STATE OF KERALA Vs. KANDATH DISTILLERIES

JUDGEMENT

(1.) Leave granted.

(2.) We are, in this appeal, concerned with the question whether the High Court can issue a Writ of Mandamus under Article 226 of the Constitution of India, directing the State to part with its exclusive privilege, in the matter of granting licence for establishing distilleries under the Foreign Liquor (Compounding, Blending and Bottling) Rules, 1975 (for short "1975 Rules") read with Section 14 of the Abkari Act (for short "the Act").

(3.) M/s Kandath Distilleries, respondent herein, claimed to have submitted an application dated 12.1.1987 before the Commissioner of Excise for a licence to establish a compounding, blending and bottling unit in the Palakkad District. Few others had also filed similar applications for licence for setting up distillery units in the State of Kerala. All of them were directed to first obtain the approval of the Government of India for the setting up of new blending and bottling units and, thereafter, to approach the State Government. This Court, however, vide its judgment dated 29.1.1997 in Writ Petition No. 322 of 1996 (Bihar Distillery and Another v. Union of India and Others) took the view that the power to permit the establishment of any industry engaged in the manufacture of portable liquors, including Indian Made Foreign Liquors (IMFLs), beer, country liquor and other intoxicating drinks is exclusively vested in the respective State Governments. Further, it was also held that the power to prohibit and/or regulate the manufacture, production, sale, transport of consumption of such intoxicating liquors is equally that of the States.