High Court of Madhya Pradesh
Vishal Mishra, J.
AKARSH s/o RAJENDRA JAISWAL – APPELLANT
Versus
STATE OF MADHYA PRADESH & ORS. – RESPONDENTS
W. P. No. 8791 of 2022
Decided On : 19-04-2022
Liquor Shop - Madhya Pradesh Excise Act - 24 - The court rejected the intervention application by local residents to shift a liquor shop, citing the Madhya Pradesh Karmachari Congress vs. State of Madhya Pradesh and others, W. A. No. 64/2021. The petitioner, a license holder, challenged the order to shift the shop, arguing that no show cause notice or opportunity of hearing was granted. The court analyzed the provisions of the Madhya Pradesh Excise Act, 1915, and the new Excise Policy of 2022-23, and considered the objections raised by the public. The court found that the District Magistrate had the power to direct closure or relocation of the shop for the preservation of public peace, and that the petitioner had no fundamental right to run the liquor shop. The court dismissed the petition, upholding the order to shift the shop.
Fact of the Case:
The petitioner, a license holder under the Madhya Pradesh Excise Act, challenged an order to shift a liquor shop to a non-objectionable place. The petitioner argued that no show cause notice or opportunity of hearing was granted, and that the order would adversely affect the business.
Finding of the Court:
The court found that the District Magistrate had the power to direct closure or relocation of the shop for the preservation of public peace. The court also held that the petitioner had no fundamental right to run the liquor shop, as per the Madhya Pradesh Excise Act and the new Excise Policy of 2022-23. The court dismissed the petition, upholding the order to shift the shop.
Issues: The main issues were whether the petitioner had the right to run the liquor shop at the premises, and whether the District Magistrate had the authority to pass the order without providing an opportunity of hearing to the petitioner.
Ratio Decidendi: The court held that the District Magistrate had the power to direct closure or relocation of the shop for the preservation of public peace, as per Section 24 of the Madhya Pradesh Excise Act, 1915. The court also found that the petitioner had no fundamental right to run the liquor shop, as per the new Excise Policy of 2022-23.
Final Decision: The court dismissed the petition, upholding the order to shift the liquor shop to a non-objectionable place.
ORDER : – The complainants have filed an application for intervening into the matter pointing out several facts and circumstances before this Court but the fact remains that on an application being filed the intervenors, the cognizance has been taken by the Authorities i.e. the Collector and the impugned order has been passed. Thus, virtually the complaint made by them is acted upon. Therefore, the intervenors who are the local residents of the area wherein the liquor shop is being opened has no locus to intervene into the writ petition, placing reliance upon the judgment passed by the Division Bench of this Court in the case of Madhya Pradesh Karmachari Congress vs. State of Madhya Pradesh and others, W. A. No. 64/2021 decided on 10-2-2021.
In such circumstances, once the complaint filed by the intervenor is already acted upon they don’t have any locus to intervene into the writ petition.
Accordingly, the intervention application is rejected.
With the consent of the parties, the matter is heard.
Challenge is being made to the order dated 11-4-2022 sent on behalf of the respondent No. 2, whereby the petitioner has been directed to shift the Composite Liquor Shop Gorakhpur - I to a place which is having no objection.
2. It is argued that only four days time have been granted to the petitioner for doing the needful which is affecting the business of the petitioner to a large extent, without there being any show cause notice or opportunity of hearing granted to the petitioner. The order has been served upon the petitioner on 12-4-2022 at 7 P.M. It is argued that the petitioner is a rightful owner of the license under the Madhya Pradesh Excise Act for undertaking the liquor business and after participating in the tender process, he was declared successful bidder for running a Composite Liquor Shop in area Gorakhpur vide order dated 31-3-2022. He entered into a rent agreement with one Rahul Khatri and others and has taken three floor building situated at Gorakhpur for a total amount of consideration of Rs. 5,00,000/-. The agreement is valid upto 31-3-2022. It is submitted that in pursuance to the provisions of Madhya Pradesh Excise Act, 1915, the Rules regarding location of any liquor shop is that ‘no liquor shop shall be deemed to exist within 50 meter radius of any religious institution, academic institution, hospital or a bus stand etc,’ therefore, prior to finalisation of the shop, verification was got done by the Authorities in the presence of the Assistant Excise Commissioner, Jabalpur whereby it was observed that the distance between the liquor shop and one Wisdom Valley School is 75 meters. It is argued that impugned order does not reflect any reason for issuing a direction to the petitioner to shift the shop in question, coupled with the fact that he was never served with the so called objections which have been raised by the public at large. It is settled legal proposition that in case any order is passed having civil consequences then the opportunity of hearing should have been granted prior to passing such orders. Direction for shifting of shop will be adversely effecting the business of the petitioner and will be causing huge loss to him. Thus, the order is per se illegal. He has drawn attention of this Court to the Gazette notification dated 31-3-2018 wherein Rule 2 of Rules as under : –
“Any shop for the sale of liquor shall not be situated upto a distance of 50 meters from lawful religious institution, girls school, girls college and lawful girls hostel.”
3. It is argued that after due verification of the location of the shop, the same has been permitted to be run by the petitioner. The petitioner has already invested huge amount and has also entered into a rent agreement. Once the Authorities have visited the site and has verified that the aforesaid shop is not violating any of the Rules and Regulations of the
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The District Magistrate has the power to direct closure or relocation of a liquor shop for the preservation of public peace, and a liquor shop licensee has no fundamental right to run the shop as per....
There is no fundamental right to trade in liquor; state policies can modify licensing rights as long as they comply with statutory provisions.
The consent of the owner of the premises is necessary for carrying on liquor business, and in the absence of such consent, the authority is not entitled to grant a license to the tenant.
The State Government holds the authority to regulate excise shop locations and close them without notice if due procedure was followed.
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