COMMISSIONER OF EXCISE Vs. K K GOPIDAS

JUDGEMENT

(1.) Right to sell liquor is not a fundamental right. State has got the exclusive privilege in the trade of liquor. No citizen can claim to have any right or privilege in the trade of noxious or dangerous goods. State while parting with the privilege can lay down whatever conditions which in their wisdom thought fit and persons deal with the vending of intoxicating liquor would be bound by the terms and conditions laid down by the State. Provisions of the Abkari Act and Rules framed thereunder have to be strictly interpreted and in case of any doubt in favour of the State since trade in the noxious or dangerous goods is injurious to health and the society. Liberal interpretation of the various provisions would at times be detrimental to public interest. Art.47 of the Constitution expressly speaks of the endeavour to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health. Trade and business in intoxicating liquor can therefore be restricted severely, curtailed or even prohibited, at times conditions laid down for parting with the privilege will put the licensees out of business but that is what the State is striving for to achieve the goal under Art.47 of the Constitution.

(2.) S.18A of the Abkari Act states that it shall be lawful for the Government to grant to any person or persons, on such conditions and for such period as they may deem fit, the exclusive or other privilege of manufacturing or supplying by wholesale, or of selling by retail or of manufacturing or supplying by wholesale and selling by retail, any liquor or intoxicating drugs within any local area on his or their payment to the Government an amount as rental in consideration of the grant of such privilege. No grantee of any privilege under sub-s.(1) shall exercise the same until he has received a licence in that behalf from the Commissioner. S.24 of the Act states that every licence or permit granted under the Act shall be granted subject to such restrictions and on such conditions. S.26 of the Act authorises the Commissioner to cancel or suspend any licence or permit granted under the Act in the event of any breach by the holder of such license or permit or by his servant, or by anyone acting with his express or implied permission on his behalf, of any of the terms and conditions of such licence or permit or if the conditions of the licence or permit provide for such cancellation or suspension.

(3.) State in exercise of the powers conferred under S.18A and 29 of the Abkari Act framed the Kerala Abkari Shops Disposal Rules, 2001. R.3(1) states that the privilege of vending toddy or foreign liquor for any period in all or any of the independent shops as may be decided by the Government from time to time, within the range or taluk as may be notified in the gazette shall be put to public sale, shop by shop by the District Collector or by the Deputy Commissioner of Excise or by any other officer authorised by the Government in that behalf to individuals on at such date or dates and at such place or places as may be fixed from time to time, for a fixed annual rental as licence fee as may be decided by Government. Proviso to R.3 states that it shall be lawful for the Government to extend by notification in the official gazette the period of privilege sold under sub-r.(1) for any further period, subject to such conditions as the Government may impose. R.5 stipulates that the grant of privilege of vending toddy shops shall be subject to the conditions laid down therein. R.5(19) empowers the Commissioner of Excise to cancel any licence issued under the Rules at any time on valid grounds. R.7(23) states that the licensee shall not sell or otherwise transfer the privilege granted or licence issued to him. No licensee shall lease out or sublet the whole or any portion of the privilege or licence granted to him.