Rule 13 of Rules, 1989 is not violative of the provisions of constitution.

1. In this batch of writ petitions, the main question to be considered is the scope of Rule 13 of the Tamil Nadu Liquor (Retail Vending) Rules, 1989.

2. Under Sec.17-C of the Tamil Nadu Prohibition Act, 1937, it shall be lawful for the State Government to grant to any person or persons on such conditions and for such period as they may deem fit the exclusive of other privilege, (a) of manufacturing Indian Made foreign spirits, or (b) of selling by retail Indian made foreign spirits, within any local area.

3. Sec.20 of that Act provides for Permits and Licences, sec.20(d) reads thus: “The State Government or any Officer empowered by them in this behalf may issue

(a) to (c) xxxxxxxx

(d) licences to any person to possess liquor and to issue it to persons or insititutions who hold permits or licences under this Act or who have been exempted under this Act from so much of the provisions of Sec.4, sub-Sec.(1), Cls.(a) or (j), as relates to the possession, consumption or buying of liquors.

Sec.20-A provides for matters to be taken into consideration by the licensing authority. It says:

“Subject to the provisions of Sec.20-B in considering any application for grant for a licence or permit under this Act, the authority competent to grant such licence or permit, as the case may be, shall have regard to the following matters, namely:

(a) the suitability of the applicant for the grant of licence or permit, as the case may be:

(b) Omitted.

(c) such other matters as may be prescribed.”

There is an Explanation added to that section which reads thus:

“ Explanation: It is hereby declared that, in judging the suitability of the applicant for the grant of licence or permit, as the case may be. the authority competent to grant such licence or permit shall have regard to the following factors namely:

(a) solvency of the applicant;

(b) whether the applicant has contravened any of the provisions of this Act or of any rule, notification or order made there under or has committed the breach of any of the terms and conditions of any licence or permit granted under the provisions of this Act or of any rule made there under;

(c) whether the applicant has been convicted of any offence punishable under this Act or of any cognizable and non-bailable offence or of any offence under the Dangerous Drugs Act, 1930 (Central Act 11 of 1930) or under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958) or under Sec.482 to 489 of the Indian Penal Code (Central Act XLV of 1860).

(d) whether the applicant carries on any other business which is likely to prevent him from giving his due attention to the purpose for which the licence or permit under this Act is sought for:

(e) whether the applicant was a defaulter in payment of any amount due to the State Government under this Act or the rules made thereunder or any taxes or other amounts due to the State Government;

(f) any other matter relevant to the purpose of which the licence or permit under this Act is sought for.”

Chapter VI deals with Rules and Notifications. Sub.sec.(2) of Sec.54 Act says thus:

“In particular and without prejudice to the generality of the foregoing provisions, the State Government may make rules:

(a) for the issueof licences and permits and the enforcement of the conditions thereof;

…..

Sub-Sec.(3) reads thus:

“All rules made under this Act shall, as soon as possible after they are made, be placed on the table of both the Houses of the Legislature and shall be subject to such modifications by way of amendments or repeal as the Legislative Assembly may make within fourteen days on which the House actually sits either in the same session or in more than one session.”

Sec.55 of the Act is also of some importance. It reads thus:

“All rules made and notification issued under this Act shall be published in the Official Gazette and upon such publication shall have effect as if enacted in this Act..” (Italics supplied)

4. Tamil Nadu Liquor (Retail Vending) Rules,