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2026 Supreme(Online)(Mad) 43836

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. R. Swaminathan, J
P. Saravanan – Appellant
Versus
State of Tamil Nadu – Respondent
W.P. No. 20028 of 2026|W.M.P. Nos.21410 and 21415 of 2026



Advocates:
For the Appellants/Petitioners: V. Ramanareddy
For the Respondents: Vijay Narayan, L.S.M.Hasan Fizal, T.Gowthaman, K.Sathishkumar

A private party cannot invoke public law jurisdiction to challenge state policy decisions where the grievance arises purely from a commercial contractual or licensing relationship, as such matters fall under the jurisdiction of civil courts.

Headnote:The petitioner challenged a press release mandating the closure of several retail liquor outlets, alleging it to be inconsistent with the underlying liquor retail vending rules and ultra vires the prohibition act. The court examined whether the decision, made without a formal government order, was justiciable at the instance of a private contractor/lessor. The court found that the petitioners lacked locus standi because their grievances stemmed from a commercial lease and licensing relationship rather than a public law injury, and further held that the state's policy decision aligned with the constitutional directive of prohibition. The central issue was whether a private party could invoke public law remedies to challenge a policy decision concerning the closure of retail outlets in which they had a commercial interest. The ratio decidendi holds that disputes arising from lessor-lessee or licensee-licensor relationships are essentially commercial in nature and must be adjudicated before civil courts, and that a writ petition is not the appropriate avenue to test the correctness of state policy that is otherwise in consonance with constitutional objectives under Article 47. The writ petition stands dismissed, with a directive for the refund of deposited amounts upon submission of a proper representation, and there shall be no order as to costs.

Table of Content
1. factual background involving a challenge to the closure of liquor outlets by a lessor. (Para 1 , 2 , 3)
2. determination that disputes arising from commercial relations are not maintainable via public law remedies. (Para 4 , 5)
3. direction regarding refund of deposits and final dismissal of the petition. (Para 6 , 7 , 8)

ORDER

Heard Mr.V.Ramanareddy, learned counsel appearing for the petitioner, Mr.Vijay Narayan, learned Advocate General assisted by Mr.L.S.M.Hasan Fizal, learned Additional Government Pleader for respondent Nos.1 to 3 and Mr.T.Gowthaman, learned Additional Advocate General assisted by Mr.K.Sathishkumar, learned counsel for respondent Nos. 4 to 6.

2. The writ petitioners are owners of the premises bearing Door No.2/4, Venkatakrishna Road, R.A.Puram, Chennai - 600 028, which was leased out in favour of the fifth respondent Corporation to enable running of a liquor outlet with an attached Bar for which licence was granted to the petitioners herein. The petitioners thus don two hats. They are the landlords as well as licensees. Following the change of State Government, a policy decision has been taken to close 717 TASMAC shops across the State of Tamil Nadu by taking note of their location.

3. The learned counsel for the petitioner submits that without there being a formal Government Order, merely based on the strength of a press release effected by the third respondent on 12.05.2026, the shop was closed. He wants this Court to declare such a decision as null and void. He pointed out that the petitioners had invested a substantial sum of money with the fond hope that they would get regular income from the TASMAC for a reasonable period. He contends that the petitioners had been put to considerable financial loss on account of the impugned decision.

4. I am not swayed by the said submission. As rightly pointed out by the learned Advocate General, the petitioners do not have any direct relationship with the State. They had only lessor-lessee and licensee-licensor relationship with the TASMAC. If the petitioners suffer any legal injury as a fall out of the decision taken by TASMAC, their remedy for the petitioners is only before the civil Court. They cannot be permitted to invoke the public law remedy.

5. I need not go into the question whether, without there being a formal Government Order, there can be enforcement of such policy decision. It is for the TASMAC, the fourth respondent which has been running the liquor outlet. They have chosen to abide by the direction issued by the Hon'ble Chief Minister. The petitioners have no locus standi in the matter. It is not for the Writ Court to test the correctness of the said decision. Article 47 of the Constitution of India emphasises that the States shall endeavour to promote prohibition as a policy. The impugned decision is in consonance with the said Constitutional objective. I, therefore, do not find any ground to grant the relief.

6. The learned counsel for the petitioners states that a sum of Rs.18,00,000/- had been deposited by the petitioners with the fourth respondent.

7. The learned Advocate General informs this Court that whatever amount that is due to be refunded to the petitioners, will be refunded within a period of three (3) weeks from the date of submission of a proper representation by the writ petitioners.

8. With the above observation, the Writ Petition stands dismissed. There shall be no order as to costs. Consequently, the connected Miscellaneous Petitions are closed.

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