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TMI Blog1984 (3) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... onditions of licence. The opinion on this point arising year after year in respect of several licences issued under the Andhra Pradesh Excise Act has not been uniform. A Division Bench of this Court disposing off WA No. 587/77 and batch by Judgment dated 7th December. 1977 held that the appropriate Excise Officer has the power to suspend the licence as an interim measure which is incidental or ancillary to the power to cancel or suspend the licence . When this question came up before our learned brother Choudary, J. in WP No. 5971/80 and the Government Pleader sought to support the suspension of the licence on the language of S. 31 of the Andhra Pradesh Excise Act, 1968 and relied upon the above judgment, unable to agree - with the reasoning of that judgment and being of the view that suspension cannot be ordered as an interim measure without an express provision of law authorising it, referred the matter to a Bench for an authoritative opinion on this question. 2. In WP No. 3883/83 the licences of Adoni Group of toddy shops for the Excise year 1982-83 consisting of 51 shops were suspended. This action was based on a report of the Chemical Examiner in respect of the samples sei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding enquiry into the allegations of contraventions of licence and the provisions of the Act must, therefore, necessarily be adjudged in the background of the provisions of the Act and the Rules under which the licence is issued. 5. The A.P. Excise Act is an Act intended to consolidate and amend the-law relating to the production, manufacture, possession, transport, purchase, and sale of intoxicating liquor and drugs, the levy of duties of excise and countervalling duties on alcoholic liquor for human consumption and to provide for matters connected therewith in the State of Andhra Pradesh. This object is sought to be achieved by regulating the sale of intoxicants including liquor and toddy by providing the production, manufacture, possession, transport, purchase and sale thereof except under a lease and/or licence granted under the Act. Under the definition of liquor toddy is also included. Permits are required to be obtained under Chapter III of the Act for import and export and transport of all intoxicants. S. 9 prohibits import, export and transport of intoxicants except under a permit issued by an Officer not below the rank of the Excise Superintendent. For the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of more than one Dy. Commissioner. Provided that subject to such conditions as may be determined by the Commissioner, a licence for sale or buying granted under the excise law in force in any other part of India may be deemed to be a licence granted under this Act. (3) Nothing in this section shall apply to the sale of any liquor lawfully procured by any person for his private use and sold by him or on his behalf or his representatives in interest upon his quitting a station or after his decease. (4) Notwithstanding anything in sub-section (1) and (2), no club ora hotel shall supply liquor to its members or customers on payment of a price or any fee or subscription except under the authority and in accordance with the terms and conditions of a licence granted in that behalf by the Commissioner on payment of such fees as may be fixed by him according to scales of fees prescribed therefor. Section 28 of the Act occurring in Chapter IV relating to licences and permits lays down the form and conditions of licence and permits and it is required to contain such particulars as may be prescribed by Rules. It reads as follows:-- S. 38: Forms and Conditions of Licence etc.: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other manner, he shall do so with the prior approval of the Government. Such a licence is granted ordinarily by way of public auction. But Rule 3(1) authorises the Excise Commissioner to grant leases to Co-operative Societies of toddy tappers for more than one year otherwise than by way of auction in accordance with the Excise Policy laid down for the relevant excise year by the Government. The petitioner-society was granted a lease of right to sell toddy for a period of three years and licence was accordingly issued to the petitioner-society which was valid until the Excise year 1982--83 which ended on 30th Sept, 1983 Although the period for which the licence was issued to the petitioner--society expired during the pendency of the Writ Petition, as the consequences flowing from the suspension of the licence pending enquiry into the allegations of the contraventions of the licence under section 31 and the ultimate order made thereunder, attend beyond the period for which the licence is valid, the issue is still live and must be decided. Further, as already observed, the question arises much too frequently and calls for consideration. 