STATE OF BIHAR Vs. RIGA SUGAR CO. LTD.

JUDGEMENT

(1.) These Appeals arise from a judgment of the High Court of Judicature at Patna in the Writ Petitions filed by the Respondents. The Writ Petitions were allowed by the High Court and the Appellant- State was directed to refund the licence fee and the differential amount recovered from the Respondents for the period during which their premises were unlawfully sealed/closed.

(2.) A tender notice dated 31.01.2014 was issued by the Department of Excise and Prohibition, Government of Bihar, inviting applications for grant of Exclusive Privilege for manufacture and supply of country liquor in PET bottles. The State was divided into 17 zones and the 17 lowest applicants in the financial bid would be eligible for grant of Exclusive Privilege in accordance with their preference to a particular zone. By an order dated 04.03.2014, Exclusive Privilege for manufacturing and supply of country liquor for zone 11 constituting the districts of Muzzafarpur, Sitamarhi and Sheohar for the period between 01.04.2014 to 31.03.2019 was awarded to M/s Riga Sugar Company Limited (hereinafter, 'the Respondent'). The base rate fixed for supply of 200 ML PET bottle of country liquor was fixed at Rs.5.78/-. The difference between the base price and the bid price (in this case Rs.4.07/-) calculated on the Minimum Guaranteed Quantity (MGQ) was payable by the supplier to the Government in advance for a period of every three months i.e. on 15th March, 15th June, 15th September and 15th December. As per the tender conditions the supplier is required to obtain a licence in Form 27 for manufacture and supply of country liquor to Bihar State Beverages Corporation Limited (BSBCL) at the rate of Rs.1/- per litre calculated on the Minimum Guaranteed Quantity.

(3.) The Respondent was required to supply 5,25,220.786 LPL country liquor of 60 degree strength per month. After issuance of a letter of grant on 04.03.2014, a liquor licence was obtained by the Respondent. Pursuant thereto, the Respondent established a bottling plant at Muzzafarpur and commenced production and supply of country liquor to BSBCL on 01.02.2015. As the Respondent was not supplying the prescribed quantity of country liquor to BSBCL, a warning was issued to ensure that the prescribed quantity of country liquor was supplied. On 09.12.2015, a penalty of Rs.1 lakh was levied on the Respondent for non-supply of minimum quantity of country liquor. Pursuant to the inspection report dated 13.12.2015, the premises of the Respondent was sealed by the Superintendent of Excise, Muzzafarpur for non-supply of minimum quantity of country liquor.