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2022 Supreme(J&K) 723

IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT JAMMU
TASHI RABSTAN, C.J., RAJESH SEKHRI, J.
UT of J&K & Ors. – Appellants
Versus
Iqbal Kalra – Respondent
LPA No. 146 of 2022
Decided on : 31-12-2022

Advocates:
Advocate Appeared:
For The Appellant : D.C. Raina; K.D.S. Kotwal
For the Respondent: Y.E. Tak

IMPORTANT POINT
The court established that the J&K Excise Act and the Liquor License and Sales Rules do not prohibit an individual from holding multiple types of liquor licenses simultaneously.

Headnote:

DISQUALIFICATION - LIQUOR LICENSE - The court upheld the Single Judge's decision that the Excise Commissioner's disqualification of the petitioner from holding a retail vend license due to already holding a bottling license was unfounded, as the J&K Excise Act and relevant rules do not prohibit holding both licenses simultaneously. The court emphasized the interpretation of the rules, confirming the legality of the petitioner's license and ordering a refund of the bid amount with interest.

Fact of the Case:

The petitioner, the highest bidder for a liquor vend license, was disqualified by the Excise Commissioner on the grounds of already holding a bottling license. The petitioner contested this disqualification, arguing that the law did not prohibit holding both licenses.

Finding of the Court:

The court found that the J&K Excise Act and the Liquor License and Sales Rules did not contain any provisions preventing an individual from holding both types of licenses. The court agreed with the Single Judge's interpretation of the rules.

Issues: Whether the Excise Commissioner had the authority to disqualify the petitioner from holding a retail vend license based on the possession of a bottling license, and whether such disqualification was supported by the relevant laws and rules.

Ratio Decidendi: The court determined that the interpretation of the J&K Excise Act and the Liquor License and Sales Rules did not support the Excise Commissioner's disqualification of the petitioner, as there was no explicit prohibition against holding both licenses.

Final Decision: The appeal was dismissed, upholding the Single Judge's decision to allow the petitioner to operate the vend and ordering a refund of 50% of the bid amount with interest.

JUDGMENT :

Tashi Rabstan, C.J.

1. This Letters Patent Appeal is directed against the judgment dated 17.11.2022 delivered by the learned Single Judge in WP(C) No. 1813/2022, whereby the learned Single Judge, while allowing the petition, set aside the order dated 23.08.2022 disqualifying the writ petitioner to hold the license of retail vend (JKEL-2) for being holder of license for bottling (JKEL-6), with a direction to Excise Commissioner to immediately and forthwith allow the petitioner to operate his vend by issuing the requisite license in his favour. It was further directed that since by the act of Excise Commissioner issuing the order dated 23.08.2022, the writ petitioner has lost half of the period of license, as such he would be entitled to refund of 50% of the bid amount, which was to be released within a period of four weeks.

2. Heard learned counsel appearing for the parties, considered their rival contentions and perused the appeal file.

3. Admittedly, the writ petitioner was the highest bidder in the re-auction of liquor vend-in-question and he deposited the bid amount too to the tune of Rs. 25,00,000/-. Even after completion of the requisite formalities and obtaining of No Objection Certificate required under the J&K Liquor License and Sales Rules, 1984, the license in favour of the writ petitioner was not issued, rather he was disqualified by the Excise Commissioner vide order dated 23.08.2022 on the ground of being already holder of license for bottling (JKEL-6).

4. Admittedly, the J&K Excise Act Svt., 1958 nowhere provides that a person cannot hold two licences of different types together and simultaneously. Even, there is no prohibition in Rules 18 and 19 of J&K Liquor License and Sales Rules, 1984 with regard to holding of JKEL-2 license in conjunction with JKEL-6 license. Further, we are in complete agreement with the learned Single Judge that from a plain reading and understanding of the Rules as they stand, there is hardly any scope for placing the interpretation as is sought to be placed by the writ respondents on Rule 19(1) read with Rule 39(6) and what is prohibited is clearly contained in Rule 18.

5. Viewed thus, we do not find any ground to interfere with the judgment of learned Single Judge, except that the refund of 50% of the bid amount shall carry 6% interest from the date of depositing the same till its final realization.

6. The appeal is, accordingly, dismissed thereby upholding the judgment of learned Single Judge with the aforementioned modification. Connected CM, if any, accordingly, stands disposed of. Caveat No.1540/2022 is discharged.

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