The Abkari Policy 2014-15, limiting bar licenses to five-star hotels, was deemed arbitrary and unconstitutional for failing to establish a rational basis for classification and ignoring expert recommendations.

1. On 22/08/2014, as per GO MS No. 139/2014 / TD dated 22/08/2014, the Government of Kerala notified its Abkari Policy for the year 2014-15. As per the new Abkari Policy, only hotels having Five Star classification and above granted by the Ministry of Tourism, Government of India are entitled to be granted Bar licences. Thereafter, the Foreign Liquor Rules under the Abkari Act of 1077 has also been amended, to give effect to the Abkari Policy. Since as per the new Abkari Policy, only hotels classified as Five Star and above are entitled to be granted bar licences, all existing bar attached hotels have been issued with notices by the Excise Commissioner informing them that, their bar licences would stand cancelled on the expiry of 15 days of the date of such notices. The hotels that face cancellation of their Bar licences (FL - 3 licences) have filed these writ petitions challenging the Abkari Policy, the consequential amendments to the Foreign Liquor Rules and the notices issued to them, terminating their bar licences.

2. The petitioners in these writ petitions are mostly hotels having three star classification. Three writ petitions, WP (C) Nos. 23391 of 2014, 23528 of 2014 and 22460 of 2014 relate to two star hotels. The hotel in WP (C) No. 22785 of 2014 has no star classification. The petitioners in WP (C) No. 22203 of 2014, 22993 of 2014, 23081 of 2014, 23179 of 2014, 23262 of 2014, 23317 of 2014, 23446 of 2014, 23569 of 2014, 22219 of 2014, 23896 of 2014, 22776 of 2014, 24048 of 2014, 23167 of 2014, 22410 of 2014, 23399, and 24926 of 2014 are filed by hotels having either Four Star or heritage category certification. WP (C) No. 24128 of 2014 is filed by the Kerala Bar Hotels Association and two others. The remaining writ petitions are filed by persons conducting three star hotels. Irrespective of their categorisation into Three Star or Four Star, Heritage etc., all the petitioners challenge the Abkari Policy of the State and the consequential amendments. A wide spectrum of arguments have been put forward, attacking the constitutionality of the Abkari Policy, alleging violation of the fundamental rights enshrined in Art.14 and Art.19(1)(g) of the Constitution, besides violation of the parent enactment, the Rule Making power conferred on the State by the Abkari Act and even violation of the Rules of Business of the Government. Before addressing the contentions advanced before me, it is necessary to have an overview of the scenario prevalent in the State of Kerala in relation to the trade of liquor.

3. The Enactments applicable and control measures adopted.
The Abkari Act , 1077 is a pre - constitutional enactment, initially passed by His Highness the Maharaja of the erstwhile State of Cochin on the 5th of August, 1902 as Act 1 of 1077 (Malayalam Era). The Act was later on extended to the entire State of Kerala by Act 10 of 1967. The Foreign Liquor Rules enacted in exercise of the powers conferred by S.10, S.24 and S.29 of the deal exclusively with the grant of licences to vend, what is described as the Indian Made Foreign Liquour (IMFL). Apart from the of 1077, there is another enactment by name, the Prohibition Act , 1950, which prohibits import, export, transport or possession of any liquor or intoxicating drug, its manufacture and dealing, including tapping of toddy from any trees, in short, imposing total prohibition in the State of Kerala. However, S.2 of the said enactment has conferred power on the Government to suspend the operation thereof by issuing a notific