K NARAYANA Vs. SUPERINTENDENT OF EXCISE MAHABUBNAGAR

JUDGEMENT

(1.) This writ petition is filed for an appropriate writ or order in the nature of mandamus restraining the respondents from proceeding to cancel or suspend the licences of the petitioner in respect of a group of Excise Shops situate in various places for non-payment of rental for the month of March, 1979 and Nagarkurnool shop for non-payment of rentals for February and March, 1979.

(2.) The petitioner alleges that no order has been passed by the respondents cancelling the licence of the petitioner in respect of any of his Excise Shops for non-payment of rental for the month of March, 1979. He approached the Court with an apprehension that it may be suspended or cancelled for non-payment of rental in due time. Hence, the question of restraining the respondents not to cancel or suspend the licence for default in payment of rents for March 1979 does not arise. In this writ petition, we are concerned only with the Nagarkurnool shop of the petitioner in respect of which action was taken by the Excise Authorities for nonpayment of rental for the month of February, 1979. So far as March is concerned, there is no material to show whether the rent has betn paid or whether any action has been taken by the authorities for non-payment. It is open to the authorities to take such action, as it is open to them under Jaw, in case the petitioner has not paid the rental for March, 1979.

(3.) The crucial question that falls for consideration is whether the action taken by the authorities in respect of the licence held by the petitioner regarding Nagarkurnol Shop for non-payment of rental for February, 1979 by the due date, and the reauction of the shop on 6th April, 1979, is valid or rot. The relevant facts are as follows: The petitioner is an Excise Contractor and holds licences for various group of shops at various places in Mahaboobnagar District. For the year 1978-1979, he was the highest bidder at the auction and licence was granted to him to run a group of shops in Nagarkurnool to sell arrack. The licence period started from 1st October, 1978, and ends with 30th September, 1979. Rule 28 of the Andhra Pradesh Excise (Arrack and Toddy Licences General Conditions) Rules, 1969, lays that rentals shall be remitted by the licencee by the 20th of every month and where that day happens to be a holiday, on the next working day. It also mentions that if the rental is not paid by the due date, the licence is liable for suspension or cancellation, after giving an opportunity to the holder thereof making his representation before the end of that month against the action proposed. Apart from the rentals that he has to pay for the other shops situate at various places, the petitioner has to pay a sum of Rs 45,000 for the group of shops situated in Nagarkurnool per month. Immediately after the auction in his favour he complied with all the conditions that are necessary for granting the licence in his favour by depositing one month's rental aud earnest money and another one month's rent, as required under Rule 19 of the Right to Sell Liquor in Retail Rule The petitioner paid the rentals for the months of October, November, December, 1978, and January, 1979, in respect of the Slop in Nagarkurnool at the rate of Rs. 45,000 per month. So far as February, 1979, is concerned, he failed to pay the rental within the due date. He filed Writ Petition No. 1867 of 1979 in this Court requesting the Court for grant of some time to pay the rent for the month of February, 1979 and this Court granted time upto 15th March, to pay the rental for the month of February, 1979. The petitioner paid only a sum of Rs. 7,000 within the time given by the High Court leaving a balance of Rs. 38,000.