SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2002 Supreme(Mad) 614

High Court of Judicature at Madras
MR. R. SUBHASHAN REDDY & D. MURUGESAN
State of Tamil Nadu and another
Versus
K. Vinayagamurthy
W.A.No.2209 of 2002 and WPs No.25181 to 25185 of 2002
Decided On: 24-07-2002

Advocates Appeared
Mr. N.R. Chandran, Advocate General assisted by Mr. R. Muthukumaraswamy, Additional Advocate General assisted by Mr. K. Mahendran,Special Government Pleader for Appellant. Mr. K.M. Vijayan, Senior Counsel, for M/s. J. Pothiraj, Advocate for Respondent.

Headnote:

Constitutionality - Governmental Orders - Tamil Nadu Prohibition Act, 1937 - G.O. Ms. Nos.128, 129 and 130 - Summary of Acts and Sections

Fact of the Case:

The constitutionality of Governmental Orders contained in G.O. Ms. Nos.128, 129 and 130 Prohibition and Excise (VI) Department, dated 8.7.2002 has been assailed in this batch of writ petitions. The petitioners are the licensees of retail outlets set up pursuant to the licences issued during the last excise year 2001 - 2002. The excise year commenced on 1.8.2001 and expired on 31.7.2002.

Finding of the Court:

The Government is at liberty to go ahead with the grant of privilege of retail vending of Indian Made Foreign Liquor to the extent of 7,000 shops as decided. The Government shall adhere to the places of retail vending which have been licenced for the excise year 2001 - 2002 and held by the petitioners and renew the licence of the petitioners for the excise year 2002 - 2003 on the petitioners' remittance of the privilege amount on the basis of the amount fixed in G.O. Ms.No.129, dated 8.7.2002 and also taking into account the re-categorisation of the shops for the purpose of levy of the privilege amount.

Issues: Constitutionality of Governmental Orders, Right to renewal of licence, Fiscal policy of the Government

Ratio Decidendi: The Government is entitled to grant privilege of retail vending of Indian Made Foreign Liquor to the extent of 7,000 shops. The Government shall renew the licence of the petitioners for the excise year 2002 - 2003 on the petitioners' remittance of the privilege amount.

Final Decision: The Government is at liberty to go ahead with the grant of privilege of retail vending of Indian Made Foreign Liquor to the extent of 7,000 shops. The Government shall renew the licence of the petitioners for the excise year 2002 - 2003 on the petitioners' remittance of the privilege amount.

Judgment :

B. Subhashan Reddy, CJ.

1. The constitutionality of Governmental Orders contained in G.O. Ms. Nos.128, 129 and 130 Prohibition and Excise (VI) Department, dated 8.7.2002 has been assailed in this batch of writ petitions. Of course, there is a Writ Appeal filed against the interim order passed in W.P.M.P. No.34563 of 2002 in W.P. No.25181 of 2002. But the said Writ Appeal gets disposed of in view of the disposal of these writ petitions themselves.

2. We refer all the writ petitioners as the petitioners; the State Government as the Government; the Commissioner of Excise as the Commissioner and the District Collector as the Collector.

3. The petitioners are the licensees of retail outlets set up pursuant to the licences issued during the last excise year 2001 - 2002. The excise year commenced on 1.8.2001 and expires on 31.7.2002. While the wholesale distribution is controlled by the State through the Tamil Nadu State Marketing Corporation, which supplies the Indian Made Foreign Liquor to the retailers like the petitioners, the retailers, including the petitioners, sell the same at the licensed premises. Privilege to vend the liquor in retail was being granted pursuant to Rules framed by virtue of rule-making power conferred by Sections 17-C, 17-D, 17-E, 18-B, 18-C, 20, 21 and 54 of Tamil Nadu Prohibition Act, 1937, hereinafter referred to as the Prohibition Act.

4. Tamil Nadu Liquor (License and Permit) Rules, 1981, were framed in exercise of the above statutory provisions. The said Rules contemplate issuance of various kinds of licences apart from retail, with which we are not concerned. F.L.1 related to licence for the grant of privilege of retail sale of bottled Indian-made foreign spirits or sale of foreign liquor. Persons making application for grant of retail licence had to remit the application fee of Rs.100, privilege fee of Rs.20,000 and a licence fee of Rs.5,000 and had to comply with some other conditions. The duration of the licence is one year under Rule 18. The conditions to be specified before such a privilege is granted and licence issued are enumerated in Rule 19 thereof. If the licence was granted, then the licensee was entitled to apply for renewal under Rule 21 and the Authority thereunder was empowered to consider the same. In addition to the fees stated above, a security deposit of Rs.5,000 was to be made for Form F.L.1 licence.

5. The Tamil Nadu Liquor (Retail Vending) Rules, 1989, were framed repealing the above Rules of 1981 in so far as they relate to the retail vending of the Indian Made Foreign Spirits and Beer and in fact, it is explicit from the very title of the Rules of 1989. It became effective from 1st of June 1989. Rule 3 provides for the grant of privilege by mode of auction. Rule 4 empowers the Government to fix the maximum number of shops to be established in the State, the Commissioner to allocate the shops to respective districts according to the needs and the Collector to identify the areas in which shops are to be opened in the district. Rule 5 deals with auction; Rule 6 with Earnest Money Deposit; Rule 7 with conduct of auction; Rule 8 with receipt of tender; Rule 9 with bidding; Rule 10 with remittance of privilege amount by auction purchaser; Rule 11 with confirmation of sale privilege; Rule 12 with mode of dealing with Earnest Money; Rule 13 with grant of licence and the deposit of the amount of Rs.100 towards the application, Rs.2,500/-towards the licence fee for one year and Rs.25,000 towards security deposit. Rule 13-A enables grant of licence to nominees of public bodies to the extent provided in Rule 3 and with the same conditions as are applicable to new licensees. Rule 14 deals with renewal of licence. Other Rules need no mention. Under sub-Rule 2-A of Rule 13, the period of licence shall be for the period ending 31st May of the succeeding year unless otherwise specified in the licence issued in a particular case provided that the said period shall not apply to the


















































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top