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1972 Supreme(SC) 294

A. N. RAY, D. G. PALEKAR, I. D. DUA, M. H. BEG, S. M. SIKRI
Amar Chandra Chakraborty – Appellant
Versus
Collector Of Excise, Government Of Tripura – Respondent


Judgement Key Points

Key Points: - The appellant challenged withdrawal order citing lack of public notice under proviso to Section 22(1) and questioned Section 43's scope. (!) - The court held that failure to give public notice under Section 22(1) is a valid ground contributing to withdrawal under Section 43, and that the withdrawal can be based on major policy decisions. (!) - It was determined that Section 43 permits withdrawal for causes other than those specified in Section 42, provided the 15-day notice and remittance are observed. (!) (!) (!) - The authority withdrawing a license may be the Collector within the framework of Section 43, and the order can be sustained if consistent with statutory provisions and public policy considerations. (!) (!) - The impugned order’s compliance with natural justice is evaluated in light of the statutory scheme, with emphasis on timely notice and opportunity to show cause. (!) (!) - Public notice requirement under Section 22(1) is essential to prevent favoritism and ensure accountability in granting exclusive privileges. (!) - The state’s policy decision to divide licenses and move to tender-cum-auction was a valid reason for withdrawal of the appellant’s five-year license. (!) - The judgment rejectsArt. 14 and Art. 19 challenges to Section 43, upholding the reasonableness of regulations on the liquor trade given its social impact. (!) (!) - The licensee is entitled to remittance of the 15-day fee if withdrawal occurs, and any prepaid or deposits are refundable after deduction of any due amounts. (!) (!) - The appeal is dismissed, and the impugned judgment is upheld regarding the validity of withdrawal and grounds therefor. (!) (!)

What is the legality and validity of withdrawing a license under Section 43 of the Bengal Excise Act as extended to Tripura, in light of the requirements of public notice under Section 22(1) and the grounds for withdrawal under Section 42?


Judgment

DUA, J. :- This appeal is by special leave. The appellant assails the order of the Judicial Commissioner, Tripura dated June 25, 1971 dismissing his petition under Art. 226 of the Constitution challenging the order of the Collector of Excise, Tripura, dated July 5, 1970.

2. The appellant was granted licence for the period April 1, 1963 to March 31, 1966 for running a ware-house for supply of country liquor to excise vendors in the territory of Tripura. The Bengal Excise Act, 1909 (hereinafter called the Act) had been extended to that territory on August 1, 1962. The appelant s licence was subsequently extended for a further period of two years ending March 31, 1968. On November 6, 1967 the appellant applied to the Excise Collector praying that he should be permitted to continue the supply of country liquor for a period of five years commencing April 1, 1968. The Collector recommended the appellant s case to the Government on November 18, 1967 for extension of his licence for a further period of only two years. On December 22, 1967 the Collector of Excise, Tripura, Agartala, wrote to the appellant that he had been appointed by the Chief Commissioner "a contractor for the supp














































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