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ASHOK LANKA AND ANR. versus RISHI DIXIT AND ORS.

Citation: [2005] SUPP. 1 S.C.R. 299 · Decided: 11-05-2005 · Supreme Court of India · Bench: N. SANTOSH HEGDE · Disposal: Disposed off

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Judgment (excerpt)

ASHOK LANKA AND ANR. 
A 
v. 
RISHI DIXIT AND ORS. 
MAY I 1, 2005 
[N. SANTOSH HEGDE ANDS. B. SINHA, JJ.] 
B 
Chhatisgarh Excise Act, 1915; Ss. 7(e), 62 and 63/Chhatisgarh Excise 
Settlement of Licences for Retail Sale of CountJy/f oreign Liquor Rules, 2002; 
Rules4, 8, 9, JO, JI, 13and23/Constitutionoflndia, 1950; Entries8and51 C 
of List-fl of the Seventh Schedule. 
Allotment of Country/Foreign liquor shops-Applications for grant of 
licence-Licence granted without proper scrutiny of the applications-
Procedural requirements in terms of Rule 9-Mandatory or directory-Held: 
1915 Act is regulatory in nature-Before a licence is granted, applicant must D 
satisfy the eligibility requirements-An affidavit is required to be filed disclosing 
all the requisite information to enable the authorities to verify the same-
A uthorities could even cancel the licence on ground of non filing of affidavit-
Thus, requirement of.filing of such affidavit is mandatory-Authorities are not 
empowered to dispense with the statutory requirement of filing of an affidavit-
Some of the candidates did not fulfil the statutory requirements, even then E 
licences were granted to them-Hence, the entire exercise of scrutiny as regards 
ascertainment of eligibility vis-a-vis selection processes required to be 
undertaken by the selection committee afresh-However, candidates already 
selected could carry on the trade in liquor in terms of the directions-Directions 
issued 
Jurisdiction/Power of High Court to deal Public Interest Litigation-
Discussed 
Administrative Law-Subordinate Legislation: 
F 
Amendment in the Rules by the States in exercise of its rules making G 
power-Held: State is not empowered to amend the Rules in order to justify 
the illegal order on the part of the authorities. 
The State Government of Chhatisgarh had invited applications for 
299 
H 
300 
SUPREME COURT REPORTS [2005] SUPP. I S.C.R. 
A grant of li~ences for Country/Foreign liquor shops under the provisions 
of Chhatisgarh Excise Act and Rules made thereunder. A large number 
of applications were received and selection process began. In the meantime, 
some of the candidates challenged the selection process on the ground that 
the selection process was vitiated as affidavit was not filed by the applicants 
B which was a mandatory requirement under the Rules; and that the 
selection was made by drawing a lot through the computer and not 
manually. The High Court held that the State was entitled to make use of 
computer in the selection process; and that since the selection committee 
did not make any scrutiny as regards eligibility conditions/requirement 
of filing of affidavit in terms of the Rules, a fresh selection be made in 
C terms of the extant rules. Hence the present appeals. Disposing of the 
appeals, the Court 
HELD: 1.1. It may not be necessary for this Court to consider as to 
whether the public interest litigation should have been entertained by the 
High Court or not. The High Court did entertain the public interest 
D litigation without any objection and ultimately allowed the same. 
Furthermore it is well settled that even in a case where a petitioner might 
have moved the court in his private interest and for redressal of personal 
grievances, the court in furtherance of the public interest may treat it 
necessary to enquire into the state of affairs of the subject of litigation in 
E the interest of justice. [321-D-F) 
Guruyayoor Devaswom Managing Committee and Anr. v. C. K. Rajan 
and Ors., 12003) 7 SCC 546 and Prahlad Singh v. Col. Sukhdev Singh, 11987) 
1 sec 727' relied on. 
F 
1.2. When public interest litigation is entertained the individual 
conduct of the writ petitioners would take a backseat. There cannot be 
any doubt whatsoever that in a given case a party may waive his legal 
right. In an appropriate case, the doctrine of acquiescence or acceptance 
sub silentio may also be invoked but the High Court, in the instant case, 
has gone into the question with a wider perspective. This Court is not only 
G required to construe the provisions of the statute but also to take into 
consideration the subsequent events which took place vis-a-vis the action 
on the part of the State after passing of the interim order. The issue as 
regards application of acquiescence or waiver, therefore, has become 
irrelevant. [321-G-H; 322-A] 
H 
Haryana State Coop. Land Dev. Bank v. Nee/am, (2005) (2) SCALE 
f 
ASHOK LANKA v. RISH! DIXIT 
301 
434, relied on. 
A 
2.

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