IN THE HIGH COURT OF MADHYA PRADESH
Ravi Malimath, CJ, and Vishal Mishra, J.
Vandana Dwivedi v. State of M. P.
Writ Petition No. 15497 of 2023 (J); Decided on 8.1.2024*
Contract Act, 1872 -- S. 73 -- M. P. Excise Act, 1915 -- Ss. 62 and 63 -- compensation -- petitioner licence-holder of liquor for certain period -- deposited licence fee/annual auction amount with delay -- not entitled for supply of liquor on delayed payment -- compensation not payable -- writ petition dismissed. (2008) 10 SCC 607 followed. [Para 8
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ORDER
Mishra, J:- 1. The present petition has been filed challenging the order dated 27.6.2023 whereby the claim of the petitioner for supply of liquor has been rejected.
2. It is his case that the petitioner is a licensee of a group liquor shop at C.S. Waterhouse, New Bus Stand Kudri Road, District Shahdol for a duration from 1st June 2021 to 31st March, 2022. Licenses were provided to him for a consideration of Rs.8 Crores 50 Lacs approximately. The petitioner entered into the contract on 1st June 2021 and operated the liquor shop till 31st May 2022, as two months extension was granted to the petitioner due to Covid pandemic lockdown across the country.
3. The petitioner has paid and fulfilled all obligations mentioned in the contract entered between the Government and petitioner and in case some duties are paid with some delay that was in pursuance to the time period which has been extended by the Authority themselves but the fact that the petitioner has paid all the duties in accordance with law could not be disputed. It is his case that despite all the payments being made to the authorities, the respondents/department had not supplied liquor to the petitioner which entitles the petitioner to receive a compensation from the department as per section 73 of the Contract Act, 1872 to tune of Rs.2,56,91,193/-. The District Excise Officer has recommended the case of the petitioner but the aforesaid was not taken note of by the Excise Commissioner, in turn, causing huge financial loss to the petitioner, therefore, this petition is filed seeking the following reliefs :-
"The Hon'ble High Court to pass writ of certiorari or any other writ and directions set aside the Order Annexure P/1 of respondent No.2 dated 27.6.2023.
The Hon'ble Court provide compensation to the petitioner of Rs.2,56,91,193/- along with interest of 12% from the date 31 May, 2022.
Any other directions and orders as the Hon'ble Court deemt fit as per the fact of the case."
4. On notice being issued, a detailed reply has been filed by the respondents in the matter. It is contended that Condition No.4 in Annexure P/3 clarifies that the payment of license fee shall be in accordance with rule 2 of the General License Condition. Further Clauses 15 and 17 clarify that the M.P. Excise Act, 1915 as well as rules and notifications issued thereunder shall be equally applicable to him. These General License Conditions as well as excise policy are being framed by the State Government in exercise of powers under section 62 and 63 of the Act of 2015. It is contended that the petitioner has made the payments but with delay and is claiming supply of liquor on the delayed payment of license fee or refund of the said fee, even compensation. The default committed by the petitioner in depositing the fortnightly license fee before 15th or 30th/31st of each month has been brought on record as Annexure R-2. Clause 31.4 of the Excise Liquor Policy notified by the State Government in terms of Section 63 of the Act of 2015 clarifies that in case the licensee fails to deposit the fortnightly installment of annual auction amount/license fee before the end of each fortnight and fails to deposit the same within first three days of successive fortnight then he shall not be entitled to supply of liquor for the fortnight in default at all. It is not the case of the petitioner that falls under the category of deposition of annual auction or license fee before the end of each fortnight, rather it is a case where there is a delay in depositing of the installment of the annual license fee. The same could not be disputed by the petitioner.
5. Rejoinder has been filed and an attempt has been made to satisfy the Court that the letter of District Excise Officer, Shahdol mentions that the petitioner has deposited Rs.2,56,91,193/- for supply of liquor and that is accepted by the authorities. The aforesaid was also communicated to the Excise Commissioner but the fact remains that the Excise Policy provides
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