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1994 (12) TMI 335

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..... t') pending further investigation . (2.) NOTICE before admission was ordered on 15-11-1994 observing as follows:- What was found when the petitioner's shop was inspected on 17-10-1994 was that the petitioner purchased considerable stock of liquor from Messers Sri Laxmi Wines, Penumantra. No non-duty paid stock was found in the premises of the shop. As per the conditions of the license in Form F.L.24 the petitioner should purchase his stocks for sale only from IML Depot of A.P.B.C.L. Limited, Chagallu only. It is stated that, in the circumstances, the Excise Sub-Inspector, Attili, registered a case in Crime No. 1/94-95 of Attili range under Section 36(b) of the Andhra Pradesh Excise Act, 1968 (for short 'the Act'). O .....

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..... , Maddur, v. Superintendent of Excise, Mahaboobnagar (1) 1984 (2) APUJ 1 (F.B). He also submits that even though inspection was made on 17-10-1994, till 2-11-1994 no suspension order was made and the present is not a case of adulteration or the like. In the circumstances, prima facie I am satisfied that the impugned order of suspension does not satisfy the requirements of law. In the circumstances, the order of the 2nd respondent in his RC. No. 2770/ 94/A4 dated 2-11-1994, shall be suspended pending further orders. The 2nd respondent herein i.e., Excise Superintendent, Eluru, West Godavari district gave his counter affidavit dated 3-12-1994. On the question of his power to suspend the petitioner's F.L.24 license as he did, in para .....

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..... 1984(2) A.P.L.J. 1 (F.B) as follows :- However we must make it clear that this incidental or ancillary powers cannot be exercised in a routine way or as a matter of course. The licensing authority is bound to exercise the discretion reasonably, bona-fide and without negligence considering the circumstances of the case when such interim suspension is necessary. If it is possible to give an opportunity to the petitioner and the circumstances do not warrant such a drastic step, the licensing authority is bound to afford an opportunity and the power of suspension pending enquiry should not be exercised as an invariable rule or mode of making an enquiry. Further the suspension pending the enquiry should not be allowed to continue for an und .....

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..... conditions of the A.P.F.L. and I. L. Rules 1970. The licensee has willfully violated license conditions and rules and indulged in malpractices U/S. 36(b) of A.P. Excise Act. Hence, the shop license of M/s. Sri Devi Wines, Attili in Form FL.24.is hereby suspended U/S. 31(1) of A. P. Excise Act with immediate effect pending further investigation. The malpractice referred to is under Clause (b) of sub-section (1) of Section 36, which is as follows :- (b) willfully does or omits to do anything in breach of any of the conditions of his licence or permit not otherwise provided in this Act; Sub-section (1) of Section 36 provides for penalty for misconduct of licensees and what is mentioned in Clause (b) is described as an offence .....

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..... iscloses that the 2nd respondent had already concluded that the petitioner willfully violated license conditions and the rules and indulged in malpractices - that is a finding under Clause (b) of subsection (1) of Section 31 of the Act, which is as follows :- (b) in the event of any breach by the holder thereof, or by any of his servants or by any one acting on his behalf with his express or implied permission, of any of the terms and conditions thereof If the impugned suspension order is to be viewed as a final order of suspension, it is undoubtedly bad for violating the statutory requirement of opportunity under the proviso to sub-section (1) of Section 31 of the Act. (3.) IN the circumstances, the Writ Petition is allowed with cost .....

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