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2026 Supreme(Mad) 1314

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
D. Bharatha Chakravarthy, J.
K.S.Ravichandran - Petitioner
Versus
The Managing Director, Tamil Nadu State Marketing Corporation – Respondent
W.P.(MD)No.8990 of 2026 and W.M.P.(MD)Nos.7214 and 7216 of 2026 and CONT. P.(MD)No.872 of 2026
Decided On : 27-04-2026

Advocates Appeared:
For the Petitioner: Mr. H. Mohammed Imran for M/s. Ajmal Associates
For the Respondent: Mr. H. Arumugam Standing Counsel, Mr. M. Lingadurai Special Government Pleader

An administrative order granting approval for a retail liquor shop is void if passed without considering public objections or if it is enforced prior to its formal communication to the objectors, as mandated by the statutory Rules of 2003.

Headnote:The proceedings concern the challenge to the opening of a retail liquor outlet by the State Marketing Corporation. The petitioner asserted that the statutory requirement under Rule 8(3) of the Tamil Nadu Liquor Retail Vending (In Shops and Bars) Rules, 2003, which mandates the consideration of public objections prior to granting approval, was bypassed. The court found that the administrative order was passed and the shop inaugurated in a hurried manner, effectively silencing the public's right to representation. The primary issue was whether the statutory procedure for public enquiry was complied with and whether the order authorizing the shop was legally valid prior to communication to the parties. The court reasoned that an order is only effectuated upon communication to the affected parties, and the delegation of the hearing to an unauthorized official without furnishing a report to the objectors violated the principles of natural justice. The evidence cited by the respondent regarding public safety risks was found to be factually baseless and defamatory. The writ petition is allowed, the impugned administrative order is quashed, the shop is ordered to close, and a fresh inquiry is directed to be held by the District Collector personally, including the cross-examination of those who provided false information to the administration.

Table of Content
1. procedural history and arguments regarding shop location and statutory objections. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. examination of rule 8(3) and mandatory requirements for proper communication and inquiry. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
3. final directions quashing the illegal order and mandating a de novo inquiry. (Para 21)

ORDER :

D. Bharatha Chakravarthy, J.

1.The Contempt Petition is filed, alleging willful disobedience of the order dated 04.03.2026, passed in W.P.(MD) No. 26028 of 2025.

2. During the hearing of the contempt petition, it was represented on behalf of the respondents/contemnors’ authorities that an order had already been passed on 11.03.2026, considering the petitioner's objections, completing the enquiry, and permitting the shop. Therefore, W.P.(MD)No.8990 of 2026 is filed challenging the same. Since both are interconnected, they are disposed of by this common order.

3. The brief factual background in which these proceedings arise is that the petitioner claims to be a resident of Netaji Nagar, Perumangalur Post, Peravurani Taluk, Thanjavur District. TASMAC earlier proposed to open a shop at Door Nos. 114, 115 and 116, Lenin Nagar, Main Road, Netaji Nagar, Perumangalur Post, Peravurani Taluk, Thanjavur District. When the shop was proposed to be located, there was public agitation, and a peace committee meeting was held on 30.06.2014. Pursuant thereto, the proposal was dropped. However, on 11.09.2025, the District Collector, Thanjavur, passed an order granting permission to open the retail outlet in S.No. 162/22A, which is also on the same street. The said order was challenged before this Court for a flagrant violation of the Tamil Nadu Liquor Retail Vending (In Shops and Bars) Rules, 2003, more specifically, Rule 8(3).

4. It is the contention of the petitioner that the petitioner, as well as the others, had made objections by way of representation to the District Collector, and as per the proviso to Rule 8(3) of the said Rules, 2003, the Collector has to consider the representation and pass orders thereon before granting permission. When the matter came up for hearing, it was reported before this Court that in view of the Rule position, a fresh notice is thereafter published and pursuant thereto, the objections of everyone will be considered and it was submitted that the enquiry was proposed to be conducted on 06.03.2026. Accordingly, the following order was passed in the said writ petition in W.P(MD)No.26028 of 2025, dated 04.03.2026 and paragraphs 4 and 5 are extracted hereunder for ready reference:

“...4. It is submitted that the notice dated 28.02.2026 was also received by the Petitioner. Therefore, it will be open for the petitioner and also any other person who is interested to submit their objections to the second Respondent/District Collector. The second Respondent/District Collector has to first consider the objections and dispose of the same as per the Rules and depending on his decision only, the further decision to locate the shop or not, can be taken.

5. Therefore, in view of the same, the petitioner or any person interested can appear before the District Collector on 06.03.2026, the date fixed for enquiry and it will be open for the petitioner or anybody else to submit their objections and the same shall be considered as per the Rules. It is needless to mention that unless a decision is taken, the TASMAC shop cannot be located in the said place.”

5. Under the said circumstances, it is the contention of the petitioner that the shop was opened on 11.03.2026. An urgent motion CONT. P. (MD) No. 872 of 2026 was moved, complaining of willful disobedience of the order. When the matter came up for hearing thereafter, an order dated 11.03.2026 was produced before this Court, showing that the District Collector had passed the order on the objections as required under the proviso to Rule 9, and thereafter, only the shop was located.

6. It is the contention of

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