BHANWARLAL Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) This is a petition under Article 226 of the Constitution of India praying for quashing the impugned order (Ex. 7) of respondent No. 2 dated 13th March, 1975, by which it had been ordered that the earnest money which had been deposited by the petitioners be forfeited and also declaring the petitioners to be disqualified for a period of three years from obtaining any licence under the Rajasthan Excise Act and the Rules.

(2.) Licence for the retail sale of country liquor in the State is governed by the Rajasthan Excise Act, 1950, (hereinafter to be referred as 'the Act') and the Rajasthan Excise Rules, 1956 as amended (hereinafter to be called as 'the Rules').

(3.) By notification of 30th March, 1972, the State Government in exercise of its powers under Section 41 of the Act made certain amendments to the Rules. Rule 67-I provides that licence for exclusive privilege of selling by retail country liquor at a shop may be granted amongst others by inviting sealed tenders. Rule 67-KK lays down the procedure for invitation of sealed tenders. Sub-rule (3), amongst others, provides that the tender shall be submitted in the form to be obtained from the office of any District Excise Officers or Excise Commissioner. Sub-rule (5) which provided that tenders shall be for individual shops and not for group of shops was however later on amended on 4th March, 1974, so that it now provides that subject to the written sanction of the Excise Commissioner, licence under this rule may be granted in respect of group of shops. Sub-rule (9) of Rule 67-KK provides that acceptance of tender shall be communicated to the successful tenderer in the form laid down by the Excise Commissioner and the tenderer shall be required to furnish due security in cash within the time indicated in this communication. Sub-rule (10) lays down that if the required security is not furnished within the time indicated acceptance of the tender may be revoked by the Excise Commissioner and the earnest money deposited by the tenderer with the tender shall in the event of such revocation be forfeited to the State.