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TMI Blog1976 (4) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... they were the highest bidders for the country liquor vends at various places in the State of Punjab, and the auctions were knocked down in their favour. 3. Since the questions involved and basic facts with immaterial variations are common, it will be sufficient to refer to the facts of the case giving rise to Civil Appeal 1641 of 1971, in which only arguments have been specifically addressed to us by Shri T.S. Munjral, Counsel for the appellant. The appellant firm in this case gave the highest bids of ₹ 2,64,000/ and ₹ 1,03,000/-, respectively, and got licences in Form L-14 for retail country liquor vends at Jandiala and Bundala in Jullundur District. The material conditions of the licences announced at the auction and accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry liquor, i.e., over and above the quota fixed for his vend or vends on payment of proportionate additional license-fee. 6. According to Condition No. 26, subject to the directions issued by the Excise Commissioner from time to time regulating the supplies from different distilleries in Punjab for various districts/areas, the licensed vendors were free to obtain their supplies of country spirit, wholly or partly from any of the licensed distilleries or the licensed ware-houses in Punjab. 7. Under Condition No. 27, the retail vendors were to obtain their requirement of country spirit from the whole-sale venders. Rule 25(2) of the Excise Rules provided: Subject to availability and genuine demands of the area concerned the Excise C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ach the expected turnover of business and yield of income there from. 9. The Department issued demand notices for the recovery of the deficiency or loss in licence fee as arrears of land revenue. 10. On the proceeding facts, the appellants instituted the writ petitions for quashing these notices of demand and prayed for a mandamus directing the respondents not to make recovery of any sum due except with reference to the quantity of liquor actually lifted and sold by the appellants. 11. They further prayed that the respondents be injuncted from blacklisting the appellants. 12. These demand notices were challenged on various grounds. It was contended : that the provisions of Punjab Excise Act and the Rules framed there under relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly installments of the licence fee but he hid, without any request from the appellant revoked. The cancellation by an order dated March 14, 1989. It is also maintained that during the interregnum between this cancellation and revocation of the cancellation, the vend had remained closed. Secondly, the making of the supplies of liquor conditional on payment of the proportionate amounts of the licence fee, amounted to a breach of the conditions of the contract consequently the Revenue was not entitled to anything more than proportionate licence fee relatable to the quantity of liquor actually supplied to and lifted by the appellants. 16. In our opinion, neither of these contentions is sustainable. 17. Mr. Munjral has been unable to point ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the licence year. 18. The impugned demands have been raised in this case in respect of the balance of the licence fee which remains unpaid after adjustment of the amounts due against the security deposits. 19. In Har Shankat's case (supra) this Court disapproved the conduct of such liquor licensees who offer bids with full knowledge of the terms and conditions attaching to the actions and thereafter try to wriggle out of the contractual obligations arising out of the acceptance of their bids by residing to Article 226 of the constitution. Speaking for the Court, Chandrachud J observed: The announcement of conditions governing the auctions were in the nature of an invitation to an offer to those who were interested in the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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