MAHARASHTRA DISTILLERIES Vs. STATE OF KERALA

JUDGEMENT

(1.) Are the conditions laid down by the Kerala State Beverages (Manufacturing and Marketing) Corporation Limited vide its notice dated February 11, 2002, for execution of rate contract by the Suppliers arbitrary and illegal Is the Corporation not entitled to insist upon the earnest money deposit; restrict the brands to the maximum of 8 and levy the fees as mentioned in the impugned notice These are the questions that arise for consideration in these bunch of writ petitions. Learned counsel for the parties have referred to the facts in O.P. No. 6705/2002. These may be briefly noticed.

(2.) The petitioners are licensed under the Abkari Act, 1967 and the Rules to manufacture Indian Made Foreign Liquor within the State of Kerala. On May 11, 1983, the State Government took a policy decision to establish a Public Sector Corporation to procure spirit; arrange blending; bottling; selling and supply of arrack and also for dealing with sale of foreign liquor. It appointed a committee to consider the matter. A proposal was submitted by the committee. It was considered by the Government. Vide order dated February 1, 1984, the proposal for the incorporation of the public Corporation by the name of Kerala State Beverages Limited was approved. The Memorandum and Articles of Association of the Company were also approved. A copy of this order has been produced as Ext. P1. Thereafter, the Corporation has been periodically issuing notices inviting offers for registration for supply of Indian Made Foreign Liquor. It is the admitted position that the Corporation is the monopoly purchaser and distributor of " Foreign Made Foreign Liquor, Indian Made Foreign Liquor (Brandy, Whisky, Rum, Gin, Wine, Vodka etc.) and Beer in the State of Kerala.

(3.) In February, 2002, the Corporation invited sealed offers from manufacturers owning a Distillery / Brewery / Blending Unit for registration and for entering into rate contract for the supply of Foreign made Foreign Liquor, Indian made Foreign Liquor and Beer from April 1, 2002. Certain conditions were laid down. The relevant conditions which are the subject matter of challenge in these petitions are contained in Para.3(a), 3(b), 5(f), 5(i), 18(b) and 22 of the notice. A copy has been produced as Ext. P4. These provide as under: