itself on the relevant law and acting reasonably would have reached and that there is procedural impropriety. It is now well settled that the citizen does not have any fundamental right to carry on trade or business in the liquor. There is nothing in the Act or the Rules whereby the petitioners have a right to carry on business in liquor once the licence is granted to them. In other words the petitioners do not have any right to have their licences renewed. In fact Section 37 of the Rajasthan Excise Act, 1950. Specifically lays down that no person to whom a licence has been granted under the Act shall have any claim to renewal of such licence. The policy decision taken by the Government not to renew the licence of restaurant bar is in accordance with the powers vested in the State in law. The petitioners have failed to show any procedural impropriety in the matter of taking policy decision. The liquor as a beverage is an intoxicating and depressant which is dangerous and injurious to health and is, therefore an article which is inherently harmful. If the State takes steps to reduce and minimize sell of beer and easy access to a place to consume it, taking into consideration and balancing the earning of the exchequer through liquor trade, steps taken in that direction by policy decision would certainly be in a public interest. It is well known fact that the liquor shall be consumed more if it is easily available and there is a comfortable place available for consumption of the same. The restaurant licence is issued for the sale of beer which is to be consumed in the restaurant. In restaurant beer is easily available with the facility to consume it, therefore, the steps taken by the State Government in the direction of reduction of the sale and consumption of the beer is in public interest. The policy decision taken by the Government being in public interest it is not open for this Court to sit on judgment and decide merit or demerit of that policy which is within the domain of executive authority of the State. The policy decision does not suffer with any irrationality or procedural impropriety. (Para 17)
(2). With a view to enact for Rajasthan a uniform law relating to export, import, transport, manufacture, sale and possession of intoxicating liquor the Rajasthan Excise Act, 1950 was enacted and was brought into force with effect from 1.7.1950. Some of the provisions regulating sale and possession of the intoxicating liquor are contained in the following Sections of the Act of 1950. Section 19 of the Act prohibits possession of excisable articles in excess of the prescribed limits otherwise than the permits granted by the Excise Commissioner. Likewise Sections 20 and 21 prohibits sale of excisable articles without licence from the competent authority. Section 24 empowers the Excise Commissioner to grant a licence for the exclusive privilege of manufacture and sale of country liquor, foreign liquor or intoxicating drugs. Section 26 permits the grant of such exclusive privilege to let or assign any portion of his privilege which is subject to the licence by the Excise Commissioner. Section 28 provides for excise duty and Section 31 authorises imposition of restriction on a licence that the licence shall be subject to the payment of fees and shall be subject to such conditions as may be described by the State Government under the Rules. Section 34 gives power to the licensing authority for cancellation or suspension of any licence. Section 37 lays down that no person to whom a licence has been granted under the Act shall have any claim to the renewal of any such licence or to any claim for compensation on the determination or non-renewal thereof. Section 41 is a rule making power for regulating the period and localities for which licence for sale of excisable article may be granted. Procedure to be followed and matters to be ascertained before granting any such licences, prohibiting sale of any excisable article to any person or class of persons, for preventing drunkens or disorderly conduct in or near any licensed premises. Sub-section (3) provides that rule making power shall be exercised with previous publication. The proviso thereto, however, provides that any such rule may be made without previous publication if the State Government considers that it should be brought into force at once.
(3). In exercise of the powers conferred by Section 41 of the Rajasthan Excise Act, 1950 (Rajasthan Act II of 1950) the State Government, has made the Rajasthan Excise (Grant of Hotel Bar/Club Bar/Restaurant Beer Bar Licences) Rules, 1973 (hereinafter referred to as `the Rules of 1973).
(4). It would be useful to reproduce Rule 2 of the Rules of 1973 in its entirety, which reads as under:-
``2. (a) Hotel means all Tourist Bungalows and hotels run by the Department of Tourism and Hotel Corporation of the State Government and the Government of India including Hotels recognised by the Government of India as Heritage Hotels and shall also include any other hotel with at least 20 bedrooms which is adjudged to be of at least Two State Category by the Department of Tourism, Government of India or any other authority authorised specially for this purpose by the Government of India.
(b) Hotel Bar/Club Bar/Restaurant Beer Bar Licence means a ``retail on licence for the sale of foreign liquor granted to a hotel which makes sales to foreign and Indian tourists and visitors staying or residing in it for consumption in a room earmarked for serving liquor or dining hall or drawing room or such other part of the hotel as may be approved by the State Government.
(c) ``Club means a duly registered association of persons for social and recreational purposes or for the promotion of some common object on joint expenses.
(d) ``Club Bar Licence means a licence granted to a club for retail sale of for
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