Compliance with payment of arrears is necessary for license renewal under the Kerala Toddy Workers Welfare Fund Board regulations.

J U D G M E N T

The petitioner is in default of advance contribution payable to the Kerala Toddy Workers Welfare Fund Board for the year 2025-26. The arrears is stated to be Rs.19,50,505/- excluding interest. The petitioner is before this court seeking a direction to the 2^nd respondent to permit him to clear the liability in installments and for a further direction to the Board to issue clearance certificate to enable the petitioner to apply for the renewal of licence for the year 2026-27.

2. The learned Standing counsel appearing for the Kerala Toddy Workers Welfare Fund Board submits that going by the provisions of Kerala Abkari Shops Disposal Rules , 2002 (hereinafter referred to as 'the 2002 Rules), under Rule 5 (3) (iii), at least 50% of the arrears have to be remitted before a clearance certificate is issued. It is submitted that if the petitioner remits 50% of the arrears immediately, the balance amount can be permitted to be paid in some installments.

3. Having heard the learned counsel for the petitioner and the learned Standing counsel appearing for the Toddy Workers Welfare Fund Board and having perused the provisions of the 2002 Rules, I am of the view that there is considerable merit in the contention taken by the learned counsel for the Welfare Fund board that unless 50% of the arrears is remitted by the petitioner, he is not entitled to any clearance certificate for the purpose of renewal of licence for the year 2026-2027. Rule 5 (3) (iii) of the 2002 Rules reads thus:-

“5. The Grant of privilege of vending Toddy shall be subject to the following conditions, namely:--

xxx xxx xxx (3) No applicant is eligible for the privilege of any group range if he --

xxx xxx xxx (iii) is a defaulter of Abkari arrears, or any other arrears due to the Kerala Toddy Workers Welfare Fund or the Kerala Abkari Workers Welfare Fund unless he produces from the Circle Inspector of Excise, the Authority of the said Welfare Fund Board or any other officer authorised in this behalf as the case may be a certificate to the effect that no dues are outstanding against him or that he has remitted before the date of sale of group range 50% of the arrears pending against him as on the date of sale notification;”

It is clear from a reading of Rule 5 (3) (iii) of the 2002 Rules that for the purpose of obtaining a licence for the year 2026-2027 the petitioner will have to remit atleast 50% of the arrears pending against him as on the date of sale notification. In such circumstances, this writ petition is disposed of directing that if the petitioner remits a sum equivalent to 50% of the amount of Rs.19,50,505/-, a clearance certificate shall be issued to him and he shall be permitted to clear the balance liability together with any statutory interest in 8 equal monthly installments. The petitioner shall pay the amount equivalent to 50% on or before 30-04-2026. The subsequent installments together with statutory interest shall be paid in 8 monthly installments commencing from 30-05-2026. The subsequent installments shall be paid on or before the last working day of succeeding months. If the petitioner does not pay any of the amounts as directed, he lose the benefit of this judgment.

Writ petition is ordered accordingly.