KRISHAN KUMAR GARG Vs. CHANDIGARH ADMINISTRATION AND OTHERS

JUDGEMENT

(1.) The petitioner challenges the validity of Clause (xiv) Rule 27(4)(A) of the Punjab Liquor Licence Rules, 1956 (hereinafter referred to as the 'Rules') amended vide notification dated 16.07.2013 (Annexure P-4) and also prays for issuance of a writ of mandamus directing the respondents not to enforce the impugned clause with respect to auctions of pending liquor vends, for the excise year 2013-14.

(2.) The facts of the case as discernible from the pleadings and arguments advanced by counsel for the parties are that the Chandigarh Administration announced an excise policy for the year 2013-14 commencing from 1st May, 2013 tupo 30th April, 2014, for allotment of liquor vends, based upon the Rules as amended by the Chandigarh Administration from time to time. The policy and the Rules provide for the mode and manner of auction of retail liquor licences, as per reserve prices and procedure set out in Rule 27 (4) (A) of the Rules. A relevant extract of the Rules reads as follows: -

(3.) The process for auction of vends, based upon earnest money, set out in clause (xiv) of Rule 27(4)(A) of the Rules commenced but a large number of bids, though accepted, were surrendered and earnest money forfeited. These vends were auctioned repeatedly and though bids were offered and accepted, successful bidders surrendered the licence and allowed forfeiture of earnest money. The Chandigarh Administration, as averred in the reply, discerned a perceptible pattern in the conduct of bidders and formed an opinion that a cartel of liquor contractors is operating to ensure that these liquor vends are not successfully auctioned so as to ensure enhanced sales for operational liquor vend. The Chandigarh Administration also discerned that members of the cartel have pooled resources, offered bids but by withdrawing the bids allowed forfeiture of pooled earnest money. The Administration, therefore, amended clause (xiv) of the Rule 27(4)(A), in the following terms, for unauctioned vends: -