RAM NATH Vs. UNION TERRITORY OF CHANDIGARH

JUDGEMENT

(1.) THE validity and legality of the auction of the country liquor vends situate in Sectors 19, 22, 28 and 35, and of the Indian made foreign liquor and beer vend of Sector 22, Chandigarh, by respondents 2 and 3 (Excise and Taxation Commissioner, Union Territory, Chandigarh, and the Collector-cum-Deputy Excise and Taxation Commissioner, Union Territory, Chandigarh) in favour of one or the other out of respondents 4 to 7 for the financial year 1974-75, have been challenged by Ram Nath and Kewal Krishan in this petition under Article 226 of the Constitution mainly on two grounds, namely :- (i) that Rule 36 (17) of the Punjab Liquor Licence Rules, 1956, as amended with effect from April 1, 1967 (hereinafter called the Liquor Rules) is ultra vires Article 14 of the Constitution as it confers arbitrary, un-guided and uncanalised powers on the Presiding Officer of the auction in the matter of holding whether the bidding is excessively high or not at any particular stage in any particular auction, so as to justify the imposition of the condition of immediate cash deposit of the bid amount which may extend to the whole of the amount of the annual fee, and that the said power vested by the impugned rule in the Presiding Officer is oppressive and amounts to an unreasonable restriction on the right of the petitioners under Article 19 (1) (g) of the Constitution; and (ii) that even if the said rule is not held to be unconstitutional, the impugned auctions of the liquor vends are illegal, because the condition of immediate advance deposit imposed by the respondents in the case of the impugned auctions was not in conformity with and within the circumscribed limits of that rule. The circumstances in which these questions have arisen in the present case are not at all complicated and may first be noticed.

(2.) THE Punjab Excise Act, 1914 (hereinafter called the Act) applies to the Union Territory of Chandigarh. The vends in question had to be auctioned for the year 1974-75, in accordance with the liquor rules. The petitioners were the sitting licensees of the country liquor vends at Manimajra and in Sector 22. In the Public notice for the auction of the country liquor, foreign liquor and beer vends for 1974-75 (Annexure P-l), issued by respondent No. 3, it was stated that the auctions would be held on Sunday, the 3rd March, 1974, at 10. 30 A. M. at the Estate Office, Sector 17, Chandigarh, and that every bidder would have to deposit Rs. 25/-, which would be deducted from the amount of the advance of the successful bidders and would be refunded to the others. It was further stated in the notice that the successful bidder would have to deposit the amount of the advance licence-fee within seven days, and though the details of the conditions of auction were to be announced at the time of the auction, the bidders were required to bring from the tahsildars of their respective areas or from other competent officers certificates of solvency. Annexure P-2 to the writ petition is a copy of the relevant clauses of the auction conditions which were admittedly announced by the Excise Authorities at the time of the auction. The only conditions of the auction which are relevant for our purposes are those contained in paragraphs 3, 4 (i), 12 (i) and (ii) and 30 of Annexure P. 2. Those are reproduced below for ready reference:-"

(3.) NO person will be allowed to bid for any licence, unless he has deposited a sum of Rs. 25. 00 into the Government Treasury or deposits that at the time of auction with the Presiding Officer. Such a person may, however, bid for more than one licence.