8. Section 31 authorises cancellation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er S. 31 must be implied as an incidental or consequential power to the one conferred under S. 31 of the Act. In deciding whether such power exists or not regard must be had to several factors including the scheme of the Act and the specific provisions of the Act, and the Rules, the nature of the licence, the mischief sought to be remedied and the consequences of suspending the licence. As observed by S.A. De Smith in Judicial Review of Administrative Action (3rd Edn) at Page: 198 whether suspension of a licence should be preceded by notice and opportunity to be heard may depend on various factors-e.g., the degree of urgency involved, the duration of the suspension, whether suspension involves a finding of guilt, whether it entails material financial loss and whether it is a purely temporary measure pending full review (Hlookoff v. City of Vancouver (1968) 67 D.L.R. (2d) 199). 9. Under the Andhra Pradesh Excise Act the lessee enters into an agreement with the Government in the Excise Department through the competent Officer pursuant to the tease. On fulfillment of the conditions as to payment of the requisite deposits and fee, the lessee is granted a licence. On grant of leas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the expiry of the said month whichever is earlier. (2) The auction purchaser shall also be required in all cases where the monthly bid is in excess of ₹ 10,000/- to furnish a non-encumbrance certificate in respect of properties shown in his affidavit with stipulation that during the currency of the relevant lease the properties shown therein shall not be alienated. (3) Where a shop is assigned to a Tappers Co-operative Society or Tribal Arrack Co-operative Society or under Tree for Tapper Scheme or is withdrawn from auction and allotted to Tappers Cooperative Society or Tribal Arrack Cooperative Society, the Society need not deposit two months rentals). It shall however pay the annual rentals in equal monthly installments commencing from October. (4) All interest securing on fixed deposit receipts shall vest in the Government and may be adjusted towards the Government dues including interest, if any outstanding against the auction purchaser, and if there be no such dues, it shall be refunded to the auction purchaser at the end of the lease period. The lease amount or rental payable by the licences is very heavy while the licence fee is nominal. Rentals fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that S. 31 provides for cancellation or suspension of the licence on any of the grounds mentioned therein. That order may be made only after giving an opportunity to the licensee of making his representation against the action proposed to be taken for the allegation of breach of the conditions of the licence. It envisages an enquiry into the allegations made and an opportunity being given to the licensee to rebut the allegation. Only upon proof of the allegation of the contravention of the conditions of the licence-in this case, upon proof of the licence having adulterated toddy with Chloral Hydrate, the licence is liable to be cancelled or suspended Cancellation or suspension of a licence is thus an evil consequence visited upon the licensee for the contravention of the conditions of the licence. Such contravention exposes the licensee even to prosecution under S. 34 of the Act (Chapter VII), and on conviction he may be sentenced to imprisonment and to pay fine. When a licence is cancelled under S. 31 not only his right to sell liquor is taken away, but any other licence which he may be holding under the Act or under the Opium Act, 1878 are also liable for cancellation as la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the conclusion of an enquiry into the allegations of contravention of the conditions of licence. The enquiry Itself must be after notice to the licensee and after giving an opportunity to the licensee to make his representation against the action of suspension or cancellation of the licence proposed to be taken. The licence authorising sale of liquor does not provide for its cancellation or suspension at will. Even in the case of a licence or permit, which expressly provides for cancellation or suspension at will, proviso to sub-section (1) of Section 31 enjoins such an opportunity being given to the licensee before cancellation or suspension is ordered. The suspension envisaged by Section 31 is not a suspension pending enquiry, but is one visited upon the licensee for contravening the conditions of licence which include the provisions of the Act and the Rules. Not only there is no express provision in the Act or the Rules empowering the licensing authority or any other authority under the Act to suspend the licence as an interim measure, or pending enquiry in to the allegations of contravention of the conditions of licence, there is also no provision for suspension of licence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pay rental or on the determination of the rental to be paid by the Toddy Tappers Co-operative Society as per Rules. This rental is usually very high. Only when a lease is granted, as discussed above, the lessee becomes entitled to obtain a licence on payment of nominal fees. Rental is the main consideration for the grant of lease and the issuance of the consequent licence. The Excise Act is intended to raise revenue. Under the Act vending of liquor is prohibited, except under a licence granted by the Government on payment of rental and licence fee. As held in Assam State vs. Sristikar A.I.R. 1957, S.C. 414 rental forms the consideration for the grant of lease end the right to sell liquor is thus, so to say, purchased by the licensee from the Government. That