M S JAYARAJ Vs. COMMISSIONER OF EXCISE KERALA

JUDGEMENT

(1.) Leave granted.

(2.) A bidder in auction for the privilege of vending foreign liquor within a circumscribed range was permitted by the Excise Commissioner to have his domain shifted to another range. On hearing the said news a hotelier who is doing business in the latter range was distressed and she quickly approached the High Court for thwarting the said move. At the first round the hotelier failed to checkmate the bidder as a single Judge of the High Court declined to grant the relief prayed for by her. However, she succeeded on the second round, when a Division Bench of the High Court, on the appeal filed by her, quashed the order of the Excise Commissioner. This appeal by Special Leave is by the aforesaid bidder for restoration of the benefit which he secured from the Excise Commissioner.

(3.) In the State of Kerala, the right to sell foreign liquor is restricted by statutory provisions. The Government of Kerala has formulated rules for it under the Kerala Abkari Shops (Disposal in Auction) Rules, 1974 (for convenience it would be referred to as the "Auction Rules"). The Government has the authority, under the said rules to notify in the Gazette the limits of each area (range) wherein the shop or shops could be located for vending such foreign liquor. Officers are authorised by the Government to auction the right to vend foreign liquor from each such shop and for such period as may be fixed. Person who offers the highest bid would normally be preferred for conferring the privilege to vend foreign liquor and licence would be issued to him for that purpose. Among the different types of licence only two are relevant for the purpose of this case. One is called "Licence for the privilege of possession of Indian made Foreign Liquor for sale to public in sealed bottles without the privilege of consumption on the premises". As the said licence is to be issued in Form FL-1 it can be termed as such hereinafter. The other is called "Hotel (Restaurant) Licence" and it is to be issued in Form FL-3. (It can be referred to as such hereinafter).