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2025 Supreme(Raj) 2699

HIGH COURT OF JUDICATURE FOR RAJASTHAN, BENCH AT JAIPUR
SAMEER JAIN, J.
Atar Singh, S/o. Har Kishan - Petitioner 
Versus
The State Of Rajasthan, Through Secretary, Finance Department – Respondent 
S.B. Civil Writ Petition No. 11294 of 2025 Connected With S.B. Civil Writ Petition No. 1980 of 2025, S.B. Civil Writ Petition No. 11155 of 2025, S.B. Civil Writ Petition No. 11215 of 2025, S.B. Civil Writ Petition No. 11236 of 2025, S.B. Civil Writ Petition No. 11323 of 2025, S.B. Civil Writ Petition No. 701 of 2025, S.B. Civil Writ Petition No. 702 of 2025, S.B. Civil Writ Petition No. 1649 of 2025, S.B. Civil Writ Petition No. 1869 of 2025, S.B. Civil Writ Petition No. 2359 of 2025, S.B. Civil Writ Petition No. 2895 of 2025, S.B. Civil Writ Petition No. 2896 of 2025, S.B. Civil Writ Petition No. 4036 of 2025, S.B. Civil Writ Petition No. 11097 of 2025, S.B. Civil Writ Petition No. 11102 of 2025, S.B. Civil Writ Petition No. 11149 of 2025, S.B. Civil Writ Petition No. 11186 of 2025, S.B. Civil Writ Petition No. 11205 of 2025, S.B. Civil Writ Petition No. 11208 of 2025, S.B. Civil Writ Petition No. 11218 of 2025, S.B. Civil Writ Petition No. 11293 of 2025, S.B. Civil Writ Petition No. 11305 of 2025, S.B. Civil Writ Petition No. 11371 of 2025, S.B. Civil Writ Petition No. 11372 of 2025, S.B. Civil Writ Petition No. 11456 of 2025, S.B. Civil Writ Petition No. 14093 of 2025, S.B. Civil Writ Petition No. 11304 of 2025, S.B. Civil Writ Petition No. 11365 of 2025
Decided on : 07-10-2025

Advocates Appeared:
For the Petitioner:Mr. R.B. Mathur, Sr. Advocate assisted by Ms. Falak Mathur, Mr. Manish Bhodiwal, Mr. Utsav, Mr. Aditya Sharma, Mr. Amit Malani.
For the Respondent: Mr. Bharat Vyas, AAG with Mr. Harshvardhan Katara.

The court mandates timely adjudication of claims for refund of security deposits and critical examination of policy extensions, enforcing principles of legality and procedural fairness in administrative actions.

Headnote:(A) Rajasthan Excise Act, 1950 - Guidelines dated 28.08.2024, Notification dated 13.03.2024 - Writ petitions challenging extension of liquor license period and non-refund of security deposits - The claimants were granted licenses to operate till 31.03.2024 and extended to 30.06.2024; non-refund actions deemed arbitrary - Court mandates adjudication of claims within 30 days, with interest on delayed payments. (Paras 1, 15.1, 20-22)

(B) Jurisdiction - Courts require an actionable cause arising from demand notices or coercive orders to maintain writ petitions - Due process requires consideration of individual claims prior to judicial involvement. (Paras 9, 20)

Facts of the case:
Petitioners, having operated licenses for composite liquor shops, contested unfair policy adjustments post-election leading to non-refund of deposits. (Paras 1-4)

Findings of Court:
While no coercive action had taken place, the Court mandated explicit consideration of the petitioners' refund claims within a defined timeline. (Paras 21-22)

Issues: Whether the continuation of license beyond the stipulated period was permissible and if the retention of security deposits was legally justified. (Paras 2, 9)

Ratio Decidendi: The court ruled that actions taken without statutory authority or clear cause of action were arbitrary; thus, equitable principles require the refund of lawful claims with interest in absence of action on the part of the state authorities. (Paras 15.2, 20)

Result: Petitions disposed of with directions for timely adjudication of claims.

Table of Content
1. challenge to the license extension and refund not meeting imposed conditions. (Para 1 , 2)
2. licensees' financial distress and government directives necessitating license extension. (Para 3 , 4 , 5)
3. excise commissioner's unauthorized interpretation impacting license agreements. (Para 6 , 7 , 8)
4. respondents argue petitions are premature; clarifications are within authority. (Para 9 , 10 , 11 , 12)
5. complex factual issues not suited for writ jurisdiction. (Para 13 , 14)
6. petitioners' license status and government inaction on refunds. (Para 15)
7. confusion in policy application and lack of contemporaneous invocation. (Para 16 , 17 , 18)
8. lack of cause of action; petitions deemed premature. (Para 19 , 20)
9. court's directives for handling representations on refunds. (Para 21)
10. final disposal of petitions and pending applications. (Para 22 , 23)

JUDGMENT :

SAMEER JAIN, J.

1. In the present batch of writ petitions, the scope of the controversy involved, albeit not limited to but is broadly and predominantly defined by the threefold challenge raised regarding the extension of license period of the petitioner(s) for three months i.e. from 01.04.2024 to 30.06.2024, in pursuance of order no. 4(1)/REV/EXC/2024 dated 13.03.2024 issued by Government of Rajasthan, Finance (Excise) Department; the order/guidelines dated 28.08.2024 issued by the Excise Commissioner vide serial number F.32(B)(1) (After Policy) EX/L/2024/2024-25-03000/149 to all the District Excise Officers for calculation of shortfall for the extended period as arbitrary and beyond the enabling order no. 4 (1)/REV/EXC/2024 dated 13.03.2024; and the illegal and arbitrary actions of the respondents in not refunding the security deposit alongwith the Advanced Annual Guarantee (hereinafter referred as ‘AAG’) in light of the successful completion of the extended license period (01.04.2024 to 30.06.2024) of the petitioner in light of the order dated 13.03.2024. Consequently, considering the fact that the writ petitions warrant adjudication on common questions of law and fact; with the consent of learned counsel appearing on behalf of all the parties, S.B. Civil Writ Petition No. 11294/2025 titled as Atar Singh vs. the State of Rajasthan and ors. , is being taken up as the lead case. It is cautiously clarified that any discrepancies in the present batch of writ petitions, pertain purely to the factual narratives contained therein and not vis-à-vis the questions of law to be determined by this Court; the instant judgment shall be applicable on all the petitions connected herein/henceforth on mutatis mutandis basis.

2. The lead petition is filed with the following prayers:

"a) Quash and set aside the impugned guidelines dated 28.08.2024 issued by the Excise Commissioner;

b) Direct the respondent authorities to refund to the petitioner the security deposit and advanced annual guarantee amount along with interest @ 18% in light of the successful completion of the extended license period by the petitioner;

c) Quash and set aside any order passed by the respondent authorities against the petitioners during the pendency of this writ petitions;

d) Such further relief for which the petitioner is entitled may also be awarded including exemplary cost of the writ petition."

SUBMISSIONS BY THE LEARNED COUNSEL REPRESENTING THE PETITIONERS:

3. At the outset, learned counsel appearing for the petitioners have unanimously contended that the petitioner herein was the highest bidder (H1) for the composite liquor shop and he was issued a license by the respondent no. 4 to operate the license for the year 2023-24 and the petitioner operated for the license for the said period. The petitioner deposited all the advance payment towards the license and stared operating the shop from April 2022 and the petitioner, in accordance with the policy started lifting the liquor from RSGSM and RSBCL. It is an admitted fact that the petitioner operated the license till 31.03.2023 and did not opt for r

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