right subsists so long as the licence granted subsists and so long as the licence is in force the licensee alone has the exclusive right to sell liquor in that particular area; no one else can compete with him. It is a valuable right acquired by paying consideration in the shape of rental Such a right, in our opinion, could not be taken away without following the elementary principles of natural justice. H.W.R. Wade in his ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness. There is no time limit fixed within which the enquiry should be completed. There is no provision to make good the loss incurred by the licensee on account of such suspension. The licensee cannot sue any one for illegally suspending his licence. In fact, sub-sec. (3) of section 32 says that the holder of a licence or permit shall not be entitled to claim refund of any fee paid or deposit made in respect thereof. No doubt, this provision relates to cancellation or suspension at the conclusion of the enquiry and not as an interim measure. Whether business is stopped at the conclusion of enquiry or pending the enquiry, the licensee suffers loss all the same. There is no provision for grant of compensation in any event. Further S-69 of the Act specifically protects every action taken under the Act in the following words: No suit or other legal proceeding shall lie against the Government or any Excise Officer or any other person empowered to exercise powers or to perform the functions under this Act for anything in good faith done or intended to be done under this Act. If the action of the Excise authorities in suspending the licence pending enquiry is held to be one env ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dental or consequential power. 15. Our learned brother Ramachandra Rao, J., in (N. Viswanadha Good another vs. Supdt. of Excise, RR Diet) W.P. No. 3176/1979 dealing with a case where the licensees complained that their request to send for analysis and report under R. 24 of the General Rules, one of the sealed sample bottle taken from the licensees shops and given to the licensees, was not complied with held:-- that the respondent is bound to send the sample given to the petitioners for chemical examination and take action only in the light of the result of analysis of the said sample. If any Departmental action is taken even before the sample given to the petitioners is sent for chemical analysis and the report is received, if will amount to disposing of the case prematurely and it will also be contrary to principles of fair-play . In that view of the matter he gave directions to send the sample for the report of (sic) Analyst and restrained the respondent from taking any action to cancel or suspend the licence. Though in that judgment the question whether the licence could be suspended pending enquiry was not specifically argued, the learned Judge, in our opinion, righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment Pleader it is necessary to concede as they have substantive power to grant and cancel a licence and if this power is not conceded it would render the enquiry ineffective and defeat the ultimate order or cancellation under Section: 31. Before conceding such power we must consider what are the consequences of conceding the power of suspension pending an enquiry in respect of such a licence. First it denies a notice and an opportunity to make a representation and a hearing. It puts him out of his business. It denies the tapper of his livelihood. He suffers heavy pecuniary loss. The suspension is for an indefinite period. There is no provision for compensating for the loss sustained due to such suspension. The licencing authorities are immune from all legal proceedings, even if license is ultimately found to have not contravened the conditions of licence and is exonerated under S. 31 and the licence is restored. We do not see why it is necessary to concede such a power when even the Act and the Rules envisage cancellation or suspension only on proof of contravention of conditions of licence. In order to make an enquiry into the allegations against the licensee, the licensee need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion summarily to revoke a licence with a decision not to grant a licence in the first instance may be still more un-realistic. Here the 'privilege' concept may be peculiarity in apposite, and its aptness has not been enhanced by the manner in which it has been employed in some modern cases. There ought to be a strong presumption that prior notice and opportunity to be heard should be given before a licence can be revoked. It should be especially strong where revocation causes deprivation of livelihood or serious pecuniary loss, or is dependent on a finding of misconduct. The presumption should be rebuttable in similar circumstances to those in which summary interference with vested property rights may be permissible. The privilege to vend liquor by grant of a licence need not be conferred and no citizen can claim it as of right. But, once the privilege is granted and the licence is issued on payment of valuable consideration, that right can be suspended or taken away only in accordance with law and after observing the principles of natural justice. When it is sought to be withdrawn by way of punishment for contravention of the conditions of licence, it is no answer