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2026 Supreme(UK) 137

IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Manoj Kumar Gupta, C.J., Subhash Upadhyay, J.
Anheuser Busch InBev India Limited - Appellant
Versus
Maa Sheetla Distributors Private Limited and others - Respondents
Special Appeal No. 33 of 2026
Decided On : 17-02-2026

Advocates Appeared:
For the Appellant : Mr. Kavin Gulati, learned Senior Counsel assisted by Mr. Abhay Chattopadhya and Mr. Rohit Arora, learned counsel.
For the Respondent: Mr. Shobhit Saharia, learned counsel, Mr. C.S. Rawat, learned Chief Standing Counsel

Writ courts cannot grant interim relief beyond prayers by restraining un-challenged actions on third-party applications; incompetent subordinate notice quashed without affecting competent authority's proceedings on license matters.

Headnote:(A) Constitution of India - Article 226 - Writ jurisdiction - Interim relief - Relief granted must be confined to prayers in writ petition - Restraining authorities from acting on third party's application for license cancellation and fresh grant, when writ targeted only impugned notice, amounts to granting unprayed relief and amounts to final relief despite terminated agreement and expiring license validity - Such order ex facie illegal in discretionary writ jurisdiction. (Paras 14, 18-22)

(B) Excise Policy Rules, 2025 - Rule 21.4 - Competence of subordinate officer - Notice issued by In-charge Excise Officer without authority or direction from competent authority quashed solely on ground of lack of competence - Does not affect maintainability of application before competent authority or any inquiry/action thereon - Competent authority free to seek information and proceed. (Paras 24-28)

Facts of the case:
Intra-court appeal against Single Judge's interim order in writ petition challenging notice issued by In-charge Excise Officer pursuant to manufacturer's application seeking cancellation of existing BWFL-2B license (valid till 31.03.2026) held by distributor and grant of fresh license exclusively to manufacturer after termination of distributorship agreement amid disputes over defaults, financial obligations and supplies affecting state revenue. Single Judge restrained action on notice and application, directed decision on prior notice. Supreme Court declined interference directing appeal on merits.

Findings of Court:
Impugned notice quashed solely for being beyond competence of In-charge Excise Officer; no opinion on application or proceedings before competent authority who remains free to act.

Issues: Whether Single Judge exceeded writ prayers by restraining action on un-challenged application; competence of In-charge Excise Officer to issue notice; effect of quashing notice on underlying application.

Ratio Decidendi: Writ relief confined to cause of action (here, incompetent notice); quashing notice does not impact competent proceedings on application especially where parallel arbitration courts denied similar injunctions to distributor; non-disclosure of such material facts vitiates interim order.

Result: Intra-court appeal and writ petition disposed of; notice quashed with clarifications.

Table of Content
1. intra-court appeal heard on merits post supreme court order. (Para 1 , 2 , 3 , 4)
2. distributor dispute leads to license cancellation application. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
3. single judge granted unprayed restraint on license proceedings. (Para 13 , 14 , 15 , 16)
4. writ relief confined to notice; no effect on license application. (Para 17 , 18 , 19 , 20 , 21 , 22)
5. notice quashed lacking officer competence; proceedings at liberty. (Para 23 , 24 , 25 , 26 , 27)
6. appeal and writ disposed with clarification on proceedings. (Para 28 , 29 , 30 , 31)

JUDGMENT :

Manoj Kumar Gupta, C.J.

1. Heard Shri Kavin Gulati, learned Senior Counsel assisted by Shri Abhay Chattopadhya, learned counsel for the appellant, Shri Shobhit Saharia, learned counsel for respondent no. 1 & Shri C.S. Rawat, learned Chief Standing Counsel for the State of Uttarakhand/ respondent nos. 2 & 3.

2. The present intra-court appeal is directed against the order of learned Single Judge dated 08.01.2026 passed in Writ Petition (M/S) No. 51/2026, whereby the learned Single Judge, while entertaining the aforesaid Writ Petition filed by respondent no. 1 (hereinafter referred to as the ‘petitioner’), challenging a notice dated 10.12.2025 issued by the In-charge Excise Officer, has restrained the respondents from taking any further action on basis thereof, and has issued various other directions also. The operative part of the order of the learned Single Judge dated 08.01.2026 is as under :-

“11. Until further orders, the Official-respondents are restrained from taking any further action on the impugned notice dated 10.12.2025, annexure no. 1 as well as on the application of respondent no. 3 dated 10.11.2025. Simultaneously, during this period Official-respondents are directed to take decision on earlier notice dated 27.10.2025, issued by the Excise Commissioner, which is annexed as Annexure 19, and place before this Court the decision as such on the next date.”

3. The order of the learned Single Judge aforesaid dated 08.01.2026 was challenged by the appellant (respondent no. 3 to the Writ Petition) before the Supreme Court by filing Special Leave to Appeal (C) No(s). 3077/2026. The Supreme Court, by order dated 23.01.2026, declined to interfere with the impugned order, in view of availability of the remedy of intra-court appeal to the appellant herein. The Supreme Court, however, observed that, since the order of this Court, impugned before the Supreme Court, prima facie, affects valuable rights of the appellant, therefore, in case any appeal is preferred by the appellant, the same shall be considered on merits. The order of the Supreme Court dated 23.01.2026 is as follows :-

“1. In view of availability of an intra-court appeal before the High Court of Uttarakhand, we are not inclined to interfere with the impugned interim order of the High Court; hence, the special leave petition is dismissed.

2. If an appeal is preferred, the same shall be considered on merits. We make this observation because the impugned interim order does, prima facie, seem to affect a valuable right of the petitioner.

3. Pending application(s), if any, shall stand disposed of.”

4. The appellant, thereafter, filed the instant intra- court appeal, and, in view of the directions issued by the Supreme Court, it has to be decided on merits.

5. The appellant-company is engaged in the business of brewing, packaging, distributing, marketing and selling of alcoholic and non-alcoholic beverages in India. By an agreement dated 20.03.2021, between the appellant and the petitioner, the petitioner was appointed as distributor for four brands of beer manufactured by it for the State of Uttarakhand. The said agreement was for a period of 12 months. According to the appellant, the Distributor Agreement was extended from time to time, on basis of addenda(s) executed between the parties. There exists a BWFL-2B license in the name of the petitioner, and which is valid up to 31st March, 2026. Ther

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