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2006 Supreme(Mad) 3164
High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. A.P. SHAH & THE HONOURABLE MR. JUSTICE K. CHANDRU
M/s. Shanmuga Wines, rep. by its Partner & Others - Appellant
Versus
V. Gandhimathi & Others - Respondents
W.A. Nos.1280 of 2006, 1400 of 2006, 1401 of 2006, 1423 of 2006 and 1424 of 2006 & M.P. No.5 of 2006, M.P. Nos.1 & 2 of 2006, M.P.No.4 of 2006
Decided On : 22 November 2006
The central legal point established in the judgment is the authority of the Licensing Commissioner to determine the exclusive licensee and decide on the permission to shift the business premises in the context of a partnership deed.
Headnote:
Liquor Business - Dispute over License Ownership - [Partnership Deed, Licensing Authority] - The court addressed the issue of license ownership and the right to carry on the liquor business in the context of a partnership deed. The court directed the Licensing Authority to determine the exclusive licensee and decide on the permission to shift the business premises.
Fact of the Case:
Dispute arose over the ownership of a liquor license and the right to carry on the liquor business in the context of a partnership deed. The first respondent claimed exclusive right to the license, while the appellant argued that the license belonged to the partnership firm.
Finding of the Court:
The court directed the Licensing Authority to determine the exclusive licensee and decide on the permission to shift the business premises. The court emphasized that all questions on merits are left open to the parties.
Issues: Dispute over license ownership and the right to carry on the liquor business, interpretation of partnership deed, and the authority of the Licensing Commissioner.
Ratio Decidendi: The court held that the Licensing Authority should determine the exclusive licensee and decide on the permission to shift the business premises, leaving all questions on merits open to the parties.
Final Decision: The court disposed of all writ appeals and directed the parties to appear before the Commissioner for a decision on license ownership and permission to shift the business premises.
(Prayer in W.A.No.1280 of 2006: Writ Appeal filed against the order dated 06.09.2006 passed by this Court in W.P.No.30979 of 2006.
Prayer in W.A.No.1400 of 2006: Writ Appeal filed against the order dated 19.08.2006 passed by this Court in W.P.No.22114 of 2006.
Prayer in W.A.No.1401of 2006: Writ Appeal filed against the order dated 19.08.2006 passed by this Court in W.P.No.14883 of 2006.
Prayer in W.A.No.1423 of 2006: Writ Appeal filed against the order dated 19.08.2006 passed by this Court in W.P.No.22114 of 2006.
Prayer in W.A.No.1424 of 2006: Writ Appeal filed against the order dated 19.08.2006 passed by this Court in W.P.No.14883 of 2006. )
Common Judgment:
A.P. Shah, C.J.
Writ Appeal No.1280 of 2006 is directed against the order dated 06.09.2006 passed by the learned single Judge in Writ Petition No.30979 of 2006, whereas Writ Appeal Nos.1400, 1401, 1423 & 1424 of 2006 are directed against the order dated 19.08.2006 passed by the learned single Judge in Writ Petition Nos.14883 and 22114 of 2006.
2. Since common questions of law and fact are involved in these writ appeals, they are being disposed of by this common order.
3. The dispute between the parties relates to the liquor business carried on in the name of M/s.Shamuga Wines at Karaikal, Pondicherry. The case of the appellant, in brief, is that the first respondent/V.G.Gandhimathi had a licence in her name. She along with five other constituted a partnership firm in the name of M/s.Shanmuga Wines. A deed of partnership was executed on 01.04.1984. Clause 18 of the partnership deed expressly states that the licence will be the property of the firm. M/s.Shanmuga wines was registered on 04.12.1985. The firm was reconstituted on 07.01.1989 with admission/retirement of certain partners. Clause – 20 of the reconstituted partnership deed reads that the licence standing in the name of V.G.Gandhimathi will be the property of the firm. Thus, when the licence is shown to be the property of the firm, the first respondent cannot claim exclusive right to the licence. On the other hand, the case of the first respondent is that the licence stood in her name, and hence irrespective of the claim based on the partnership, for the purpose of Licensing Authority, she alone is the licence holder and entitled to run the business to the exclusion of other partners, who are claiming rights on the basis of the alleged partnership deed.
4. The dispute between the parties started when the 2nd respondent permitted the shifting of the shop from the existing licensed premises to a different place. The first respondent filed Writ Petition No.14883 of 2006 seeking to restrain the Licensing Authority from in any manner permitting the shifting of the existing liquor shop standing in her name to any other place without her consent and permission. It appears that pending W.P.No.14883 of 2006, shifting of the liquor shop was permitted. Therefore, the 1st respondent filed W.P.No.22114 of 2006 restraining the Licensing Authority from in any manner permitting respondents 3 and 4 therein to run the liquor shop without the consent of the 1st respondent. A learned single Judge of this Court by order dated 19.08.2006 disposed of W.P.Nos.14883 of 2006 and 22114 of 2006 by quashing the order passed for shifting the liquor shop. The learned single Judge directed that the business of M/s.Shanmuga Wines will be conducted in the new premises only after the petitioner therein (1st respondent herein) is heard and thereafter, the Licensing Authority is satisfied that there has been proper application as per the Rules and Regulations. The learned single Judge further observed in paragraph – 26 of the order that the dispute regarding partnership firm and the rights and liabilities of the partners in the said partnership firm shall be resolved in an appropriate forum.
5. While the application for transfer of the licensed premises is still pending before the second respondent the Licensing Authority granted permission to