to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icles offered for sale (See. White vs. Redfern (1879) 5 Q.B.D. 15). Food suspected of being unfit for human consumption may be seized by a council officer, but condemnation is a matter for Magistrate only. (R.V. Cornwall OS. Ex. P. Kerley-1956-I W.L.R. 906). That urgency may warrant disregard of the audi alteram partem rule in other situations in generally conceded. De Verteuil vs. Knaggs (1918) A.C. 557 , But this contention of the learned counsel based on the above authorities ignores the fact that the Excise Rules specifically provide for confiscation of toddy and arrack which the Excise authorities suspect as adulterated. Rule 36 of the general Rules empowers the Officers of the Excise and Police Department to inspect and also to seize or prohibit sale of arrack or toddy unfit for human consumption or adulterated or diluted in any manner. The danger and hazard pointed out by the learned Government Pleader as necessitating the investing of an implied power in the Excise authorities to suspend even pending enquiry, is amply taken care of by making the above provision. Such adulterated stock of arrack or toddy could always be seized and the danger averted. For that pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public interest suspend an employee pending enquiry into grave charges, the authority which has issued a licence can always suspend the licence pending enquiry into allegation of contravention of conditions of licence when the Act and the Rules and the licence provides for cancellation or suspension. We are afraid that this analogy is not apt. That apart even in cases of disciplinary proceedings against public servants, the Supreme Court in R.P. Kapur vs. Union of India AIR 1964 SC P. 787, held as follows: Disciplinary matters may reasonably include suspension pending enquiry. On general principles the Government like any other employer would have a right to suspend a public servant in one of two ways. It may suspend any public servant pending departmental enquiry or pending criminal proceedings. This may be called interim suspension. Or the Government may proceed to hold a departmental enquiry and after his being found guilty order suspension as a punishment if the rules so permit. This will be suspension as a penalty. These general principles will apply to all public servants, but they will be subject to the provisions of Article 314. The authority entitled to appoint a publi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... So also a licence granted for consideration under the provisions of the Act, cannot be tinkered with pending enquiry. 21. In support of the contention that it is an incidental ancillary power, reliance is placed upon the judgment of a learned single Judge of this Court of Chinnappa Reddy, J., as he then was in W.P. No. 3235/1968 and batch. Dealing with the suspension of a licence (granted under the Andhra Pradesh Foods rains Dealers' Licensing Order, 1964) pending-enquiry into some irregularities noticed on a surprise inspection of the shop and the godown of the licensee, held: The licensing authority is, therefore authorised to grant or refuse a licence, impose terms and conditions on the licensee and punish the licensee by way of cancellation or suspension of licence, of course, after due enquiry. In my opinion implicit in the power to grant or refuse a licence, the power to impose conditions and the power to punish for breach of the conditions is the power to suspend a licence pending enquiry. Having regard to the various powers conferred on the licensing authority the power to suspend a licence pending further enquiry must be considered as incidental to the power t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, be separately conferred. 23. Another Division Bench in Raja Narsimloo and another vs. The Commissioner of Excise 1978, A.P.H.C. Notes, 9 : W.A. No. 587/77 and batch, judgment dt. 7th Dec. 1977 applied this principle to the case of a licence granted under the Andhra Pradesh Excise Act and upheld the suspension of a licence pending enquiry into allegations that the licensee had adulterated the toddy with chloral hydrate. Sambasiva Rao. J. (as he then was) speaking for the Bench expressly referring to the above judgment of the Division Bench and the Judgment of another learned single Judge in W.P. No. 3224/1974 dated 26-11-1974 held that the appropriate Excise Officer has the power to suspend the licence as an interim measure. The Bench observed: It cannot be said that the licensing authority which had the power to issue licences and to revoke, cancel or suspend, does not have the incidental power to suspend the licence or permit as an interim measure pending further action when some contravention of the law of the licence has been detected. The Bench further held: The authority concerned is empowered under R. 36 to profit the toddy from being sold when it fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve not been taken note of in any of the above decisions. Thus the only Division Bench judgment in Raja Narasimhloo and Others vs. The Commissioner of Excise (W.A. No. 587/77 and batch; judgment dt. 7-12-77 (Supra) which specifically dealt with the question of suspending an Excise licence did not take note of the peculiar nature of the licence granted under the Excise Act and the absence of any provisions