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1971 Supreme(Online)(All) 15

ALLAHABAD HIGH COURT
D. S. Mathur, J
Sushil Chandra v. State
Civil Misc. Writ No. 1370 of 1970 | Civil Misc. Writ No. 1600 of 1970



Advocates:
For the Appellants/Petitioners: [Unknown]
For the Respondents: [Unknown]

The State Government holds the authority to regulate excise shop locations and close them without notice if due procedure was followed.

Headnote:(A) U.P. Excise Act, 1910 - Section 35 - Jurisdiction of the State Government to cancel licenses - The State Government is empowered to regulate the number and location of excise shops, and can close shops without notice when a bid has not been finalized - Procedural requirements of natural justice do not apply where statutory provisions exclude notice requirements. (Paras 6-14)

(B) Administrative Discretion - The exercise of power by the State under Excise Act does not infringe principles of natural justice if carried out within statutory and administrative frameworks. (Paras 13-20)

Facts of the case:
The appellants, who were the highest bidders for a liquor shop, contended they were improperly denied their license on grounds that the shop must be closed at the Government's discretion.

Findings of Court:
The court found no merit in appellants' claims, supporting the State’s decision based on community complaints and the administrative framework under the Excise Act.

Issues: The key issues were whether the State exceeded its jurisdiction and the application of natural justice prior to license cancellation.

Ratio Decidendi: The court determined the State had the authority to cancel operations of the shop in question prior to the issuance of a license without providing notice.

Result: Appeal dismissed.

Table of Content
1. background of writ petitions and initial proceedings (Para 1 , 2 , 4)
2. interim court orders (Para 3)
3. main legal arguments (Para 5)
4. regulatory framework for excise licenses (Para 6 , 7 , 10 , 19)
5. reaffirmation of administrative authority (Para 13 , 20)
6. final decision and rationale (Para 14 , 22)

1. This and the connected Special Appeal arise out of Civil Misc. Writ Nos. 1370 and 1600 of 1970 decided by a learned Single Judge of this Court by a common judgment dated September 30, 1970, both filed by the appellants in these appeals.

2. Briefly stated the facts are these. Sometime in the month of February, 1970, the District Excise Officer, Lucknow, took a decision that the excise shop situated in Ganneywali Gali in the city of Lucknow shall continue to be at its old place and that shop along with others was auctioned on February 26, 1970. The appellants were the highest bidders, their bid being for a sum of Rs. 4,28,000/-. The bid was accepted by the District Excise Officer, Lucknow. The appellants complied with the conditions of the auction and on 31st March, 1970 purchased from the previous licensee all the furnitures and fittings of the shop and also the balance of the country liquor which remained unsold in the shop. Their licence was to start from April 1, 1970 and was to continue in force upto March 31, 1971. According to the appellants, Sushil Chander, appellant No. 1, went to the office of the District Excise Officer on April 1, 1970, to collect a provisional licence which is issued in accordance with the normal practice pending the final sanction of the bid by the Excise Commissioner. The provisional licence, however, was not granted to him because of certain instructions received from the Government. An order dated 31st March, 1970 was served upon the appellants to shift the shop by May 1, 1970, and in case that was not done, the shop was to be closed. Later on the same day another order was served upon the appellants requiring them to close the shop forth with. Thus the appellants' shop was not allowed to function.

3. Thereupon on April 7, 1970, the appellants filed Civil Misc. Writ No. 1370 or 1970, against the order of the District Excise Officer requiring the appellants to shift their shop to some other place. On April 13, 1970, a learned Single Judge of this Court passed the following ex parte interim stay order :
"Till further orders of this Court, the respondents are restrained from interfering with the petitioners selling country liquor in the existing shop, provided the petitioners are otherwise entitled to sell country liquor but without taking into account the order directing to shift their shop. The respondents will be at liberty to move this Court at any time for vacating this order, if necessary."
According to the petitioners' allegation when they received on April 21, 1970 a copy of the counter - affidavit filed on behalf of the Excise Department, they found a mention therein of an order of the State Government dated April 1, 1970, a copy whereof was annexed to the counter - affidavit as Annexure 'C - A.1', directing the District Magistrate, Lucknow, to close the appellants' shop forthwith. The appellants have alleged that this order of the State Government was not served upon them and they came to know of it for the first time on April 21, 1970, when a copy of the counter - affidavit was served upon them. This led to the filing of the second Writ Petition No. 1600 of 1970 which was filed on April 23, 1970 and was directed against the order of the State Government dated April 1, 1970 requiring the appellants to close their shop forthwith.


4. In the meantime the Excise Commissioner passed an order dated April 29, 1970, refusing to accept the appellants' bid on the ground that the Government having already closed the shop with effect from April 1, 1970, the question of the approval of the bid did not arise. Thereupon the appellants moved an application for amendment of the Writ Petitio





























































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