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2019 Supreme(Jhk) 1618

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Sujit Narayan Prasad, J.
Royal Infra And Logs, Dhanbad & Ors.. - Appellant
Versus
State Of Jharkhand & Ors. - Respondent
I.A. No. 3447 of 2019 with W.P. (C) No. 1312 of 2019
Decided On : 11-04-2019

Advocates Appeared:
Mr. Sumeet Gadodia, Advocate, for the Appellant; Mr. Vikas Kumar, A.C. to A.G, for the Respondent

The specific definition of 'person' under the Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018 did not include a partnership firm, and therefore, the rejection of the petitioner's candidature was justified.

Headnote:

General Clauses Act - Excise License - Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018 - Section 2(42) of the General Clauses Act, 1897, Section 4 of the Partnership Act, 1932, Section 2(f) of the Citizenship Act, 1955 - The court discussed the definition of 'person' and 'applicant' as per the Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018, and its implications on the eligibility of a partnership firm to participate in the lottery process for settlement of Retail Excise Shops. The court also considered the applicability of the General Clauses Act, 1897 and the Partnership Act, 1932 in interpreting the definition of 'person' and 'firm'. The court emphasized that the definition of 'person' under the Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018 was specific and did not include a partnership firm, and therefore, the rejection of the petitioner's candidature was justified.

Fact of the Case:

The petitioners, an unregistered partnership firm, participated in the lottery process for settlement of Retail Excise Shops in the district of Dhanbad. After being declared as winner no. 1, their candidature was rejected on the grounds that a partnership firm was not eligible as per the specific definition of 'person' under the Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018.

Finding of the Court:

The court found that the rejection of the petitioner's candidature was justified based on the specific definition of 'person' under the Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018, which did not include a partnership firm. The court also emphasized that allowing the illegality to be perpetuated would be against the settled position of law.

Issues: The main issue was the eligibility of a partnership firm to participate in the lottery process for settlement of Retail Excise Shops as per the specific definition of 'person' under the Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018.

Ratio Decidendi: The court's decision was based on the specific definition of 'person' under the Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018, which did not include a partnership firm. The court also emphasized that allowing the illegality to be perpetuated would be against the settled position of law.

Final Decision: The writ petition was dismissed, and the court left it open to the petitioners to raise the issue of refund of the security money before the competent authority for its consideration.

JUDGMENT

1. This writ petition is under Article 226 of the Constitution of India , wherein, following reliefs have been sought for:-

(i) For a direction including Writ of Declaration declaring that the respondents-authorities cannot declare the petitioners as ineligible for participating in the process of settlement of retail Excise Shops through lottery, pursuant to advertisement dated 22.02.2019 issued by Respondent No.2, merely because the petitioners have participated in the name of their partnership firm, namely, "Royal Infra and Logs", especially because under the Indian Law a partnership firm is not recognized as an entity distinct from the members comprising it and also especially because of the fact that partners of said partnership firm are citizens of India and are aged more than 21 years of age;

(ii) For issuance of appropriate writ/order/direction including Writ of Mandamus directing the respondent- authorities to accept the security deposit of the petitioners in respect of retail Excise Shops bearing Group No. 5 and Group No. 40, notified for lottery in the district of Dhanbad, especially because the petitioners have been declared as winner no. 1 in the online lottery held for settlement of liquor shop on 05.03.2019;

(iii) For issuance of further appropriate writ/order/direction including Writ of Mandamus, directing the respondents to consequentially after acceptance of security deposit amount from the petitioners as well as other requisite amounts from the petitioners, issue necessary Excise License in respect of retail Excise Shop pertaining to Group No. 5 and Group No. 40 as notified in the district of Dhanbad.

(iv) In alternative to prayer nos. (i) to (iii), the petitioners further prays for issuance of appropriate writ/order/direction including Writ of Mandamus, directing the Respondents to refund the earnest money deposit of Rs.7,20,000/- and Rs.5,04,000/- deposited towards participation in the lottery process for allotment of Retail Excise Shops being Group No. 5 and Group No. 40 in the district of Dhanbad.

2. The brief facts of the case of the petitioners, leading to the averments made in the writ petition, are that the petitioner no. 1 is an unregistered partnership firm having two partners, namely, Himangshu Mahato and Sri Lalan Kumar Singh and both the partners of petitioner no. 1 are citizen of India and are aged more than 21 years.

The State of Jharkhand has promulgated and notified Rules for settlement and grant of license in the State of Jharkhand, known, as Jharkhand Utpad (Madira Ki Khudra Bikri Hetu Dukanon Ki Bandobasti Awam Sanchalan) Nimayawali, 2018 " (hereinafter referred to as "Rule, 2018" in short) vide Notification dated 24.12.2018, wherein, it has been primarily provided that settlement of Retail Excise Shops shall be undertaken through the process of Lottery and the shops would be notified for such lottery after determining the annual minimum revenue to be paid in respect of the said shop. As per the said Rule, it has been provided that an applicant who is a person can participate in the auction process.

Further, term person has been defined in the said Rule, 2018 which means a "person", who is citizen of India and who has attained the age of 21 years at the time of participating in the lottery process.

The competent authority has issued an advertisement on 22.02.2019 in pursuance to the provision of Rule, 2018 notifying the process for settlement of Retail Excise Shops through lottery and the date of lottery was fixed on 05.03.2019 and it was provided, inter alia, that an applicant would be entitled to participate in the lottery process conducted district wise in the entire State of Jharkhand in respect of shops and/or group of shops, as may be notified, on deposit of earnest money deposit, application fee and agency charges, including G.S.T.

For the District of Dhanbad, a detail list was published by the Respondent No.3, the Deputy Commissioner, Dhanbad, notifying the retail Excise Sh

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