NEW SWADESHI DISTILERY Vs. STATE OF BIHAR

JUDGEMENT

(1.) In all the four writ petitions, common Ordinance/Act is under challenge. Further common prayer has been made for direction on the Respondents to act in accordance with the decision of this Court in the case of New Swadeshi Distillery, reported in 1993(2) P.L.J.R. 587. On the other hand, the contempt petitons arise out of the decision of this Court in the aforesaid case, New Swadeshi Distillery (supra), as it has been alleged that the decision in the aforesaid case has not been complied by the Respondents. It is for the said reason, all the case are being disposed of by this common judgment.

(2.) The brief facts of the case, which are relevant for the purpose of adjudication, are as follows : The petitioners are engaged in manufacture/production of commercial spirit/rectified spirit (for short rectified spirit), at their distilleries. Admittedly, the 'rectified spirit' produced by the petitioners are not fit for human consumption, till the same are processed and made Intoxicant like 'country liquor'. Earlier, there was a practice, when certain quantity of 'rectified spirit' manufactured by the petitioners, were used to be supplied to the warehouses, owned or controlled by the State Government. The petitioners used to transport the 'rectified spirit' to such warehouses, controlled by the Government, as a courtesy, otherwise they were not obliged to supply 'rectified spirit' beyond their factory premises. Such practice the petitioner use to follow in order to maintain congenial atmosphere, there being directions of the excise authorities to supply such 'rectified spirit' to the Warehouses. Admittedly, the petitioners do not own any of the warehouses, nor they were the contractors of such warehouses. For all purposes, the petitioners were 'sellers', whereas the State Government was 'buyer' with respect to such 'rectified spirit'. After such purchase of 'rectified spirit' from the petitioners, the same used to be stored in the warehouses to process the same and thereby to convert 'rectified spirit' as 'country liquor'. The warehouse people thereafter used to sell such 'country liquor' to the different retailers of the State Government.

(3.) According to the petitioners, an understanding was given by the State Government and the authorities to them that they will be paying a sum of Rs. 3.42 P. for one L.P. Ltr. of 'rectified spirit'. They were, in fact, paid such amount of Rs. 3.42 P. per L.P. Ltr. of 'rectified spirit'. It was only by one letter dated 19th February, 1990 Annexure-A to C.W.J.C. 1773/94), the petitioners were intimated that out of the amount of Rs. 3.42 P. per L.P. Ltr. or rectified spirit', State Government had decided, that a sum of Re. 0.70 P. is to be retained by the State Government, as maintenance charge of warehouses. Breakup of such Rs. 3.42 P. was shown, as follows : <FRM>JUDGEMENT_767_BLJ1_1996Html1.htm</FRM> After such decision communicated vide letter dated 19th February, 1990 (Annexure-A to C.W.J.C. No. 1773/94), a letter to that effect was issued to all Collectors, vide common letter dated 26th July, 1990 (Annexure-2 to C.W.J.C. 1773/94), wherein all the Collectors were directed to recover such Re. 0.07 P. per L.P. Ltr. From the cost of 1 L.P. Ltr. of 'rectified spirit', including the cost, which had already been paid to the petitioners. Individual letters to such effect for recovery was also issued by the respondents. It was, in this background, the petitioner, New Swadeshi Mill moved before this Court by filing C.W.J.C. No. 6868 of 1990. The aforesaid decision relating to deduction of Re. 0.70 P. from the cost of 'rectified spirit', was challenged. On 24th January, 1991, an interim order was passed by a Bench of this Court in the said case. It was observed that the respondents shall not insist refund of Re. 0.70 P. per L.P. Ltr., out of the cost which had already been paid in the past. However, with respect to the period of pendency of the writ petition, it was ordered that the respondents will pay only a sum of Rs. 2.72 P. per L.P. Ltr., after deducting the warehouse maintenance cost of Re. 0.70 P. per L.P. Ltr., out of Rs. 3.42 P. per L.P. Ltr. It was made clear that in case the writ petition was allowed, the respondents will have to pay back the full amount to be calculated @ Re. 0.70 P. per L.P. Ltr. of 'country spirit', to the petitioner of the said case, within a period of four months from the date of delivery of judgment. The matter relating to grant of interest, in that event, was left for the Bench which was to hear the case. Similarly, it was observed that in case the writ petition was dismissed, the petitioner was to refund an amount @ Re. 0.70 P. per L.P. Ltr., out of Rs. 3.42 P., which had already been paid in favour of the petitioner of the said case. The said writ-petition was ultimately heard by a Division Bench of this Court and was allowed in favour of the petitioner of the said case. The decision of the State Government to charge a sum of Re. 0.70 P., out of Rs. 3.42 P. per L.P. Ltr., as maintenance cost of warehouse, was set aside by this Court. It was taken into note that there was no such rule laid down by the State. It was further observed that the amount of Rs. 3.42 P. per L.P. Ltr. which had already been paid to the petitioner, the respondents cannot recover any amount out of the same. The respondents were directed to carry out the interim order, as was granted by the Court on 24th January, 1991, in the said case. The decision is reported in 1993 (2) P.L.J.R. 587.