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TMI Blog2006 (7) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... iod for which the applications for grant of licences had been granted has also expired. We dismiss these appeals. - C.A. 2802 OF 2006 - - - Dated:- 6-7-2006 - S.B. Sinha P.K. Balasubramanyan, JJ. JUDGMENT Leave granted. The Government of National Capital Territory of Delhi formulated an excise policy in 2002 permitting sale of Indian Made Foreign Liquor (IMFL) through private parties upon issuance of L-52 licences. Upto the year 1979, prohibition was in force in the State. From 1979 to 2003, IMFL and Country Liquor were being sold exclusively through public sector undertakings. Pursuant to or in furtherance of the said purported policy, however, an advertisement was issued inviting applications for grant of L-52 licences for retail sale of IMFL for the licencing year 2004-05 in commercial areas subject to the following conditions: (i) No fresh L-52 licence in the private sector would be granted if the location of the proposed vend was within 250 meters of an existing retail vend. (ii) The applicant should be in actual physical possession of a shop admeasuring 500 sq. ft. in an approved and recognized commercial complex. (iii) Proposed vend should not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Surinder Katiyal, the Appellant withdrew his application so as to enable him to file another application at a different site. Kuldeep Singh preferred an appeal against the order rejecting his application before the Excise Commissioner. It was allowed by an order dated 11.5.2005 and the matter was remitted to the Collector, Excise with a direction to conduct a fresh inspection to ascertain the facts on a finding that the earlier inspection had not been carried out properly. Pursuant thereto a fresh inspection of the premises was carried out in May, 2005. The Appellants herein filed writ petitions before the High Court inter alia alleging that their applications had not been considered in terms of the excise policy of the State. Directions had been issued in the case of Sadaram Gupta to the Respondents herein to dispose of his application for grant of L- 52 licence for running a retail liquor vend on the same terms and conditions as well as the policy existing on or before 16.9.2005. In or about the month of March, however, there was a huge public outcry in regard to the excise policy of the State. Resident Welfare Associations and elected representatives also lodged prote ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. (vi) In view of the above and the fact that an order of rejection is necessitated by the policy directions of the Government, a suitable and reasoned order may be passed by the Collector (Excise) in the instant case. The said proposal was approved by the Finance Minister who was competent therefor under the Rules of Executive Business. The said decision of the Finance Minister was ratified by the Council of Ministers. The High Court, however, in the writ applications pending before it directed that the decision of the competent authority may be placed on record within three days. The Collector, Excise rejected all the applications received pursuant to the advertisement dated 22.11.2004 relying on or on the basis of the purported policy decision of the Government taken on 16.9.2005 by an order dated 20th September, 2005. However, having regard to the earlier orders passed in the writ petitions, a learned Single Judge of the High Court allowed the writ petitions directing the State to grant licences to the Petitioners within one month in the event the writ petitioners have fulfilled all the requirements therefor, before 16.9.2005. Letters Patent Appeals filed thereaga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y decision, they indisputably had a right to vary, amend or rescind the same. The effect of a policy decision taken by the State is to be considered having regard to the provisions contained in Article 47 of the Constitution of India as also its power of regulation and control in respect of the trade in terms of the provisions of the Excise Act. We, however, must express our dissatisfaction as regards the manner in which the cases have been dealt with. If a policy decision had been taken by a competent authority, viz., the Finance Minister as far back on 9th March, 2005, we fail to see any reason as to how the officials of the State could proceed with the processing of the applications filed by the applicants even thereafter. The explanation sought to be offered that the same was done on the premise that the Cabinet may not approve the same, in our opinion, is an after-thought. Although, other applications were processed, the applications filed by the Appellants who had filed writ applications before the Delhi High Court were not considered. It is beyond any cavil that the cases of the applicants were required to receive due consideration at the hands of the competent authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exclusive right or privilege of manufacturing and selling liquor. But when the State decides to grant such right or privilege to others the State cannot escape the rigour of Article 14 [See also Ashok Lenka v. Rishi Dikshit Ors. 2006 (4) SCALE 519.] Moreover, if the equality clause applied, the State could not have adopted different procedures for different applicants. [See Ramana Dayaram Shetty v. International Airport Authority of India and Others (1979) 3 SCC 489, para 10] The learned Additional Solicitor General furthermore failed to give any satisfactory answer to a query made by us as to how on the face of such policy decision which according to the State was strictly adhered to, licences had been granted to six other persons. We would, however, like to place on record the statements made by the learned Additional Solicitor General that the State would take action for cancellation of the licences of the said licensees. The State had adopted a policy to grant licence on first-cum-first- serve basis. It had in terms of the public notice dated 7.2.2005, intended to grant licences for 70 vends. Not only the terms and conditions for grant of such licences have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion so as to enable him to apply for another vend. He filed such an application only on 8.2.2005 which was acknowledged, as noticed hereinbefore, by the State in terms of its letter dated 6.5.2005. The said letter dated 6.5.2005 did not contain any promise that the licence would be granted by a particular date. Even otherwise, it was impermissible for the Respondents to specify a date on which the licence shall be granted keeping in view the fact that it was required to process a large number of applications. It is, thus, not a case where the doctrine of legitimate expectation would be attracted. The State issued a public notice on 7.2.2005. Even prior thereto, the State notified that only those applications which had been received by the Department would be considered and no more. The Appellant, Surinder Katiyal evidently filed his application on 8.2.2005. Still his application had been processed. Some correspondences had been entered into in relation thereto. It is not in dispute that the State received a large number of applications. It was required to process all the applications. While processing such applications, inspections of the proposed sites were to be carried ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otted by the Court for its consideration, it had a legitimate or settled expectation to obtain the sanction. In our considered opinion, such settled expectation , if any, did not create any vested right to obtain sanction. True it is, that the respondent Company which can have no control over the manner of processing of application for sanction by the Corporation cannot be blamed for delay but during pendency of its application for sanction, if the State Government, in exercise of its rule-making power, amended the Building Rules and imposed restrictions on the heights of buildings on G.T. Road and other wards, such settled expectation has been rendered impossible of fulfilment due to change in law. The claim based on the alleged vested right or settled expectation cannot be set up against statutory provisions which were brought into force by the State Government by amending the Building Rules and not by the Corporation against whom such vested right or settled expectation is being sought to be enforced. The vested right or settled expectation has been nullified not only by the Corporation but also by the State by amending the Building Rules. Besides this, such a ..... 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