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1993 Supreme(Online)(Ker) 52

KERALA HIGH COURT
M. Jagannadha Rao, C. J., *K. Sreedharan, J.
Mohanan v. Jameskutty
O. P. 6430/1993



Amendments prohibiting liquor shop locations near educational/religious institutions are valid, overriding previous licenses.

Headnote:The case involved the validity of a license issued for running a Toddy Shop under the Kerala Abkari Shops (Disposal in Auction, Rules, 1974). The court upheld that amendments to the Rules prohibiting such locations near educational and religious institutions are valid and enforceable. The appellant’s license was deemed invalid due to its location violating those provisions post-amendment. The court affirmed the need for compliance with statutory prohibitions, dismissing the appellant's claims for estoppel and continuing business rights under lapsed legal frameworks.

1Fourth respondent in O. P. 6430/1993 is the appellant. That Original Petition was filed by three petitioners questioning the conduct of Toddy Shop No. 107/91-94 of Aluva Excise Range. According to the writ petitioners, fourth respondent was conducting the shop in violation of the provisions contained in the Kerala Abkari Shops (Disposal in Auction, Rules, 1974, hereinafter referred to as "the Rules", inasmuch as it is located within the prohibited distance from St. Antony's Church, Aluva, a Mosque and St. Mary's High School. Consequently writ petitioners prayed for a writ of mandamus directing respondents 1 to 3 in the Original Petition, who are the State of Kerala, Board of Revenue and Assistant Commissioner of Excise, Ernakulam respectively, to cancel the licence issued to the 4th responded to run the Toddy Shop in Survey No.261/I-A of Aluva Village. Learned Single Judge by judgment dated 2-8-1993 directed third respondent to take appropriate action as per the provisions contained in the Rules within a reasonable time. The appellant - fourth respondent questions the said decision in this appeal.

2The main arguments advanced by the learned counsel representing the appellant are as follows. The licence granted to the appellant was for three years from 1991 to 1994. At the time of the grant, it was legal and valid in terms of the Rules. The subsequent amendment of the Rules cannot adversely affect the appellant's licence. The State and its officers are estopped from interfering with his licence during its period. They are barred by the principle of promissory estoppel from interfering with the conduct of business in the licensed premises. The unexpired period of the licence is only for a few months, till the end of March, 1994. Appellants is entitled to carry on the business in the premises till the expiry of that period. We shall proceed to deal with these contentions herein below.

3Appellant got a licence to run a Toddy Shop in Survey No. 261/I-A of Aluva Village. The licence was for a period of three years, from 1-4-1991 to 31-3-3994. Toddy shop was being located in the same property during the previous abkari years. Consequently as per the provisos to R.6(2) of the Rules the Toddy Shop could be located in Survey No. 261/I-A. The said provisos were deleted with effect from 1-4-1993. The amendment so brought out to R.6(2) of the Rules was challenged before this Court in a batch of writ petitions. This Court by judgment dated 25-6-1993 upheld the amendment of the Rules. Consequently, after 1-4-1993 no one can claim protection on the basis of the provisos which have been deleted. The consequence, therefore, is that no Toddy, Arrack or Foreign Liquor Retail Shop shall be located within 400 metres from an educational institution, Temple, Church, Mosque or Burial Ground. It is the admitted case that Toddy shop No. 107/91 - 94 run by the appellant, is situated within the prohibited distance from a Church, a Mosque and an educational institution.

4The licence granted to the appellant specifically provided that it is subject to the further amendments brought out to the Abkari Act, Rules and Circulars to be issued by the Commissioner of Excise. Clause - 39 of the licence is categoric and specific in this regard, that the licensee will be bound by the subsequent changes in the Act, Rules and Circulars. By virtue of this specific provision contained in the licence, according to us, appellant cannot be allowed to contend that the amendment brought out to R.6(2) cannot affect his licence. As per the amended provision, as staged earlier, no toddy shop can be located within 400 metres from an educational institution, Church or Mosque. Therefore, after 1-4-1993 the location of the shop belonging to the appellant in the present premises is against R.6(2) of the Rules.

5Learned counsel representing the appellant advanced an argument that his client obtained the licence in 1991 for running the toddy shop upto 31-3-1994. At the time of the grant, i






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