SANJEEV BHANDARI Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE challenge in the present writ petition is to the auction of liquor vends of Jalandhar-I, Jalandhar-II, Nawanshahr and Hoshiarpur Excise District held on 5.11.2004 and to absolve the petitioner from the recovery of so-called shortfall arising out of the said auction as the auction is alleged to have been conducted in violation of Punjab Liquor Licence Rules, 1956 (for short the Licence Rules, 1956) and contrary to the directions given by this Court in the earlier writ petitions filed by the petitioner on 31.3.2004 and 3.11.2004. The petitioner has also claimed refund of Rs. 6.07 crores deposited by him in compliance with the orders passed by this Court.

(2.) BEFORE adverting to the respective contentions of the parties, certain undisputed facts are that earlier the State Government auctioned liquor vends of excise districts Jalandhar-I, Jalandhar-II, Nawanshahr and Hoshiarpur, on 4.3.2004. The said auction became the subject-matter of challenge before this Court in CWP No. 3628 of 2004 at the instance of the petitioner. The excise districts Jalandhar-I and Nawanshahr were clubbed at a predetermined price with Jalandhar-II. It was Jalandhar-II which was put to auction. This Court found that under Sub-rule (5) of Rule 36 of Licence Rules, 1956, the Presiding Officer with the prior approval of the excise Commissioner can auction liquor vends after forming groups situated either in the same village, town or area located in a circle or in a group of circles subject to ceiling of Rs. 15 crores. The Excise Commissioner can seek extension of the limit of Rs. 15 crores with the approval of the Government. Still further, while interpreting sub-rule (5-A) of Rule 36 of the Licence Rules, 1956, it was found that a vend or a group of vends was required to be auctioned first. In exceptional circumstances, the vend or a group of vends can be attached at a predetermined licence fee. Such mode of grant of licence at a predetermined licence fee is a last resort and therefore, it was found that auction of Jalandhar-II with predetermined licence fee in respect of Jalandhar-I and Nawanshahr is against the Licence Rules, 1956 and auction announcements and auction notice. However, the auction in respect of excise district of Hoshiarpur was found vitiated on facts.

(3.) THE State Government published auction notice on 28.10.2004 to conduct auction on 5.11.2004. The petitioner herein challenged condition Nos. 5 and 7 of the auction notice in CWP No. 17069 of 2004. This Court passed an order on 3.11.2004 holding that the revenue loss due to re-auction of the liquor vends, can be made good from the petitioner in respect of re-auction in Nawanshahr and Hoshiarpur districts only and that the amount deposited by the petitioner shall be adjusted towards the security required to be deposited at the time of fall of hammer. The said order passed by this Court is subject-matter of SLP (C) No. 2381 of 2004 before the Hon'ble Supreme Court.