DALJIT SINGH CHOUDHARY Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) ALL petitioners are holder of licence for the retail on sale of beer at restaurants. Petitioners are aggrieved by the policy decision taken by the government not to renew the licences of the petitioners to sale the beer from their respective restaurants.

(2.) WITH a view to enact for Rajasthan a uniform law relating to export, import, transport, manufacture, sale and possession of intoxicating liquor the Rajasthan Excise Act, 1950 was enacted and was brought into force with effect from 1. 7. 1950. Some of the provisions regulating sale and possession of the intoxicating liquor are contained in the following Sections of the Act of 1950. Section 19 of the Act prohibits possession of excisable articles in excess of the prescribed limits otherwise than the permits granted by the Excise Commissioner. Likewise Sections 20 and 21 prohibits sale of excisable articles without licence from the competent authority. Section 24 empowers the Excise Commissioner to grant a licence for the exclusive privilege of manufacture and sale of country liquor, foreign liquor or intoxicating drugs. Section 26 permits the grant of such exclusive privilege to let or assign any portion of his privilege which is subject to the licence by the Excise Commissioner. Section 28 provides for excise duty and Section 31 authorises imposition of restriction on a licence that the licence shall be subject to the payment of fees and shall be subject to such conditions as may be described by the State Government under the Rules. Section 34 gives power to the licensing authority for cancellation or suspension of any licence. Section 37 lays down that no person to whom a licence has been granted under the Act shall have any claim to the renewal of any such licence or to any claim for compensation on the determination or non-renewal thereof. Section 41 is a rule making power for regulating the period and localities for which licence for sale of excisable article may be granted. Procedure to be followed and matters to be ascertained before granting any such licences, prohibiting sale of any excisable article to any person or class of persons, for preventing drunkens or disorderly conduct in or near any licensed premises. Sub-section (3) provides that rule making power shall be exercised with previous publication. The proviso thereto, however, provides that any such rule may be made without previous publication if the State Government considers that it should be brought into force at once.

(3.) THE Supreme Court has considered the entire case law relating to right to carry on trade and business in potable liquor in the case of Khodia Distilleries & others vs. State of Karnataka & Others (1 ). Hon'ble Mr. Justice P. B. Sawant speaking for the constitution bench has said that rights protected under Article 19 (1) of the Constitution of India are not absolute but qualified. THE right to practice any profession or to carry on any profession, trade or business does not extend to practising a profession or carrying on an occupation, trade and business which is inherently vicious and pernicious and condemned by all civilised societies. It does not entitle citizens to carry trade and business in activities which are immoral and criminal and in article or goods which are obnoxious and injurious to health, safety and welfare of general public. THEre cannot be business in crime. A citizen has, therefore, no fundamental right to do trade or business in liquor. Hence the trade or business in liquor can be completely prohibited. THE State has, therefore, power to completely prohibit the manufacture, sell, possession, distribution and consumption of potable liquor as a beverage except when it is used and consumed for medicinal purposes. For the same reason, State can create a monopoly either in itself or in the Agency created by it for the manufacture, possession, sell and distribution of the liquor as beverage and also sell the licence to citizens for the said purpose by charging fees. This can be done under Article 19 (6) or even otherwise. THE restrictions and limitations can extend to the State carrying on the trade and business itself to the exclusion of and elimination of others and/or to preserving to itself the right to sell licence to be trade or business in the same, to others.