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2019 Supreme(MP) 671

IN THE HIGH COURT OF MADHYA PRADESH
G.S. Ahluwalia, J.
Gwalior Alcobrew Pvt. Ltd. v. State of M.P. and others
Writ Petition Nos. 12168 of 2019 with 23 other Writ Petitions (Gwalior); against order dated 2.1.2019 passed by Board of Revenue M.P. Gwalior in Appeal No. 6525/2018/ Gwalior / Ex. Appeal; Decided on 3.12.2019

Advocates:
Vinod Kumar Bhardwaj with Kartik Sharma and S.K. Shrivastava for petitioners; R.K. Soni Government. Advocate for State.

Headnote:

¼1½ Hkkjr dk lafoèkku && vuq- 19 ¼1½¼N½ && ewy vfèkdkj && ls vfHkzisr && 'kjkc dk O;kikj && dsoy fo'ks"kkfèkdkj gS vkSj u fd ewy vfèkdkjA ¼2004½ 11 ,l lh lh 26] ¼1990½ 1 ,l lh lh 109] rFkk ¼1995½ 1 ,l lh lh 574 vuqlfjrA ¼iSjk 17] 29 ,oa 48
¼2½ ns'kh fLifjV fu;e] 1995 ¼e-iz-½ && fu- 4 ¼4½ rFkk 11 && lh- lh- 1] Mh&&- 1] ,e-,y-&9 rFkk ,e-,y- 9&d vuqKfIr ;k èkkjd && vuqKfIr èkkj dk nkf;Ro && mlus uhyke eas Hkkx fy;k && mlus ns'kh 'kjkc dh vkiwfrZ ds fy, vuqKfIr izkIr dh && og lafonkRed nkf;R;ksa ls ckgj ugha fudy ldrk && og 'kjkc eas O;kikj dks fofu;fer djus okys micaèkksa && ;k vuqKfIr ds fucaèkuksa rFkk 'krks± ls ;k uhyke fufonk ;k vkcdkjh vk;qDr }kjk tkjh lkekU; ;k fo'ks"k vkns'k ls cp ugha ldrkA ¼2004½ 11 ,l lh lh 26 fufnZ"VA¼iSjk 18 ls 20
¼3½ ns'kh fLifjV fu;e] 1995 ¼e-iz-½ && fu- 4 ¼4½ ¼d½] 11 rFkk 12 &&fufonk lwpuk && 'krZ Ø- 6 ¼bdrhl½ && 'kkfLr dk vfèkjksi.k && vkcdkjh vk;qDr dkap dh cksryksa eas U;wure LVkWd 25 izfr'kr cuk, j[kus dk izfrcaèk yxk ldrk gS && 'kkfLr naM ds :i eas vfèkjksfir ugha && cfYd fofèk ds micaèkksa ds csgrj izorZu ds fy, && 'kkfLr lgh&gh vf/kjksfir dh xbZ && ;kfpdk [kkfjt dh xbZA fjV ;kfpdk Ø- 60@2016( fu.khZr fnukad 20-11-2018 voyafcrA , vkb vkj 1978 ,l lh 851] ¼2010½ 9 ,l lh lh 496] vkb ,y vkj 2013 ,e-ih- 837] , vkb vkj 1970 ,l lh 252] ¼2012½ 3 ,l lh lh 248] , vkb vkj 1973 ,l lh 1098] , vkb vkj 1970 lh 1955 rFkk 2010 ¼3½ ,e ih ,y ts 29 fufnZ"VA ¼iSjk 26 ls 37] 44] 45 ,oa 50
¼4½ ns'kh fLifjV fu;e] 1995 ¼e-iz-½ && fu- 11 && lkekU; ;k fo'ks"k vkns'k && ls vfHkizsr && vkcdkjh vk;qDr }kjk tkjh dh xbZ fufonk lwpuk &&fufonk lwpuk esa mfYyf[kr dksbZ Hkh 'krZ && 1995 ds fu;eksa ds vèkhu iznku fd, x, vuqca/k dk vfHkUu vax gksxh && ogh vuqKfIr/kkjh ij vkc)dj gks dh && tSls fd lkekU; ;k fo'ks"k vkns'k fu;eksa dk vfHkUu vax gS && tgk¡ dkuwu ;k fu;e ekSu gS && fu;eksa ds iwjd ds fy, dk;Zdkjh funs'k tkjh fd, tk ldrs gSaA ¼2013½ 16 ,l lh lh 147 vuqlfjrA ¼iSjk 23 ls 25
¼5½ ns'kh fLifjV fu;e] 1995 ¼e-iz-½ && fu- 4¼4½ rFkk 12 && fufonk lwpuk dh 'krZ Ø- 6 ¼ik¡p½ && ls vfHkizsr && fu;e rFkk fufonk lwpuk dh 'krZ && nksuksa fHkUu gSa && 'krZ Øekad 6 ¼ik¡p½ lkekU; vkiwfrZ ij fopkj djrh gS && tcfd fu;e 4¼4½ U;wure 25 izfr'kr dkap dh cksryksa dk LVkWd cuk, j[kus ls lacafèkr gS &&ogh ugha cuk, j[kk && 'kkfLr lgh&gh vfèkjksfir dh xbZA ¼iSjk 38 ls 41 ,oa 50

