HOTEL RESIDENCY PALACE Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS special appeal is directed against the order of the learned Single Judge dated 12.5.2005 dismissing the writ petition of the appellant along with another writ petition preferred by Hotel Rajputana Palace. Facts of the case briefly stated are as follows:

(2.) THE appellant which is engaged in hotel business obtained licence for retail sale of foreign liquor in the hotel premises in terms of the Rajasthan Excise (Grant of Hotel Bar/Club Bar/Restaurant Beer Bar Licences) Rules, 1973 read with the Rajasthan Excise Rules, 1956 under the Rajasthan Excise Act, 1950. The case of the appellant is that it held licence for the period 2004 -05 expiring on 31.st March, 2005. On 28.2.2005 the appellant submitted application after depositing the required amount in terms of Rule 72A of the Rules of 1956 which requires application for renewal should be made at least one month before commencement of the year along with the prescribed licence fee Rs. 1.50 lakhs, and it was entitled to have the licence renewed on the same terms and conditions as prevailing on 28.2.2005 in accordance with the existing licence. However, the respondents demanded higher licence fee as per the amended rule which came into force with effect from 1.4.2005 by which the licence fee had been raised from Rs. 1.50 lacs to Rs. 3.00 lacs. In the circumstances, even though the appellant deposited the entire licence fee as prescribed in the rules, the licence was not renewed, and by communication dated 8.4.2005 it was asked to deposit further amount of Rs. 1.50 lacs. Feeling aggrieved the appellant filed writ petition for quashing the communication dated 8.4.2005 and a direction upon the respondents to renew the licence for the year 2005 -06 forthwith. The writ petition having been dismissed by the learned Single Judge, the appellant has come to the Division Bench in appeal.

(3.) BEFORE considering the submissions of counsel, it would be appropriate to notice the relevant provisions at one place. Section 24 of the Rajasthan Excise Act provides for grant of exclusive privilege of manufacture, sale - by wholesale or by retail - etc. of country liquor, foreign liquor etc. under a licence. Section 41 of the Act empowers the State Government to make rules, among other things, prescribing the procedure to be followed in the matter of grant of licence for vend by wholesale or by retail any excisable article. In exercise of the said power the State Government has framed the Rajasthan Excise Rules, 1956 (in short, 'the 1956 Rules') and the Rajasthan Excise (Grant of Hotel Bar/Club Bar/Restaurant Beer Bar Licences)Rules, 1973(in short, 'the 1973 Rules'). The 1956 Rules are general in application as compared to the 1973 Rules which are applicable to hotels, clubs and restaurants and have an overriding effect in case of any conflict. The relevant provisions are as under - Rules of 1956