2011 (2) CWC 97
High Court of Judicature at Madras
M.Y. EQBAL & T.S. SIVAGNANAM
V. Pethaperumal
Versus
State of Pondicherry, Rep. by its Chief Secretary, Puducherry & Others
Writ Petition Nos. 5556 & 5720 of 2010 & Connected Miscellaneous Petitions
Decided on : 29-03-2011
Excise - Policy Decision - G.O.Ms.No.1/ Excise - Pondicherry Excise Act, 1970 - Rules 113 to 123 - The court upheld the policy decision of the Government to grant IFML licenses to private persons in Puducherry and Karaikal regions, lifting the ban imposed in 1989. The court emphasized that the Government has the exclusive privilege to regulate the excise business and can change policy decisions as per the requirement, considering factors like population growth, economy, and commerce. The judgment cited precedents to support the limited scope of interference in matters of policy decisions by the Government.
Fact of the Case:
The petitioners sought to quash a policy decision (G.O.Ms.No.1/ Excise) to grant IFML licenses to private persons in Puducherry and Karaikal regions, lifting the ban imposed in 1989. The petitioners challenged the policy decision, citing concerns about the impact on public welfare, law and order, and illegal activities.
Finding of the Court:
The court found that the policy decision of the Government to grant IFML licenses cannot be called into question, as the Government has the exclusive privilege to regulate the excise business and can change policy decisions as per the requirement. The court dismissed the petitions, upholding the policy decision of the Government.
Issues: The main issue was whether the petitioners, having vested interest, were entitled to challenge the policy decision of the Government in the matter of excise business.
Ratio Decidendi: The court emphasized that no citizen has a fundamental right to carry on excise business, and the Government has the exclusive privilege to regulate the excise business by issuing policy decisions from time to time as per the requirement. The judgment cited precedents to support the limited scope of interference in matters of policy decisions by the Government.
Final Decision: The court dismissed the petitions, upholding the policy decision of the Government to grant IFML licenses to private persons in Puducherry and Karaikal regions, lifting the ban imposed in 1989.
1. Since in both the writ petitions, the petitioners have sought for one and the same relief namely, for quashing G.O.Ms.No.1/ Excise dated 22.02.2010 published in the Extraordinary Gazette No.8, dated 22.02.2010 they are being heard and disposed of by this common order.
2. W.P.No. 5556 of 2010 is filed under the garb of public interest litigation seeking for the issue of a Writ of Certiorarified Mandamus calling for the entire records in respect of G.O.Ms.No.1/ Excise Dated 22.02.2010 on the file of the third respondent, which was published in the Puducherry Gazette and quash the same and consequently direct the respondent not to issue fresh licenses to IFML in future.
3. W.P.No. 5720 of 2010 has been filed by the petitioner-association called ‘The Pondicherry F.L.II Wine Merchants Association’ seeking for the issue of a Writ of Certiorari calling for the entire records pertaining to the order passed in G.O.Ms.No.1/ Excise dated 22.02.2010 published in the Extraordinary Gazette No.8, dated 22.02.2010 on the file of the second respondent and quash the same.
4. The case of the petitioner in W.P.No. 5556 of 2010 is that the petitioner is the founder of Perunthalaivar Kamarajar Samooga Neethi Urimai Padhukapu Sangam, which is a registered one, and is functioning from the year 2007 mainly for the welfare of public and downtrodden people at Puducherry.
5. It is the case of the petitioner that there are already surplus toddy shops, arrack shops, bars and wine shops in almost all the villages and town. License has been granted to conduct bars in the five star and three star hotels. Apart from that the Government has also opened number of restaurants wherein Government has permitted running of bars. The Government through co-operative societies like PASIC, PAPSCO and AMUDHA SURABI has permitted to run the bar. During the year 1989, many Social Welfare Organizations, NGOs and Social Workers brought to the notice of the Government the need to restrict the number of IMFL Shops in the interest of public and particularly younger generation, whose population itself is around 3 lakhs. Accordingly, the Government took a policy decision not to grant new licenses. However, the said ban was relaxed in respect of hotels/restaurants under Tourism category, and also to the Government run co-operative societies like PASIC, PAPSCO and AMUDHA SURABHI. According to the petitioner, in spite of ban in force, more than 100 licenses have been issued to the co-operative/public sector category and tourism hotels.
6. The petitioner had also given statistical details of the number of shops and also the consumption, thereby highlighting the fact consumption of liquor has increased over the period and has affected the younger generation and college going students.
7. It is submitted by the petitioner that now the Government is taking steps to issue licence to around 90 shops by relaxing the ban. The grievance of the petitioner is that if licence is granted to open more shops, it will lead to increase in floating population from adjacent states and it may create law and order problem. The petitioner has also emphasized that illegal activities have become order of the day and also dacoity, robbery and murders are increasing.
8. The petitioner’s case is that apart from the petitioner-organisation, number of NGOs, social welfare organizers and social workers have given representation to the Government to defer the issuance of license to new IFML shops to private persons. According to the petitioner, the Government unmindful of the representation is taking steps to implement the notification for issuing licence. Hence, the petitioner, taking the interest of public, younger generation, women, students, is forced to file this public interest litigation to quash the notification issued by the Government of Puducherry.
9. The case of the petitioner-association in W.P.No.5720 of 2010 is that the petitioner-association is a registered association formed for the p
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