(1) Constitution of India -- Art. 19(1) (g) -- fundamental right -- means of -- trade in liquor -- is merely privilage and not fundamental right. (2004) 11 SCC 26, (1990) 1 SCC 109 and (1995) 1 SCC 574 followed. [Paras 17, 29 & 48

(2) Country Sprit Rules, 1995, (M.P.) -- Rr. 4(4) and 11 - C.S.-1, D-1, F.L.9 adn F.L.9A licenses holder -- liability of licensee -- he perticipated in auction -- he obtained license to supply countri liquor -- he can not wriggle out of contractual obligations -- he cannot avoid either the provisions regulating trade in liquor or cannot avoid terms and conditions of license or auction tender notice or general or special order issued by Excise Commissioner. (2004) 11 SCC 26 referred to. [Paras 18 to 20

(3) Country Sprit Rules, 1995, (M.P.) -- Rr. 4(4) (a), 11 and 12 -- Tender Notice -- candition No. 6 (xxxi) -- imposition of penality -- excise commissioner can impose restriction of maintaining 25% of minimum stock in glass bottles -- penality not imposed as punishment -- but for better enforcement of provisions of law -- penality rightly imposed -- petition dismissed. W.P. No. 60/2016; Decided on 30.11.2018 relied on. AIR 1978 SC 851, (2010) 9 SCC 496, ILR 2013 M.P. 837, AIR 1970 SC 253, (2012) 3 SCC 248, AIR 1973 SC 1098 AIR 1970 SC 1955 and 2010 (3) MPLJ 29 referred to.

[Paras 26 to 37, 44, 45 & 50

(4) Country Sprit Rules, 1995, (M.P.) -- R.11 -- general or special order -- means of -- Tender Notice issued by Excise Commissioner -- any condition mentioned in Tender Notice -- same shall be integral part of contract granted under Rules, 1995 -- same shall be binding on licensee -- as if said general or special order is integral part of Rules -- where statute or rules are silent -- excutive instruction can be issued to supplement the rules. (2013) 16 SCC 147 followed. [Paras 23 to 25

(5) Country Sprit Rules, 1995, (M.P.) -- Rr. 4(4) and 12 -- condition No. 6 (v) of tender notice -- means of -- rules and condition of tender notice -- both are different -- condition No. 6 (v) deals with general supply -- where as rule 4(4) deals with maintaining 25% of minimum stock in glass bottles -- same not maintained -- penalty rightly imposed. [Paras 38 to 41 & 50

ORDER

1. Heard Finally.

2. By this Common Order, W.P. Nos. 12168/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 5818/2019 (Ms. Som

Distilleries Pvt. Ltd. v. State of M.P. & Ors.), 8912/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 8610/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 8469/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 9490/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 9466/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 9417/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 9097/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 8995/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 5817/2019 (Ms. Som

Distilleries Pvt. Ltd. v. State of M.P. & Ors.), 4594/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 4095/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 3665/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 3541/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 3503/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 3382/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 3296/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 2780/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 2468/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 10068/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 9983/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 9767/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.), 9670/2019 (Gwalior

Alcobrew Pvt. Ltd. v. State of M.P. & Ors.) shall be decided.

3. For the sake of convenience, the facts of W.P. No. 12168 of 2019 shall be taken into consideration.

4. The present petition has been filed against the order dated 2.1.2019 passed by Board of Revenue in Appeal No.6525/2018/Gwalior/Ex.A, thereby affirming the order dated 12.11.2018 passed by Excise Commissioner, Gwalior in Case No. 5(1)2018- 9/7183, by which the penalty of Rs. 1,51,250/- has been imposed for not maintaining atleast 25% of minimum stock in glass bottles during the year 2017-2018.

5. According to the petitioner, it is a Private Limited Company registered under the provisions of Companies Act, 1956 and is engaged inter alia in the manufacture of rectified spirit and extra neutral alcohol. The petitioner has its distillery at Gwalior. Apart from manufacturing and bottling its own brands, the petitioner is also engaged in business of bottling brands for other alcohol manufacturers.

6. It is the case of the petitioner that it had applied for and was granted various licenses i.e., C.S.-1, D-1, F.L.9 and F.L.9A by respondent No.2 and accordingly the petitioner has been granted permission to undertake the activity of manufacturing and bottling of Indian Made Foreign Liquor (IMFL) and Country Spirit at its distillery. The petitioner has also been permitted to sell/transfer the IMFL and Country Spirit from its unit to storage warehouses and other destinations within the State of Madhya Pradesh as well as outside the State.

7. The respondent No.1 issued a Tender Notice for the supply of country spirit in sealed bottles in 51 Districts (Supply areas) of Madhya Pradesh. Sealed Tenders were invited from distillers of Madhya Pradesh for the grant of licence(s) under the provisions of the Madhya Pradesh Country Spirit Rules, 1995 (In short Rules, 1995) to supply country spirit through bonded storage warehouses to the retail sale contractors in sealed bottles for a period commencing 1st April 2017 and ending 31st March 2018.

8. The petitioner also participated and was declared successful and accordingly it was granted license and the petitioner was regularly supplying bottled country spirit. It is the claim of the petitioner, that there was no instances of non-supply of Country spirit. It is claimed that owing to the demand in the market, the supplies and consequently the stock was largely maintained in PET bottles. Since, the demand of glass bottles was nill in the

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