STATE OF KARNATAKA Vs. K K MOHANDAS

JUDGEMENT

(1.) In all these appeals, the defendants, the State of Karnataka and the Deputy Commissioner (Excise) are the appellants. The four appeals arise from four suits being O.S. Nos. 1261, 1262, 1263 and 1264 of 1990 on the file of the Court of the First Additional Munsif, Mangalore. The suits were decreed in favour of the plaintiffs who were Excise Contractors and bidders of the right to vend arrack in various taluks of Dakshina Kannada District of the State of Karnataka for the Excise Year 1990-91 covering the period 1.7.1990 to 30.6.1991. Aggrieved by the decrees, the appellants filed four appeals in the Court of the Additional Civil Judge, Senior Division, Mangalore. The appeals were dismissed affirming the decrees of the trial Court. Four Second Appeals filed by the appellants in the High Court of Karnataka met with the same fate. These Appeals by Special Leave thus challenge the decrees granted in the four suits.

(2.) The State of Karnataka every year auctions the right to vend liquor in various taluks of the State. Among them is included trade in arrack. The plaintiffs in the suits, Excise Contractors on their own showing, had bid the right to vend liquor from the concerned taluks earlier and even for the Excise Year 1989-90. On 16.3.1990, the Minister of Finance, Government of Karna-taka, during his Budget Speech in the Assembly, made the following statement.

(3.) In view of the agitation, the Government considered the relevant aspects and issued an order dated 29.6.1990. While the ban on sale of toddy to the public was continued, it was decided to arrange for sale of toddy tapped by the toddy tappers of Dakshina Kannada District, through a centralised society to the fenny units and permitting the fenny units of Dakshina Kannada to buy the toddy from tappers of allotted trees at the price to be fixed by the Excise Commissioner till finalising the purchase by a centralised society as envisaged.