High Court Of Madhya Pradesh
U. L. BHAT, P. P. NAOLEKAR
ASHOK KUMAR SAHU - Appellant
Versus
STATE OF MAHDYA PRADESH - Respondents
MISC. PETN. 4530 Of 1993
Decided On : 02/16/1994
EXCISE - M. P. Excise Act, 1960 (sic) - Rule C, Sub-rule (viii) - Closure of liquor shops - Collector's power to order closure - Scope and extent - Remission of licence fees and reduction of minimum guarantee quota - Not permissible.
Fact of the Case:
Petitioners, liquor contractors, challenged the closure of their shops for more than three days during the general election, seeking remission of license fees and reduction of minimum guarantee quota. The closure was ordered by the Collectors under Rule C, Sub-rule (viii) of the M. P. Excise Act, 1960 (sic).
Finding of the Court:
The court held that the Collector's power to order closure of shops is not exhausted with the announcement made at the time of elections, as contemplated in clause (2) of Sub-rule (viii). The power conferred under clause (1) is general or plenary, and clause (2) takes only an aspect of such power. The order of the Collector directing closure of the shops for more than three days announced at the time of elections is sanctioned by clause (1) of Sub-rule (viii).
Issues: 1. Whether the Collector's power to order closure of liquor shops is limited to the announcement made at the time of elections? 2. Whether the petitioners are entitled to remission of license fees and reduction of minimum guarantee quota due to the closure of shops?
Ratio Decidendi: 1. The court interpreted Rule C, Sub-rule (viii) of the M. P. Excise Act, 1960 (sic), and held that the Collector's power to order closure of shops is general or plenary and is not exhausted by the announcement made at the time of elections. Clause (2) of Sub-rule (viii) only takes an aspect of such power. 2. The court held that the petitioners are not entitled to remission of license fees and reduction of minimum guarantee quota as they were aware of the possibility of closure of shops for certain days, including national holidays, elections, and administrative exigencies, as per the conditions of the license.
Final Decision: The writ petitions were dismissed, and the petitioners were directed to pay Rs. 500/- as costs to the respondents.
( 1 ) THE petitioners in these writ petitions are contractors of different kinds of liquor. They have purchased the privilege of vending liquor in specified shops by offering the highest bid at the auctions conducted for the year 1993-94. On account of the recent general election for the Madhya Pradesh Legislative Assembly, they were required by the Collectors of the respective districts to close the shops and refrain from vending liquor for several days in excess of three days. The petitioners have no grievance about closure of shops for three days. The main relief asked namely to quash the orders has become infructuous. The petitioners have sought two alternative reliefs, namely - remission of the proportionate licence fees as also proportionate reduction of the minimum guarantee quota of liquor which they are expected to lift from the Government warehouses. On behalf of the respondents, returns have been filed in few of the cases and they are treated as returns in order cases also.
( 2 ) THE closure is of 11 days in M. P. No. 61 of 1994, 9 days in M. P. No 4676 of 1993, 7 days in M. P. No. 4677 of 1993 and M. P. No. 4530 of 1993 and 4 days in M. P. No. 4678 of 1993. Reference can be made to Annexures P4, P7 and P8 in M. P. No. 4530 of 1993. Annexure-P7 is the order passed by the Collector. It states that as per the wishes of the Election Commission to maintain law and order in the district, liquor shops should be closed on the date of polling, two days prior to polling, one day after the polling, date of counting, one day prior to counting and one day after the counting. Annexure-P4 is a copy of conditions of licence which form part of the auction sale notice which is accepted by all the persons who offered bids at auctions. It indicates that liquor shops will be closed on six national holidays, namely - 26th January, 30th January, 15th August, 2nd October, Holiday and Moharram day. It also states that in addition, the Collector has power to close shops for a maximum of 6 days in administrative exigencies and in public interest. It further states that all shops will be closed in connection with elections to Parliament, Assemblies and local bodies on the date of polling and two days immediately prior to polling. Annexure P8 is another extract of the sale notice relating to the remission of licence fees and the like. The terms of Annexure P4 referred to above are taken from the Government order.
( 3 ) THE relevant Act is M. P. Excise Act, 1960 (sic ). It contains provisions regarding the requirement of licence, payment of licence fees and lease of privilege of vending liquor. Section 62 confers on the State Government powers to make rules for purposes of carrying out the provisions of the Act. Rules framed under the Central Provinces Excise Act have been adopted in the State. Rule C enumerates general licence conditions. Sub-rule (viii) of Rule C reads as follows:"viii. Shops to be kept open and adequately stocked: (1) Shops shall be kept open every day throughout the year unless their temporary or permanent closure has been authorised by the Collector. Such supply of liquor or intoxicating drugs as the Collector may consider sufficient to meet the local requirement shall be maintained. Subject to the provisions of Section 38 of the Act, and to the exceptions specified in Rule XIV, sales be made to all comers on payment at the current rate of sale. Shops for the sale of tari may be closed during the rains, i. e. from the 1st June to the 14th October. (2) Shops shall remain closed for the whole day on such days as the Collector may announce at the time of auctions. Provided that the Collector, or District Excise Officer, or in their absence a Deputy Collector, duly authorised by the Collector, may require foreign liquor licences holding licenses in Forms F. L. 1 and F. L. 2 to open the shops on such days for sale of foreign liquor to bona fide foreign visitors. (3) Shops shall he closed, if the Collector orders,
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.