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2023 Supreme(P&H) 2232

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
RITU BAHRI, KULDEEP TIWARI, JJ.
M/s. Jagdish Kumar – Petitioner
Versus
Union Territory of Chandigarh & Ors. – Respondents
CIVIL WRIT PETITION NO. 26590 of 2022
Decided On : 18-07-2023

Advocates Appeared:
Mr. Sanjay Kaushal, Senior Advocate assisted by Mr. Yagyadeep, Advocate; For the Petitioner
Mr. Sumeet Jain, Addl. Standing Counsel for UT, Chandigarh.

Headnote:(A) Constitution of India - Article 226 - Excise Policy 2022-23 - Quashing of liquor license cancellation and appeal dismissal - The petitioner, unable to open liquor vend due to local resistance, challenges forfeiture of 15% bid money as per Clauses 22 and 23 of the policy - Court determined liability limited to forfeiture following non-compliance of operational conditions.(Paras 5, 10, 15)

(B) Writ Jurisdiction - Scope - A petitioner must adhere to terms accepted in an auction process and cannot contest conditions post-bid acceptance - Grounds for judicial intervention not met when due diligence was not exercised before bidding. (Paras 13, 15)

Facts of the case:
The petitioner, a successful bidder for a liquor vend, could not operate due to local resistance, leading to non-payment of license fees and resultant cancellation of the license, which prompted the petition for reimbursement of bid money.

Findings of Court:
The court upheld the department's order to forfeit 15% of the bid money, finding that the petitioner failed to operate the vend as per Excise Policy requirements.

Issues: The key issue was whether the forfeiture of 15% bid money was justified when the petitioner faced operational difficulties beyond their control.

Ratio Decidendi: The court concluded that forfeiture was appropriate as the petitioner had not complied with the licensing conditions. The absence of a suitable premises for operation and local resistance did not absolve them of responsibility.

Result: Writ petition dismissed.

Table of Content
1. petition for quashing liquor license cancellation and bid money forfeiture. (Para 1 , 2 , 3)
2. details on bid, cancellation, and statutory appeal outcomes. (Para 4 , 5)
3. arguments by the petitioner regarding local resistance and bid money. (Para 6 , 7)
4. state's stance on bidding terms and responsibilities. (Para 8)
5. analysis and application of excise policy clauses regarding licensing. (Para 9 , 10 , 11 , 12)
6. court's dismissal of petition based on established legal principles. (Para 13 , 14 , 15)

JUDGMENT

Mr. Kuldeep Tiwari, J.

Petitioner-firm knocked the doors of this Court by invoking the inherent writ jurisdiction under Article 226 of the Constitution of India, seeking quashing of the order dated 26.8.2022 (Annexure P- 18), passed by respondent no. 3, vide which the allotment of retail sale foreign liquor (L-2/L-14A) license to the petitioner for Vend Code 85 at Raipur Kalan (within Lal Dora), U.T. Chandigarh, was cancelled and also the order dated 14.11.2022, (Annexure P-24) vide which its statutory appeal was dismissed by respondent No. 2. The petitioner further sought a mandamus for issuance of directions to respondent no. 2 to allow the petitioner to shift the allotted liquor Vend from area falling under Lal Dora to a place outside Lal Dora of village Raipur Kalan, UT. Chandigarh and also sought directions that 15% bid money paid at the time of allotment may not be forfeited by the Respondent-State.

2. At the time of issuance of notice of motion, learned counsel for the petitioner, at the very outset, on instructions imparted to him by the petitioner, made a statement that he does not want to press the issue of cancellation of allotment of the retail sale and liquor license pertaining to Vend Code 85. However, he confined the scope of instant petition with regard to forfeiture of 15% of the bid money as directed by the Appellate Authority i.e. the Excise and Taxation Commissioner, U.T., Chandigarh.

3. Before we embark upon the process of answering the disputed issue, as raised in the present petition, it would be apposite to first succinctly enumerate the brief facts of the matter.

4. The petitioner-firm was a successful bidder for Vend Code 85 situated at Village Raipur Kalan (within Lal Dora) for an amount of Rs. 2,53,16,013/- under the Excise Policy for the year 2022-23. However, the petitioner-firm was unable to open the Vend within the Lal Dora of village Raipur Kalan, because of two reasons. Firstly, it could not get any shop in that area and thereafter, when it got the shop, there was local resistance, which did not allow the petitioner-firm to open its liquor vend within the Lal Dora of the village. Since, the petitioner-firm could not open the shop, the total sale proceeds was nil and consequently, it did not deposit instalment of license fee for the month of April, 2022, which was required to be deposited upto 30.4.2022 and upto 15.5.2022 along with the interest. Upon non-compliance of the condition of the Excise Policy for the year 2022-23, the respondent-Excise and Taxation Department, U.T., Chandigarh suspended the license of the petitioner-firm vide order dated 2.6.2022, with immediate effect. Thereafter, vide impugned order dated 26.8.2022, it also cancelled the Vend license of the petitioner and ordered the re-allotment of the said Vend by auction, at the risk and cost of the petitioner, in view of Clause 34 of the Excise Policy for the year 2022-23.

5. The above cancellation order constrained the petitioner-firm to prefer a statutory appeal, before the statutory appellate authority concerned. However, it remained unsuccessful and the same was dismissed vide order dated 14.11.2022. However, the learned statutory Appellate Authority concerned modified the order of the learned Collector concerned to the extent that the petitioner is not required to pay the license fee for the entire excise policy year, when it did not operate the Vend even for a single day and only ordered to forfeit 1

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