1984 (3) TMI 421 - SC - Indian Laws

Summary

Issues Involved:
1. Jurisdiction of the High Court to issue a writ of mandamus.
2. Whether the Commissioner acted in breach of the rules of natural justice.

Summary:

Issue 1: Jurisdiction of the High Court to Issue a Writ of Mandamus
The Supreme Court examined whether the High Court had the jurisdiction to issue a writ of mandamus directing the Commissioner to grant a licence to Messrs Majestic Bottling Company without the prior approval of the State Government as required u/r 7 of the Tamil Nadu Arrack (Manufacture) Rules, 1981. The Court held that a writ of mandamus could not compel the Commissioner to grant the licence as the discretion to grant or refuse the licence ultimately lies with the State Government. The High Court exceeded its jurisdiction by issuing such a writ, as the statutory requirement of prior approval from the State Government under r. 7 would be rendered otiose. The proper course would have been to issue a writ of mandamus directing the Commissioner to redetermine the question and, if in favor, to seek prior approval from the State Government.

Issue 2: Breach of Rules of Natural Justice
The Court also considered whether the Commissioner acted in breach of the rules of natural justice by not furnishing Messrs Chingleput Bottlers a copy of the report submitted by the Collector and other material gathered during the inquiry. The Supreme Court held that the Commissioner was not obligated to disclose the sources of adverse information or provide a copy of the report, as the grant of a liquor licence is a matter of privilege and not a right. The rules of natural justice require that the Commissioner act fairly, which was adhered to by issuing a questionnaire and conducting a hearing. The High Court had rightly dismissed the appeal by Messrs Chingleput Bottlers, as there was no error of jurisdiction or violation of natural justice by the Commissioner.

Conclusion:
The Supreme Court allowed the appeal by the State Government, setting aside the High Court's order for a writ of mandamus, and remanded the case to the Commissioner for a fresh decision according to law. The appeal by Messrs Chingleput Bottlers was dismissed.