STATE OF PUNJAB Vs. RAGHUNATH DASS

JUDGEMENT

(1.) THIS Judgment will dispose of three Letters. . Patent appeals Nos. 125, 126 and 127 of 1962, preferred from the judgment of D. K. Mahajan Judge, as all these appeals give rise to similar questions of fact and law.

(2.) THE respondents claim themselves to be the liquor licensees under the Punjab excise Act. On 8th February, 1962, the Deputy Excise and Taxation Commissioner auctioned liquor licences. In all these cases the respondents were the highest bidders. The bids had been approved or on 20th February, 1962, by the Excise and Taxation Com-missioner exercising the powers of Financial Commissioner. The successful bidders had deposited on 15th March, 1982, one-sixth of the licence-fee which was a statutory obligation. On 30th March, 1962, the Government, without disclosing any reasons and without giving notice to the respondents whose bids had been accepted, reauctioned the liquor licences. The new bidders to whom the liquor licences have been sold have not been impleaded in this case. The respondents invoked the jurisdiction of this Court under Article 226 of the constitution by filing writ petitions on 28th March, 1962, praying for the issuance of a writ of mandamus or any other suitable writ, order or direction, to the State of punjab, the Excise and Taxation Commissioner, Punjab, Patiala, and the Deputy excise and Taxation Commissioner, Patiala, prohibiting them or restraining them from reauctioning the wholesale and retail licences of country liquor for Faridkot, kot Kapura, and Bhatinda. They also prayed for an appropriate writ or order commanding the Punjab State and the other two respondents actually to issue the licences to them, as their bids had been accepted and from whom one-sixth of the total fee had been received. In the written statement It was admitted that the licences for the retail vend of country spirit for the year 1962-63 were auctioned by the Deputy Excise and taxation Commissioner and that the highest bids were of the pre sent respondents which were accepted by the. Deputy Excise and Taxation Commissioner, Patiala division, subject to the confirmation by the Excise and Taxation commissioner, punjab. It was also admitted that one-sixth of the amount of the annual fee had been deposited. It was further admitted that the "vends in question were reauctioned on 30th March, 1962, after observing all the formalities which are observed at the time of annual excise auctions required under the rules. " It was also conceded that no notice was given to the petitioners for reauctioning the vends, but due publicity in this connection was given. It was added that the auction results of the vends In question were, after due consideration," cancelled by Government who directed sanction thereof. It was admitted that the bids of the petitioners offered for the vends for the year 1962-63 were accepted as they were the highest and they were confirmed by the Excise and Taxation Commissioner. These licences, it was states were to commence with effect from 1st April, 1962. It was then stated "since these (licences) were not actually Issued to them, the question of their revocation did not arise. "

(3.) IT may be stated here that the circumstances which led the Government to reauction the licences have not been stated and no reasons have been indicated which induced the Government, after the confirmation of the bids by the Excise and Taxation Commissioner and after the acceptance of one-sixth deposits by them, to order reauction.