XAVIER'S RESIDENCY Vs. STATE OF KERALA

JUDGEMENT

(1.) The first petitioner is a partnership firm, which has established a three star hotel located within the limits of the Kollam Corporation. The second petitioner is stated to be an employee of the hotel. The hotel has been issued a FL-3 licence, which has been renewed from time to time and is valid upto 31/3/13. In this writ petition, petitioners challenge the validity of Rule 28 of the Foreign Liquor Rules, which was substituted by notification dated 18th of April 2012. This rule read as under;

(2.) According to the petitioners, this rule is, to the extent it discriminates hotels in Corporation limits, is invalid, for it violates Article 14 of the Constitution of India. Secondly, petitioners also argued that the Rule is contrary to Section 3(2)(c) of the Kerala Shops and Commercial Establishments Act 1960. It is broadly on these two grounds, the petitioners seek to invalidate the rule as substituted.

(3.) By Rule 28(1) of the Foreign Liquor Rules as substituted, functioning of the FL-3 licenced bars have been restricted by the Government. Accordingly in Municipal and Panchayat areas, bars are allowed to be opened during 8 am to 11 p.m. and in the Corporation limits between 9 am to 12 pm. This according to the respondents is part of the abkari policy of the Government and is intended to reduce the consumption of liquor by imposing certain restrictions. It is stated that to check the menace of alcoholism, it is essential to restrict the easy availability of liquor and to achieve that object, various measures are to be adopted. It is stated that, it was with that object in mind, abkari policy was implemented in a phased manner and that while framing the policy, the Government took various steps including (1) that fresh FL-3 licence shall be issued only to hotels having 4 star and above classification (2) no FL-3 licence shall be granted to hotels which are located within a radius of 3 kms in Grama Panchayats and 1 km in Municipal/Corporation limits from another hotel having an FL-3 licence and (3) the working hours of the bar hotels will be reduced by three hours etc. It is stated that to give effect to the abkari policy, various provisions of the Foreign Liquor Rules were amended and as part thereof, Rule 28 was substituted. Government also contends that such substitution of the Rule was well within the rule making power of the Government under Section 29 of the Abkari Act.