to restore the status quo ante in the event of the allegations not being proved. Our learned brother Choudary, J. in his order dt. 29-9-1981 referring W.P. No. 5971/80, if we may say so, rightly pointed out that the right to prohibit sale of arrack or toddy is not the same as the right to suspend a licence . A licence which has been suspended under S. 31 of the Andhra Pradesh Excise Act, 1968 can be used after a specified period of time. Under such an order of suspension for a specified period the licensee would atleast know that he would be able to use his licence after a specified time. But the so called interim suspension for an indefinite time does not have even that virtue in it, because it would be in operation till the enquiry is completed . We may add that there being no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. Kodandaramayya, J. on behalf of himself and on behalf of Lakshmana Rao, J.) 27. My Lord the Chief Justice in his judgment has referred all the facts fully leading upto this reference and hence we need not re-state them. 28. The short question that falls for consideration by the members of this Full Bench is whether the licencing authority under the Andhra Pradesh Excise Act 17 of 1968 hereinafter called the Act has got power to suspend a licence or permit pending enquiry without giving an opportunity to he holder thereof. In view of the specific provision in section 31(1) Proviso which states, that no licence or permit shall be cancelled or suspended unless the holder thereof is given an opportunity of making his representation against the action proposed. In other words whether the said proviso operates as a prohibition against the powers of the licencing authority to pass such orders as an incidental or ancillary power of granting such licence or permit or of passing final orders of suspension or cancellation. The view of the Division Bench, in Writ Appeal No. 588/77 dated 7-12-77 answering the question in the affirmative is challenged and that was why the reference was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fusal to give a certificate of consent by the Gaming Board without necessity of assigning any reasons for the decision. In our country when an administrative action of a licensing authority is challenged the right to carry on any occupation, trade or business guaranteed under Art 19(1)(g) of the Constitution of India provides an additional dimension to judicial Review. But in the case of intoxicants the Government has got full control and the State has got power to part with those rights for a consideration as privileges, and Art 19(1)(g) has no application (Vide Har Shankar vs. Dy. E T. Commissioner A.I.R. 1975 SC. 1121. The judicial review of the administrative action if the violation is not a right but a privilege will be undoubtedly of a different degree and content. Hence under the impugned proceedings the petitioners have to establish the violation of statutory provisions in respect of their privilege conferred upon the State under the licences granted to them. 31. The next question to be examined is whether the rule of audi alteram partem is excluded in the case of an order suspending a licence as a temporary measure but not as a penalty. This distinction was brought ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust in reaching such a decision in the absence of the other party. No doubt the observation relates to the initiation of the proceedings but not passing adverse orders. In Paarlberg vs. Varty (Inspector of Taxes) 1971 (1) WLR. 728 the same question was answered by Lord Denning in the following words: ''I would go so far with him as to say that, in reaching a prima facie decision, there is a duty on any tribunal to act fairly: but fairness depends on the task in hand. Take an' application to a court which by statute, or by the rules, or, as a matter of practice, is made ex parte. The Court itself is the custodian of fairness. If the matter is so urgent that an order should be made forthwith, before hearing the other side, as in the case of an interim injunction or a stay of execution, the court will make the order straight away. We do it every day. We are always ready, of course, to hear the other side if they apply to discharge the order. But still the order is made ex parte without hearing them. It is a prima facie decision. The above judgment was affirmed by House of Lords in 1972 (1) Weekly Law Reports 534 and Lord Hailsham of St. Marylebone, L.C. described the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not. It is not as if, that such power can always be exercised invariably. If orders are passed which constitute abuse of power or excess and unreasonable, this Court can always interdict the proceedings. We have seen that the rule of audi alteram partem is excluded when the impugned order is not a measure of punishment but a tentative decision pending final order. 34. Now we must examine the statute to see whether such power is excluded by virtue of the proviso in question. 35. The above question depends upon the rule of construction viz., Whether sec. 31(1) proviso excludes the incidental and ancillary power of the licencing authorities to pass such orders. 