IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Ali Mohammad Magrey, J.
(Through Virtual Mode)
Sandeep Chattoo – Appellant
Versus
Union Territory of J&K and Ors. – Respondent
CM No.2174/2021 in WP(C) No.739/2021, CM No.2175/2021 and Caveat No.511/2021
Decided on 16-04-2021
J. and K. Excise Act 1958-Section 62-J &K Liquor, License and Sale Rules 1984-Rules 14 and 16-Constitution of India-Article 47-Grant of license to run Retail Sale of Foreign Liquor and Indian Made Foreign Liquor- Every license issued under provisions of Jammu and Kashmir Excise Act and rules framed thereunder shall be renewed before expiry of its period of validity if Licensing Authority approved continuation of license through same licensee and in respect of same premises-Fact that licenses already granted were being renewed as a matter of course, contrary to provisions of law, formed the basis for respondents to take corrective steps and act in accordance with law and not follow practice which is contrary to law-Trade in liquor cannot be claimed as a matter of right-There is no fundamental right to trade in liquor-It is a right conferred by State and consequently there is no scope for claiming renewal of license which in past was followed as a matter of course and such practice being contrary to law, cannot be sought to be enforced in Court. (Paras 16, 18 and 19)
Result-Writ Petition dismissed.
Judgment (Oral)
Ali Mohammad Magrey, J.-
CM No.2174/2021:
1. This application, for the reasons stated and grounds urged therein, is allowed. Since Court proposed to decide the writ petition at motion hearing, therefore, no requirement of making good the deficiency of annexing the requisite Court fee, stamp papers, notarization, etc.
2. CM disposed of as above.
Caveat No.511/2021:
3. With the appearance of Mr. D. C. Raina, learned Advocate General with Mr Sajad Ashraf, learned GA, appearing counsel for caveators/respondents, Caveat No.511/2021, as lodged, shall stand discharged, accordingly.
WP(C) No.739/2021; CM No. 2175/2021
4. In the instant petition, challenge has been made to the Excise Policy issued by respondent No. 1 vide S.O. 114 dated 31st March, 2021 for the year 2021-22, for e-Auction of Retail Liquor Vends to the extent of his rights qua JKEL-2 at Batwara Srinagar, within the Badami Bagh, Cantonment area, as per the Clauses prescribed in the Excise Policy 2021-22 and the Provisions of J&K Excise Act, 1958, rules framed thereunder, being arbitrary, irrational and contrary to the Act and the Liquor Rules on the grounds detailed out in the writ petition.
5. The material facts leading to filing of the instant writ petition, available from the perusal of the pleadings on record are that the petitioner on fulfilment of the requirements under the provisions of Excise Act, Rules and the policy, was granted license for auction of Retail Sale of Foreign Liquor and Indian Made Foreign, Liquor, including (Beer) for consumption in the premises and off the premises situated Near Broadway Cinema at Batawara, Srinagar, from 31.01.2001 for the year 2000-2001 and thereafter renewed from time to time and valid for the year 2022-2023.
6. Petitioner while holding the license for running the Retail Sale of Foreign Liquor and Indian Made Foreign, Liquor, including (Beer), came to know about the Excise Policy for the year 2021-22, issued in terms of S.O.114 dated 31st March, 2021, having its validity with effect from 1st April, 2021 till 31st March, 2022 with its objective as enshrined under Clause 1 of the policy and believes it to be ultra virus to the parent Act, irrational, volatile to the rights of the petitioner who claims to be facing extreme difficulties due to insignificant, irrational and total ambiguity in the Excise Policy, challenges the same on the following grounds:-
i. That the impugned policy is not in consonance with the direction/s passed by the Division Bench of this Court in case titled Balbir Singh and Ors. Vs. State of JK and Ors., the lead case being OWP No. 486/2017 and LPAOW Nos. 11/2017, 20/2017, 21/2017, 22,2017, 23/2017, 44/2017, decided on 28.12.2020, the judgment so far it relates to the petitioner as an existing licensee, leaves no scope for renewal but puts an end / unlawful determination to the already accrued rights of the petitioner qua issuance of the liquor license issued & renewed by the competent authority under the Excise Act, the provisions of the Act & the notification issued under the Act leaves no scope for respondents to come up with the impugn policy, taking away the rights of petitioner when the same was not even the purport of the judgment rendered by the Division Bench of this court, subsequently clarified in the decision rendered in bunch of Review petitions on 06.04.2021.
ii. That from the bare perusal of Clause 2.1 of the Excise Policy 2021-22, it transpires that the License for Type-C i.e. JKEL-2 shall be issued by as per the provisions of J&K Excise Act, 1958 and the Rules framed thereunder i.e. SRO 679 J&K Liquor, License and Sale Rules 1984. The very Notification dated 31st March, 2021 on the basis of which Excise Policy has been issued, it has been categorically stated that it will come into force from 1st April, 2021 and will continue to remain in force till 31st March, 2022 and as per Bid document, Clause 1.8, it has further been stated that all licenses granted under the provisi
There is no fundamental right to trade in liquor; state policies can modify licensing rights as long as they comply with statutory provisions.
Unilateral extension of a liquor license after its expiry is unlawful and violates statutory provisions and contractual obligations.
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