TRIGGER GOODS PVT LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) This writ petition was filed for setting aside the Liquor Sourcing Policy (CS/SCS) 2008-09 (in short, the liquor policy), by which the Bihar State Beverage Corporation Limited (hereinafter referred to as the Corporation) has laid down terms and conditions for purchase of country liquor and spiced country liquor from manufacturers of country/spiced country liquor. According to the petitioner, the liquor policy is against the provisions of the Bihar Excise Act, 1915 (in short, the Act) and the rules made thereunder. It is also contrary to, the terms and conditions of the licence issued by the State Government. It is further contended that the Corporation has no authority or jurisdiction to prescribe such terms and conditions which are against the statutory rules and that the above conditions are onerous, unilateral and arbitrary and thus amount to abrogation of the terms and conditions of the licence. It is also submitted that the Corporation having monopoly to deal with wholesale purchase and supply, it has no authority to impose such conditions taking undue advantage of that position and, therefore, the conditions are unilateral and arbitrary and it alters and the terms and conditions under which the parties are required to deal with liquor. Further, it is contended that it is violative of Articles 14 and 19 of the Constitution of India. Even though one of the prayers in the writ petition was for restraining the Corporation from coercing the petitioner to execute an agreement as stipulated in the Policy, after the filing of the petition, the petitioner, out of compulsion and necessity, signed the agreement under protest.

(2.) The petitioner is a company registered under the Companies Act, 1956 . It is engaged in the manufacture and supply of country liquor. There is no dispute with regard to the fact that only the State Government has got exclusive privilege to deal with manufacture and sale of country liquor in the State. Section 22 of the Act, as amended, provides that the State Government may grant to any person, on such conditions and for such period as it may think fit, the exclusive privilege of manufacturing or supplying of liquor. Section 22 of the Act reads as follows:

(3.) Now we will see the conditions of licence issued to the petitioner. Clause 4 of the licence reads as follows: