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2026 Supreme(Mad) 1697

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
N. SATHISH KUMAR, M. JOTHIRAMAN, JJ.
 
T. Sathiskumar – Petitioner
Versus
The State Government of Tamilnadu, Rep.by its Secretary, Department of Home, Prohibition and Excise – Respondent
WP.(MD)Nos.31562 & 31655 of 2025 and WMP.(MD)Nos.24735,24736, 24737, 24825, 24827 & 24829 of 2025
Decided On : 27-03-2026

Advocates Appeared:
For the Petitioner: Mr. M. Mohaboob Athif, for Mr. T. Palanichamy.
For the Respondents:Mr. P.T. Thiraviam, Government Advocate, Mr. H. Arumugam, Mr.K.Sanjai Ghandhi, Government Advocate, Mr. T. Lajapathi Roy, Senior Counsel for M/S.Roy and Roy Associates.

Licensing authorities must consider local resolutions and public interest before issuing liquor licenses; failure to adhere to statutory conditions can render such licenses unlawful.

Headnote:(A) Tamil Nadu Liquor (License and Permit) Rules, 1981 - Rule 19 - Tamil Nadu Societies Registration Act, 1975 - Licensing of private recreation clubs for liquor permits - Writ petitions challenging FL2 license issued without appropriate consideration of local opposition and public interest - Issuance of license undermined resolutions by village panchayat against liquor shops - Local needs and public health considerations requisite before licensing. (Paras 5, 20, and 24)

(B) Judicial Review - Writ jurisdiction - Courts must assess adherence to statutory provisions and community objections in licensing matters, particularly in respect to public interest and safety. (Paras 11, 12, and 21)

Facts of the case:
Two writ petitions were filed against the Commissioner of Prohibition and Excise for granting a liquor license to a recreation club in an area with historical opposition to alcohol sales. Petitioners argued that the licensing authority failed to consider local resolutions against liquor sales, thus violating established rules and community interests.

Findings of Court:
License issued by Prohibition and Excise Department was set aside due to failure to consider local opposition, community resolutions, and statutory rules in the licensing process, affecting public health and safety.

Issues: Whether the issuance of the FL2 liquor license violated community objections and relevant regulations, and if public interest considerations were adequately evaluated by the licensing authority.

Ratio Decidendi: The court emphasized the need for licensing authorities to thoroughly evaluate community needs and adhere to local resolutions against liquor shops prior to issuing licenses, reinforcing that public interest must not be compromised. The absence of adherence to statutory requirements necessitated canceling the license.

Result: The impugned FL2 license issued on 07.10.2025 was set aside.

Table of Content
1. factual background of petitioners' locality and objections. (Para 1 , 2 , 3)
2. petitioners argue against license issuance. (Para 5 , 6)
3. court's examination of petitioners' claims. (Para 10 , 11)
4. legal standards for license issuance discussed. (Para 19 , 21)

COMMON ORDER :

M. JOTHIRAMAN, J.

Under assail is the order passed by the Commissioner of Prohibition and Excise granting license in R.Dis.No.P and E. 2(1)/1194/2025 dated 07.10.2025. Two writ petitions have been filed in the name of Public Interest Litigation.

2. It is the case of the writ petitioner in WP.(MD)No.31562 of 2025 that his locality falls within Alanganallur Union, Vadipatti Takuk, Madurai District. The said union consists 37 village panchayat and 2 town panchayat and is having a population of approximately 1,30,000/- people. From the year 2020, the village people, especially women had conducted several agitations and protest over the establishment of TASMAC and other private bars in the said union and had successfully prevented the opening of any above shops in the said union. Alanganallur union is revered worldwide during the month of January towards Jallikattu and people from several parts of the country are visiting the said union. Alanganallur and Palamedu village does not have any liquor shop till date. It is came to the knowledge of the petitioner that the Commissioner of Prohibition and Excise Department, Chennai had granted FL.2 license to the eighth respondent/ Paulpandian to set up a private recreation club in violation of the rules and defeating the cultural values of the union.

3. It is the case of the writ petitioner in WP.(MD)No.31655 of 2025 that Alanganallur panchayat union consists 36 villages. In none of the village, there is no TASMAC outlet is functioning for the past five years. More particularly, Thandalai village, Pudupatti village and Mettupatti village, the village panchayats already passed resolution prohibiting the opening of TASMAC outlet by the Government. Alanganallur is the Town panchayat and in which also there is no TASMAC outlet is functioning. The Government is granting FL2 license for handling for liquors by the clubs in the course of their recreational activities. The 7th respondent club is registered under the Societies Act. They have obtained FL2 license from the Commissioner, Prohibition and Excise Department, on 07.10.2025. There are restrictions in granting FL2 license for newly formed societies. In order to overcome such situation, the 8th respondent and the Secretary of the 7th respondent club adopted a novel method and thereby, purchased the society, which is earlier functioned in the name of NDR Vaigai Sports Recreation Helping Club and changed the name as Pon's Recreation Club, Thandalai. In fact, respondents 7 & 8 are residents of Bethaniyapuram, Madurai and they are not resident of Thandalai village. On 29.01.2025 by changing the name, they obtained a certificate from the District Registrar, Madurai North. The third respondent Police Department withour proper verification had issued no objection certificate. The said certificate itself discloses non application of mind, since it discuss about Leo Recreation Club. The 7th respondent club itself is only a name sake club without actually functioning and without any proper members. By fabrication of documents, the society was registered and license was obtained. The impugned license issued by the Commissioner, Prohibition and Excise Department, Chennai dated 07.10.2025 is illegal, unlawful and against the principal of natural justice.

4. Since both the writ petitions have been filed as against the issuance of FL.2 license dated 07.10.2025, both writ petitions are disposed of by this common order.

5. The learned counsel appearing for the petitioner in WP.(MD)No.31562 of 2025 would submit that the eighth respondent club had earlier functioned as NDR Vaigai Sports Recreation Helping Club and had changed its name as Pons Recreation club, Thandalai only in

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