36. It is now settled that the power to pass an order of stay pending an appeal is an incidental or an ancillary power as held by the Supreme Court in I.T. Officer vs. Mohd. Kunhi A.I.R. 1969 S.C. 430. A question arose whether the appellate. Tribunal has got power to grant stay even though the In-come-tax Act 1961 is silent on that question. Their Lordships ruled An express grant of statutory power carried with it by necessary implication the authority to use all reasonable means to make such grant effective. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lected to an office was sought to be removed. They also held that initially the Government did not appoint him and there is no jural relationship of master and servant and hence the Government has no power to remove him though they have got a power to punish him as a penalty for the breach of any statutory powers. As ruled in the very same case, the test is the court must be satisfied that the existence of the power is absolutely essential for the discharge of the powers conferred. The trade in liquor is only a privilege conferred upon the citizen. There may be an urgent need to prevent any further safe or trade in the goods of the holder of a licence to prevent public injury or deaths if the liquor is proved or even suspected to be poisonous. 37. It is argued that Rules 34 and 36 of Andhra Pradesh (Arrack Toddy Licence General Conditions) Rules 1969 which provide for inspection and seizure of arrack would be a sufficient measure and suspension of a licence is wholly unnecessary. Though we respectfully disagree with the view expressed by the. Division Bench in writ Appeal No. 588/77 dated 7-12-77 on the construction of the above rules 34 and 36 we are clearly of the opinion th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct rule of interpretation of incidental and ancillary powers. 39. This doctrine is welknown in Constitutional Law while construing legislative powers. But this doctrine is also applied in the execution of statutory powers. In Small vs. Smith 10 Appeal Cases 119 it was observed that when you have got a main purpose expressed, and ample authority given to effectuate that main purpose, things which are incidental to it, and which may reasonably and properly be done and against which no express prohibition is found, may and ought, prima facie, to follow from the authority for effectuating the main purpose by proper and general means. No doubt this ancillary power cannot be excised if a specific provision governs the subject or it is inconsistent with the other powers granted to the authorities. In determining whether the power framed by the statutory authority can be held to be incidental to powers expressly conferred by a statute the court must see not only that such power may be derived by reasonable implication from the provisions of the Act but also whether such power is necessary for carrying out the purpose of the Act. In Baroness Wenlock vs. River Dee Company 10 Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial upon it. The temporary suspension order passed by the second respondent pending enquiry, we have no doubt, is reasonable in the circumstances of the case and it is incidental or consequential to the power of the licensing authority to refuse or grant licences imposing conditions and to cancel or suspend the same in case of contravention of any of the conditions of the licence. Again in K. Venkataratnam vs. District Revenue Officer AIR 1975 A.P. 359 a similar though not identical question was raised under the Essential Commodities Act of sale of essential commodities seized pending section 6-A enquiry. It was ruled that: The sale of essential commodity, as an interim measure, does not in any way affect the rights of the dealer in the property for the sale proceeds are there in the event of his being found not guilty . In two unreported judgments Chinnappa Reddy, J., as a Judge of this Court held that the power to suspend a licence is implicit in the power to grant or refuse a licence. 41. Recently the Supreme Court while sustaining the Constitutional validity of a provision in Punjab Foodgrains Dealers Licensing and Price Control Order, 1978 providing suspension p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reasons for the suspension or revocation and shall be communicated to the licensee. 4. When a licence is canceled or suspended under this rule, the holder of the licence shall not be entitled to claim from the Government any compensetion or refund of licence fee for such cancellation or suspension. It is clear that the rule provides suspension pending an investigation and a proviso enjoins the authorities to give opportunities. The question is would this rule lend support to the petitioner. To our mind it is not. If the proviso to sec. 31(1) is sufficient and the authorities are bound to issue the notice even for suspension pending enquiry the sub-rule 2 with its proviso is unnecessary as the law presumes such power pending enquiry. The rule specially provided an opportunity even for suspension pending enquiry. It shall be noticed that under Rule 18 there is no suspension as a substantive punishment but provides only for cancellation and a suspension pending enquiry. Further it is not permissible rule of construction to construe the power under the statute with reference to the rule made by the Executive even though the rules have statutory powers. Hence we are clearly of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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