RAJENDRA SINGH WADHWA Vs. STATE OF M P

JUDGEMENT

(1.) PETITIONER is a liquor contractor. A liquor auction was conducted in the month of March, 2005 which ended in favour of the petitioner on account of having quoted maximum bid. Accordingly, he was granted four licences for country liquor shops and one licence for foreign liquor shop for the year 2006-07. As per paragraph-5. 3 of the writ petition, W. P. No. 7670/06 containing challenge to the legality and validity of Clause 8 (2) of the Liquor Policy of the year 2006-07 is still pending. Petitioner deposited the basic licence fee and the annual licence fee for the complete year of 2006-07. His grievance is that despite the realization of money in the aforesaid manner, supply of country liquor as well as foreign liquor was not made by the respondents to the petitioner to enable the latter to sell it in exercise of his right under the licence. Since, the contractual period of 2006-07 is over, the petitioner has claimed refund of his unutilized money deposited as annual licence fee with interest.

(2.) IN the matter of liquor contract three terminologies frequently come across. They are (i) annual auction amount (ii) basic licence fee (iii) annual licence fee. Annual auction amount means the bid received for a group of shops put to auction whereby open auction or tender system for any period is accepted and confirmed by the Collector or the Excise Commissioner as the case may be. The term annual auction amount is also known as annual price. This has been so defined in the general licence conditions. The basic licence fee is worked out at a particular percentage of annual price of the shop. Percentage is decided by the State government for a particular year while deciding the policy for the year. For the relevant period 2006-07, percentage was fixed at 8%, meaning thereby that 8% of the annual price was the basic licence fee. Amount of basic licence fee deducted from the annual price would make out the annual licence fee against which supply of liquor is made. Equationally it may be said :-Annual price/annual auction amount - basic licence fee - annual licence fee thus, a licencee of liquor (i. e. auction purchaser) is liable to pay annual price of a shop for which licence is granted to him in terms of basic licence fee as well as annual licence fee. No adjustment or supply is liable to be made against the basic licence fee whereas supply of liquor is liable to be made against the annual licence fee if the same is deposited in due manner within the prescribed period. Basic licence fee and annual licence fee are explained in clause 2. 3. 6 of the Liquor Policy of the year 2006-07 contained in Annexure/r-1.

(3.) ADMITTEDLY, the petitioner being the highest bidder in the liquor auction, was granted licence for four country liquor shops and one foreign liquor shop. Vide licence cumulatively marked as Annexure/p-4,he was required to make deposit in each quarter in the proportion mentioned in the licence. Clause-8 of the Liquor policy (Annexure/r-1) provides for procedure of deposit of licence fee. Accordingly, the annual licence fee was liable to be realized in 24 fortnightly instalments. Under clause-8. 4 of the Liquor Policy, if the licencee fails to deposit the instalment of licence fee or part thereof in the relevant fortnight and deposits the same in the next fortnight, he would not be entitled to issue of liquor to him against the delayed deposit of licence fee. If the licencee fails to deposit the balance licence fee even in the succeeding fortnight, the licence granted to him was liable to be revoked after expiry of such succeeding fortnight. Further, the excise Department was empowered to make an alternate arrangement for running such liquor shop.