SUPREME COURT OF INDIA
K.S. RADHAKRISHNAN,DIPAK MISRA
STATE OF KERALA – Appellant
Versus
KANDATH DISTILLERIES – Respondent
C.A. No.-001642-001642 / 2013
22-02-2013
RAMESH BABU M. R.M. P. VINOD
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JUDGMENT
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REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 1642 OF 2013
[Arising out of SLP (Civil) No. 9098 of 2009]
State of Kerala and Others
.. Appellants
Versus
Kandath Distilleries
.. Respondent
J U D G M E N T
K. S. RADHAKRISHNAN, J.
1.
Leave granted.
2.
We are, in this appeal, concerned with the question whether
the High Court can issue a Writ of Mandamus under Article 226 of
the Constitution of India, directing the State to part with its
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exclusive privilege, in the matter of granting licence for
establishing distilleries under the Foreign Liquor (Compounding,
Blending and Bottling) Rules, 1975 (for short “1975 Rules”) read
with Section 14 of the Abkari Act (for short “the Act”).
3.
M/s Kandath Distilleries, respondent herein, claimed to have
submitted an application dated 12.1.1987 before the
Commissioner of Excise for a licence to establish a compounding,
blending and bottling unit in the Palakkad District. Few others
had also filed similar applications for licence for setting up
distillery units in the State of Kerala. All of them were directed to
first obtain the approval of the Government of India for the setting
up of new blending and bottling units and, thereafter, to approach
the State Government. This Court, however, vide its judgment
dated 29.1.1997 in Writ Petition No. 322 of 1996 (Bihar
Distillery and Another v. Union of India and Others) took
the view that the power to permit the establishment of any
industry engaged in the manufacture of portable liquors, including
Indian Made Foreign Liquors (IMFLs), beer, country liquor and
other intoxicating drinks is exclusively vested in the respective
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State Governments. Further, it was also held that the power to
prohibit and/or regulate the manufacture, production, sale,
transport of consumption of such intoxicating liquors is equally
that of the States.
4.
We notice, during the year 1998 and prior to that, the
Commissioner of Excise and the State Government had received
large number of applications for setting up of distillery units in
various parts of the State. The Commissioner of Excise or the
State could not have entertained all those applications and
granted the licences for the setting up of large number of
distillery units in the State. The State Government, however,
entertained four applications favourably and accorded its
approval under Section 14 of the Act. The State Government, vide
GO (Rt.) No. 291/98/TD dated 20.5.1998, examined the
application submitted by M/s Amrut Distilleries in detail and
granted approval for issuing a licence by the Excise Commissioner
for the establishment of a distillery unit for the manufacture of
IMFLs at Kanjkode village in the Palakkad District. The
Government also, vide its order dated 6.8.1998, examined the
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application of M/s Empee Distilleries, Madras, and accorded
approval for the grant of licence by the Excise Commissioner for
establishing a distillery unit at Kanjkode village in the Palakad
District. The application submitted by M/s K. S. Distilleries,
Kannur was also considered by the State Government and
granted permission to the Excise Commissioner to issue a licence
for a distillery unit to be established at Kannur, vide order dated
18.8.1998. The application of M/s Elite Group of Companies was
also favourably considered by the Government and accorded
permission to the Excise Commissioner for issuing the necessary
licence for establishing a distillery unit at Trichur.
5.
M/s Kandath Distilleries (respondent) having noticed that its
application submitted in the year 1987 for setting up the unit in
the Palakkad District was not considered, filed a Revision Petition
before the Minister for