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TMI Blog2002 (8) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... ed area basis, taking the average privilege fee of the last three years and providing for some suitable increase. It was also stipulated that the licensee should lift the minimum off-take fixed for the shop by the licensing authority and in case of failure to lift the same, the licensee will be liable to pay a penalty in proportion to the loss of revenue due to non-lifting of stocks and if there is still further default, then the licence would be liable to be cancelled. In accordance with the aforesaid policy decision, amendments to the Tamil Nadu Liquor (Retail Vending) Rules, 1989 were made, which were issued under G.O.Ms. No. 115 dated 22nd of June, 2001. The Prohibition Commissioner also recommended a new licensing system for grant of licences to the Indian made foreign liquor retail vending shops for the block year 2001- 2004, which was accepted by the State Government and the necessary amendments to the Retail Vending Rules were made. Under Rule 13 of the amended rules, when the number of eligible applications does not exceed the number of shops notified for an area, then all applicants shall be selected for the grant of privilege. But when the number of applications in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r augmenting the excise revenue, the Government should consider whether instead of renewing the licences of the existing licensees, all the shops may be allotted afresh in accordance with earlier G.O.Ms. No. 115 dated 22nd of June, 2001. In other words, it suggested to have a fresh draw of lot. In accordance with the aforesaid recommendations contained in G.O.Ms. No. 128, the State Government passed the necessary orders, directing that the provision for renewal of licences prescribed in Rule 14 of the Tamil Nadu Liquor (Retail Vending) Rules, 1989 be repealed and all the 7000 shops including the re- categorised shops shall be disposed of, as per the procedures laid down in G.O.Ms. No. 115 dated 22nd June, 2001. Consequential amendments of certain rules were also made. The existing holders of the privilege in question who had obtained licences for carrying on the business for the excise year 2001-2002, approached the High Court of Madras by filing writ petitions, challenging the validity of the Government Order Nos. 128, 129 and 130. The Learned Single Judge, on entertaining the writ petitions, granted interim orders on 16th of July, 2002, directing ad hoc renewal of licences for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2001-2002 and held by the petitioners and renew the licence of the petitioners for the excise year 2002-2003 on the petitioners' remittance of the privilege amount on the basis of the amount fixed in G.O.Ms. No. 129 dated 8.7.2002 and also taking into account the re- categorisation of the shops for the purpose of levy of the privilege amount. (iii)The above facility of renewal to the petitioners shall be made available if the petitioners remit the requisite amounts on or before 31st of July, 2002. (iv)For any reason, if there is a delay in renewal, the petitioners shall be entitled to vend the Indian Made Foreign Liquor in retail on payment of the proportionate privilege amount till the grant of licence. (v)The Government, the Commissioner and all the District Collectors shall be entitled to re-locate the shops out of 7,000 at the places they feel expedient, but only after safeguarding the shops which are being run by the petitioners. It is this order of the Division Bench of the Madras High Court, which is the subject matter of challenge in all the special leave petitions. After hearing Mr. K.K. Venugopal, the learned senior counsel, appearing for the State o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand contended that the High Court was fully justified in striking down only that part of the government order which was held to have no nexus with the object of augmentation of excise revenue. He further contended that the licensees are agreeable to pay the privilege fee as decided by the Government and also would be bound by the limit of off-take of liquor to be decided by the excise authorities. According to Mr. Chidambaram, there is no error in the impugned judgment, which requires any interference by this Court in exercise of powers under Article 136 of the Constitution. We have carefully considered the rival submissions at the Bar as well as the decision cited in support of the contention raised. So far as the trade in noxious or dangerous goods are concerned, no citizen can claim to have trade in the same and the intoxicating liquor being a noxious material, no citizen can claim any inherent right to sell intoxicating liquor by retail. It cannot be claimed as a privilege of a citizen of a State. That being the position, any restriction which the State brings forth, must be a reasonable restriction within the meaning of Article 19(6) and reasonableness of the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of the Act and the rules to be arbitrary. We are, therefore, not persuaded to interfere with the conclusion of the High Court, so far as it deals with the dispensing with the right of renewal of the existing licensees under the present set of G.O.Ms. which fell before the High Court for consideration. Necessarily, therefore, the appropriate excise authority will have to decide the case of the applicants for renewal of the licences in accordance with the Rules as well as the other conditions of the licences. Mr. Chidambaram very fairly stated that none of the respondents have any grievances to be governed by the rules and conditions of licence including the conditions providing for a minimum off-take. But the manner in which the High Court has issued the directions, appears to us not to be in conformity with the rules for issuance of a mandamus. Once the court comes to the conclusion that certain provisions of the Act or the Rules of the Government order is arbitrary, then the Court would strike down the same, leaving the matter for the appropriate authority under the statute to deal with the cases of the applicants. In that view of the matter, the directions containe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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