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CHHOTU SINGH versus STATE OF MAHARASHTRA & ORS.

Citation: [1988] 1 S.C.R. 303 · Decided: 22-09-1987 · Supreme Court of India · Bench: A.P. SEN · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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CHHOTU SINGH 
v, 
STATE OF MAHARASHTRA&, ORS. 
SEPTEMBER 22, 1987 
[A.P. SEN AND B.C RAY, JJ.) 
Permission granted by State Government for shifting country 
liquor shop from the village to another-Whether arbitrary or in breach 
of guidelines contl!ined in Government Circulars on the subject-High 
Court qUl!Shed the Government order granting permission. 
· 
A 
B 
The appellant Chhotu Singh, who had been granted C.L. III C 
licence for vending country liquor in Village Sawli, applied for pennis· 
sion to shift his liquor shop from Village Sawli to Village Narsi 
Chaurasta as there was very little demand for country liquor in Sawli 
with a small population. The Collector recommended the transfer of the 
shop of the appellant after making due enquiries contemplated in the 
D 
guidelines laid down in the government circular dated April 27, 1984 
for shifting shops. The State Government granted the permission 
applied for by the appellant. 
Upon the appellant's shop being shifted to Narsi Chaurasta, the 
respondent No. 5 in the appeals, who already ha.d a liquor shop in Narsi 
Chanrasta, challenged by a Writ Petition the pennlssion granted by the 
Government to the appellant to shift his liquor shop to Narsi 
Chaurasta. The High Court allowed the Writ Petition, quashing the 
order of the Government granting permission for shifting the liquor 
shop, on the ground that the said permission had been granted without 
E 
the criteria laid down ill the Government circular dated March 18, 1982 
being duly considered. A review petition against the Order of the High F 
Court, allowing the Writ Petition, was dismissed. 
The appellant Chhotu Singh has moved the Court by special leave 
against the Orders of the High Court, allowing the Writ Petition and 
dismissing the review application, and the only question for considera· 
tion in the matter is whether the permission granted by the State G 
Government for shifting the appellant's C.L. III liquor shop from 
Village Sawli to Village Narsi Chaurasta is supported by the guidelines 
laid down in the latest government circular dated April 27, 1984, which 
has sui>erseded all the previous such circulars. 
Allowing the appeals, the Court, 
H 
.303 
304 
SUPREME COURT REPORTS 
[1988] 1 S.C.R. 
A 
HELD: The Collector had recommended permission for shifting 
i 
the liquor shop of the appellant from Village Sawli to Village Narsi 
Chaurasta after making due enquiries, with regard to the shifting of the 
said shop, in accordance with the guidelines contained in the latest 
government circular on the subject, dated April 27, 1984, which had 
superseded the guidelines in the previous such circulars. The sanction 
B 
accorded to the shifting of the appellant's shop is not in breach of the 
said latest circular dated April 27, 1984 and it cannot be assailed as 
arbitrary. 1306G, B; W7E, B-Cl 
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 2331- -
32 of1987. 
c 
From the Judgment and Order dated ·; .4.1986 of the Bombay 
High Court in Review Petition No. 837 of 1986. 
{ 
Dr. Y.S. Chitale and Ranjit Kumar for the Appellant. 
D 
T.S. Krishnamoorthy Iyer, D.M. Nargolkar, A.M. Khanwilkar 
and A.S. Bhasme for the Respondents. 
The Judgment of the Court was delivered by 
B.C. RAY, J. Specialleave granted. Arguments heard. 
).. 
E 
The subject matter of challenge in this appeal is the order dated 
7th April, 1986 made by the High Court of Bombay allowing the writ 
petition No. 189 of 1986 quashing the permission granted in favour of -
the petitioner by the Government by its order dated 24.12.1985 per-
milting the shifting of the country liquor shop from Mouza Sawli to 
F 
Mouza Narsi Chaurasta as well as the order of the High Court dated 
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17.7.1986 rejecting the review petition No. 837 of 1986. The petition-
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er's father had a licence to run the country liquor shop in village Narsi 
in Taluka Biloli, District Nanded, Maharashtra. In 1983 the said 
licence was transferred in the name of the petitioner (respondent No. 5 
in this appeal). The. appellant was granted a licence, commonly known 
G as C.L. III licence for vending country liquor in village, Sawli, Taluka 
Biloli, District Nanded. In November, 1984, the appellant was permit-
ted to join one Ataullah as his partner to run the said country liquor 
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shop in village Sawli. The appellant found considerable difficulty in 
running the shop in village Sawli as there was very little demand for 
country liquor in the said village having small 

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