H IBRAHIM Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Petitioners are the dealers in Indian made foreign liquor engaged in the business of either retail vending or running a Bar and Restaurant having licences in Form CL-2 or CL-9 as prescribed under the Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968 (hereinafter in short, 'the Rules'). Their licensed premises are located in Shimoga and Bhadravathi. Admittedly, till upto 17th July, 1992, Shimoga and Bhadravathi were City and Town Municipal Council areas respectively. By Notification No. HUD/101l/MNE/92, dated 17th July, 1992 (Annexure-C) issued under Section 3(1) of the Karnataka Municipal Corporations Act, 1976 (in short, 'the Corporation Act'), the State Government declared the said areas to be a city and established a Corporation for the same, by the name 'Corporation of the City of Shimoga and Bhadravathi'. Subsequently, the Governor pursuant to the powers conferred on him under Section 3 read with Section 9 of the Karnataka Municipalities Act, 1964 (in short, 'the Municipalities Act') has by notifications dated 5-10-1995 in Notification Nos. HUD/36l/MLR/95 and HUD/361/95 specified Bhadravathi and Shimoga townships as separate 'Smaller Urban Areas' by further specifying such areas to be as 'Bhadravathi Town Municipal Area' and 'Shimoga City Municipal Area'.

(2.) Petitioners have approached this Court for declaring the notification dated 17-7-1992 (Annexure-E) declaring their areas to be 'Corporation', as illegal and unenforceable. The consequential prayer is that the respondent-Excise Authorities should be restrained from collecting licence fee from them treating the area to be a Corporation during the period Annexure-C was in force.

(3.) Sri G.K. Bhat, learned Counsel appearing for the petitioners has challenged the legality of the notification Annexure-C on the grounds that (i) before issuance of the said notification no objections were invited from the residents of the area, and, (ii) one Corporation could not .have been established both for Shimoga and Bhadravathi Municipal areas.