By this common order we propose to dispose of LPA(OW) Nos.63/2004, 68/2004, 72/2004, 54/2004, 69/2004 and APLPA 96/2004, as common question of law and facts are involved in all the appeals.

The appellants are aggrieved of order/judgment dated 10.6.2004 passed by the learned Single Judge in OWP No. 199/2004, titled, Vikas Jandial v. State of J&K, and other connected petitions.

For the sake of convenience, reference to `appellants hereafter in the judgment, is appellants in LPA (OW) No. 63/2004.

Vide the impugned judgment, the learned Single Judge has quashed Notification No. EC/STS/108/2004-05/1944-45 dated 27.02.2004 along with all consequential actions of appellants for selection of prospective licensees by draw of lots. The appellants, however, have been left with liberty to conduct fresh exercise and consider the applications received in respect of 89 notified locations; and further invite applications in respect of 116 additional locations, for which the applications had not been invited for grant of JKEL-2 licences, after following the procedure and adopting the methodology in accordance with Excise Act and Rules framed thereunder, and in terms of the Excise Policy announced, promulgated and formulated by the State Government vide Government Order No. 99-F of 2003 dated 07.04.2003 and amended vide Government Order No. 156-F of 2003 dated 22.07.2003.

In brief, the facts are that the trade of liquor in the State of Jammu & Kashmir is regulated like other States and the State enjoys the exclusive privilege for the manufacture and sale thereof. The Jammu & Kashmir Excise Act, 1958 and the Rules, known as J&K Liquor Licence & Sales Rules, 1984, govern the trade of liquor and intoxicating drugs in the State. The State was adopting dual system to regulate the trade of liquor, viz., (i) relating to Indian Made Foreign Liquor (hereinafter referred to as IMFL) through separate retail vends on a fixed annual licence fee and, (ii) relating to Country Liquor sold exclusively through identified vends with the privilege of trading granted in open auction conducted yearly and/or through departmental operations as per the provisions of J&K Excise Act and the Rules made thereunder.

For opening of a vend for the purposes of sale of IMFL, a person desirous of trading in the commodity is required to apply to the Excise Commissioner, who has the competence/authority to grant a licence after the applicant fulfills the requisite formalities and the Excise Commissioner satisfies himself about the need for the grant of licence to the person/premises.

During the year 1996 the grant of licences to liquor shops by the State Government became the subject matter of controversy and the same was raised through the medium of various writ petitions, i.e., PIL Nos. 7/1999, 70/1999 and 136/1999. The said petitions were filed by residents of the area where the liquor vends had been opened and were likely to be opened. The challenge in the said Public Interest Litigations was common to the effect that the State was under an obligation under Article 47 of the Constitution to impose prohibition for the consumption of liquor. It was averred that the State was bound to impose the prohibition and discourage the policy of grant of licences for opening of liquor vends in the State of Jammu & Kashmir but, instead of doing so, the State was proliferating the trade of liquor by granting fresh licences to liquor vends. The said writ petitions were disposed of by a common order of the Division Bench, where directions were issued to declare the policy in regard to licensing of liquor vends. The Government took a policy decision and issued Government Order No. 112-F of 2001 dated 3.4.2001, whereby the Government laid down the following policy for the year 2001-2002:

"i. The Government does not recognize sale of liquor as a normal trade activity but one which requires to be kept under restrictions and strictly confined within the parameters of laws and rules fram