JAGADALE AND SONS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) the petitioners before us include, manufacturers, wholesale dealers, retail vendors, importers, consumers etc., Of liquors. They assert that they are affected by the enforcement of certain rules, made under the Provisions of the Karnataka Excise Act, 1965 (referred as 'the act', hereinafter). The rules, under challenge are:- (1) Karnataka excise (distillery and warehouse) amendment rules, 1989; (2) Karnataka excise (brewery) (Amendment) rules, 1989; (3) Karnataka excise (manufacture of wine from grapes) (Amendment) rules, 1989; (4) Karnataka excise (sale of Indian and foreign liquors) (amendment) rules, 1989; and (5) Karnataka excise (bottling of liquor) (Amendment) rules, 1989.

(2.) the main attack is against theProvisions now made for licencing of a sole distributor, which is to be a government owned or controlled company, as may be specified by the state government. The relevant Rule is introduced by-substituting clause (11) to Rule 3 by the Karnataka excise (sales of Indian and foreign liquors) (Amendment) rules, 1989 (for short, referred as 'ifl rules'). The added provision reads as follows:-

(3.) simultaneous amendments to otherrelevant rules were also made. By virtue of these amendments, the licencees under the brewery rules, distillery and warehouse rules, manufacture of wine from grapes rules, are barred from selling liquor, beer or wine, as the case may be, to any person other than one holding a distributor licence or export liquor outside the state. Exception is made for the sale directly to the military. In the case of wine manufacturers, the amended Rule, permits the licencee to sell bulk wine to a person holding a retail wine licence or to a governmental pharmaceutical unit which is engaged in manufacture of tonic utilising bulk wine. A beer manufacturer, is also permitted to sell draught beer to a person holding retail vend of beer licence.