IN THE HIGH COURT OF ALLAHABAD
Mehrotra, J.
SHYAM KISHORE KAPUR - Appellant
Versus
LICENSING BOARD (EXCISE) - Respondents
Civil Misc. Writ 1130 Of 1957
Decided On : 05/09/1957
EXCISE - Licensing Board - Constitution - Representatives of Municipal Board - Nomination by Collector - Validity - U. P. Excise Act (II of 1910), Ss. 10, 21 - U. P. Excise Manual, Paras. 366, 368, 370.
Fact of the Case:
Petitioners, former licensees of opium shops, challenged the constitution of the Licensing Board that granted licenses for the sale of opium in Allahabad for the year 1957-58. They contended that the Board was improperly constituted as it lacked proper representatives from the Municipal Board and that the Collector's nomination of five persons as Board members was invalid.
Finding of the Court:
The court held that the Collector lacked the authority to nominate five persons as representatives of the Municipal Board on the Licensing Board. The court interpreted the relevant provisions of the U. P. Excise Act and the U. P. Excise Manual and concluded that the Collector's power to nominate members only arose if the Municipal Board failed to send its own representatives. Since the Administrator, who had taken over the functions of the Municipal Board, had not failed to send representatives, the Collector's nomination was invalid.
Issues: 1. Whether the Collector had the authority to nominate five persons as representatives of the Municipal Board on the Licensing Board. 2. Whether the Administrator, who had taken over the functions of the Municipal Board, had failed to send representatives to the Board.
Ratio Decidendi: The court interpreted the relevant provisions of the U. P. Excise Act and the U. P. Excise Manual and concluded that the Collector's power to nominate members only arose if the Municipal Board failed to send its own representatives. Since the Administrator, who had taken over the functions of the Municipal Board, had not failed to send representatives, the Collector's nomination was invalid.
Final Decision: The court allowed the petition and quashed the proceedings of the Licensing Board dated March 21, 1957, and March 29, 1957. However, the parties were directed to bear their own costs.
( 1 ) THE petitioners obtained, a licence under an auction held in the year 1956 for the year 1956-57, the period beginning from the 1-4-1956 to the 31-3-1957. The highest bid of the petitioners was for Rs. 72,0007- for the four shops to be run within the municipal limits of allahabad. The rival bidder was one L. Shiv Dayal Jaiswal. The right for selling opium in retail within the municipal limits of Allahabad used to be given away by public auction to the highest bidder by the District Magistrate under the provisions of the Excise Act, in February 1957 it was given out by the Excise authorises that in future there will be no auction for giving licence for selling the opium in retail. A new system was to be introduced which was known! as Surcharge system and the applications for purpose of obtaining licence were to be made to the Excise Licensing Board for Allahabad City. The petitioners thereafter applied to the licensing Board and L. Shiv Dayal Jaiswal also made a similar application. The Licensing board considered the various applications on the 21-3-1957 and it was given out to the petitioners that, the names of L. Shiv Dayal Jaiswal for Rani Mandi shop and one Sri Sita Bam of Katra for Katra shop had been approved for the grant of opium licence: On the 23-3-1057 the petitioners then made an application to the District Magistrate praying that the petitioners be allowed an opportunity to represent their case before, him through their counsel. On the 26-3-1957 another detailed application was made to the District Magistrate on behalf of the petitioners for an opportunity to be given to represent the correct facts. On the 28-3-1957 another application addressed to the Chairman, Licensing Board, was made by the petitioners and the matter, to the knowledge of the petitioners was again considered by the Licensing Board on the 29-3-1957. On these facts the present petition has been filed under Article 226 of the constitution for the following reliefs:--
(a) A writ of certiorari quashing the decision of the Licensing Board dated the 21-3-1957 giving the licence to Sri Shiv Dayal Jaiswal for the opium shops within the Allahabad Municipal limits for the year 1957-58, and also (b) a writ of certiorari quashing the proceedings of the Licensing Board dated the 21st of March and 29th of March 1957.
( 2 ) THIS petition was filed on the 1-4-1957. Notice was issued and an order was made that a date for hearing be fixed within three weeks. Originally the Licensing Board through its Chairman and the Collector were impleaded as opposite parties but thereafter an application was, made on behalf of Shiv Dayal Jaiswal for being impleaded as an opposite party. His application was allowed and it was directed that he be impleaded as an opposite party. Another application was filed on behalf of Sita Ram through Sri Gajadhar Prasad Bhargava for being impleaded as a party. He was. however, permitted to oppose the petition.
( 3 ) THE main contention raised by the petitioners in the present patition is that the constitution of the Licensing Board was not proper and consequently the entire proceedings held on. the 21-3-1957 and the 29-3-1957 were illigal and must be quashed. It is conceded that in these proceedings the petitioners are not entitled to any grant of licence to them. The only relief which the petitioners are entitled to claim is the quashing of the proceedings of the 21-3-1957 and the 28-3-1957.
( 4 ) IT is not disputed that prior to the year commencing from the 1-4-1957 to the 31-3-1958 the system adopted for the administration of the excise shops in the district was that the shops in the city were auctioned to the highest bidder the person who offered the highest licence fee was then granted licence and under the licence he was to sell opium in retail in those shops. The State government, however, in pursuance of the policy to restrict the consumption of opium by individuals directed that the retail opium was limited to card-
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