P. N. KAUSHAL ETC. versus UNION OF INDIA

Citation: [1979] 1 S.C.R. 122 · Decided: 16-08-1978 · Supreme Court of India · Bench: V.R. KRISHNA IYER · Disposal: Dismissed

Cited by 3 judgment(s) · cites 2 · see the full citation network in Lexace

Judgment (excerpt)

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122 
P. N. KAUSHAL ETC. 
V. 
UNION OF INDIA 
August 16, 1978 
[V. R. KRISHNA IYER, D. A. DESAI AND 0. CHINNAPPA REDDY, JJ.) 
Punjab ExcisP Act 1 of 1914, Section 59(/)(v) and Punjab Liquor Licence 
Rules 1956-Rule 37--Constitutional Validity of-Business in 
intoxicants-
State if has power to prohibit absolutely .every forni of activity relating thereto. 
Constitution of India, 1950-Part IV of the Constitution must enter the soul 
of Parr Ill and the laws niade by the State-Articles 38 and 47-Progressive 
implenientation of ;he policy ·of prohibition. 
The Punjab Excise Act 1914 contemplates grant of licences for trading in 
(Indian) foreign and country liquor. 
Section 59(f) (v) of the Act provides 
for the fixing of the days during which any licensed premises may or may 
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not be kept open for sale of liquor and the closure of such premises on 
special occasions. The conditions of the licence includes restrictions of varlOus 
types including obligation not to sell liquor on certain days and during certain 
hours. Rule 37(a) as it originally stood prohibited sale of liquor on Tuesdays 
upto 2 p.m. and also on the 7th day of every month. This rule was amended 
by a notification whereby in place of "Tuesdays upto 2 p.m. plus the 7th of 
every 1nonth" "Tuesday and Friday in very week'', was substituted 
as 
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days when liquor vending was prohibited. 
"Note" appended to the said ruie 
exempted tourist bungalows and rest-houses run by the Department of the State 
Government from the opera·tion of the condition regarding closure. Consequent 
upon the change of days, the 
licence fee payable by a vendor · \Vas reduced 
from Rs. 12,000/- to Rs. 10,000/- to compensa-te for the marginal loss caused 
by two days' closure. 
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The petitioners who were licensed vendors of liquor in the State challenged 
the constitutionality of section 59(f) (v) and the vires of Rule 37 on the ground 
that section 59(f) (v) vested an unguided, uncanalised, vague and vagarious 
power in the Financial Commissioner to fix the days or number of days and 
hours or number of hours without laying down a•ny guidelines, indicators or 
controlling poin':s. 
The State on lhe other hand contended that the subject-n1atter of the legisla-
tion being a deleterious sub&tance (liquor), requiring restriction.'i in the direction 
of moderation in consumption, regulation regarding the days and hours of sale 
and appropriateness in the matter of location of the places of sale. reasonableness 
and arbitrariness mu.st be tested on the touchstone of principled pragmatism and 
living realisn:, 
Dismissing the writ petitions, 
HELD: (a) Section 59(f)(v) of the Punjab Excise Act 1914 is valid. [158 
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P. N. KAUSHAL v. UNION (Krishna Iyer, J.) 
123 
(b) The regulation of the number of days and the duration of the houl3 
when supply of alcohol by licensees shall be stopped is quite reasonable whether 
it be two days in a week or more. [158D] 
(c) The exercise of the power to regulate, including to direct closure for 
some days every week, being reasonable and calculated to produce temperan.:e 
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and promote social welfare, cannot be invalidated on the imaginary possibility 
Qf misuse. The test of the reasonableness of a provision is not the theoretical 
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possibility of tyranny. 
[158E] 
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(d) There is enough guideline in the scheme and provisions of the Punjab 
Excise Act to govern the exercise of the power under sections 58 and 59. [ l 58E] 
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(1) (a) The Constitutional test of reasonableness, built into Article 19 aOO 
-0f arbitrariness implied in Article 14 has a relativist touch. The degree Of 
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constitutional restriction and the strategy of meaningful enforcement will na·turaUy 
depend on the Third World setting, the ethos of our people, the economic 
compulsions of today and of human tomorrow. While scanning the rationale 
<>f an Indian temperance measure it would be useful to remember the univenral 
evil in alcohol and the particularly pernicious consequences of the drink ~vii 
in India. SociGtal realities shape social justice. [133H, 134A-B} 
(b) "\Ve, the people of India" have enacted Article 47 and "we the Justices 
<>f India" cannot 'lure it back to cancel half a life' or 'wash out a word ot it', 
especially when progressive implementation of the policy of prohibition is, by 
Articles 38 and 47, made fundamental to the country's governance. 
[138HJ 
(c1 The Constitution is the property of the· people a

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