IN THE HIGH COURT OF ORISSA AT CUTTACK
B.R.SARANGI, ACJ, MURAHARI SRI RAMAN, J.
Pittu Raja Reddy – Appellant
Versus
State of Odisha and Others – Respondents
W.P. (C) No. 21250 of 2022
Decided On : 01-02-2024
| Table of Content |
|---|
| 1. factual background of license and objections. (Para 1 , 2) |
| 2. arguments regarding legality of the shifting order. (Para 3 , 4 , 5) |
| 3. court's analysis on policy relaxation and statutory adherence. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12) |
| 4. quashing of orders due to violation of policy. (Para 13) |
| 5. conclusion and final order allowing the writ petition. (Para 14 , 15) |
JUDGMENT :
B.R. SARANGI, ACJ.
1. The petitioner has filed the present writ petition seeking to quash the order dated 30.06.2022 (Annexure-2) passed by the Under Secretary to Government of Odisha in Excise Department whereby shifting of Nirakarpur Country Liquor Shop from its existing site to a new site i.e., Plot No.1205, Khata No.506/73, Mouza-Baradiha, P.S-Tangi in the District of Khordha for the remaining period of the year 2022-23 has been approved by relaxing the restrictive Clause-4.2.14 (IV) of the Odisha Excise Policy for the year 2022-23.
2. The factual matrix of the case is that the petitioner is the licensee in respect of Chhotaraypur Country Liquor Shop in the District of Khordha. The petitioner was selected in the lottery and got the license, pursuant to which he has been operating the shop by following due procedure of law and by lifting the MGQ and paying duty to the Government. Opposite party no.5 was also a lottery winner and consequently became licence holder in respect of Nirakarpur Country Liquor Shop. She got licence for the year 2021-22. After getting the licence in respect of Nirakarpur Country Liquor Shop, she opened the shop in Mouza-Nanapada, Khata No.745/1125, Plot No.1331/3409 in the District of Khordha. Her licence was also renewed for the year 2022-23. Thereafter, opposite party no.5 applied for shifting of her shop to Mouza-Taladihi, Khata No.190/252, Plot No.830 and subsequently, Form-VIII notice was issued. The petitioner being a nearby licensee, objected to the same and file objection pursuant to Form-VIII notice. The petitioner approached this Court by filing W.P.(C) No.23759 of 2021 which was disposed of vide order dated 16.08.2021 directing the Excise Commissioner to consider the petitioner’s objection and also pass a final order. The Collector, Khordha though had issued Form-VIII notice vide order dated 22.07.2021, passed an order directing the petitioner to find out another site. Opposite party no.5 consequent thereupon applied for shifting of the shop to a location outside the excise station area which is 32Kms away from her original location. Opposite party no.5 suggested shifting of the shop to Mouza-Baradihi, Khata No.506/73, Plot No.1205, PS-Tangi, District-Khordha. The Collector, Khordha vide order dated 14.04.2022 did not recommend the case to the Excise Commissioner on the ground of distance from the proposed location. Thereafter, opposite party no.5 filed an appeal i.e. Excise Appeal Case No.11 of 2022 before the Excise Commissioner, Odisha without impleading the petitioner as a party. The place to which opposite party no.5 seeks shifting is beyond the excise station area and 32KMs away from the earlier location and nearer to the petitioner’s country liquor shop than the earlier one. The Excise Commissioner, however, without giving any opportunity of hearing to the petitioner, who has been objecting the shifting of the shop, allowed the appeal and set aside the order dated 14.04.2022 passed by the Collector, Khordha and directed the Collector, Khordha to invite public objection in prescribed Form-VIII and report to the Excise Directorate after consideration of the objections received against the proposal. Pursuant to such appellate order, the formalities about Form-VIII notice were stated to be complied with. An inquiry has also been conducted and an inquiry report dated 05.01.2022 was submitted by the Inspector of Excise stating that the distance of the proposed location is 32KMs away from the existing location and secondly, it is beyond excise station area. The Collector, Khurda also reported the prohibition
The State Government cannot relax excise policy restrictions on shifting liquor shops outside designated areas, as it contravenes established law requiring public notification.
The authority cannot mandate the shifting of an operational licensee's business based on objections raised after the statutory period, as such orders lack jurisdiction and must be supported with reas....
The State Government holds the authority to regulate excise shop locations and close them without notice if due procedure was followed.
The court ruled that the rejection of a liquor license application based on arbitrary policy distinctions lacks reasonable grounding and does not adequately consider public interest.
The authority granting permission for shifting a licensed premises must provide valid reasons, and failure to do so allows for revisionary intervention by a higher authority.
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