PAUL ENTERPRISES & ORS. versus RAJIB CHATTERJEE & CO. & ORS.

Citation: [2009] 1 S.C.R. 259 · Decided: 13-01-2009 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed
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Judgment (excerpt)

... 
[2009] 1 S.C.R. 259 
PAUL ENTERPRISES & ORS. 
v. 
RAJIB CHATTERJEE & CO. & ORS. 
(Civil Appeal Nos. 101-102 of 2009) 
JANUARY 13, 2009 
[S.B. SINHA AND J.M. PANCHAL, JJ.] 
WEST BENGAL EXCISE (SELECTION OF PERSONS 
FOR GRANT OF LICENSE AT NEW SITES FOR RETAIL 
SALE OF SPIRIT AND CERTAIN OTHER INTOXICANTS 
OTHER THAN FOREIGN LIQUOR ON CATEGORIES OF 
LICENSEE AND LICENSES FOR DENATURED SPIRIT) 
ORDER, 2000: 
Clause 3, Explanation, and Clause 5(3) - Criteria for 
grant of licence for country spirit shops- 'Unemployed youth' 
- Connotation of - Held: A person helping his brother in a 
shop of which he is not owner or a person carrying on a 
business which is of seasonal nature, and living on mere 
subsistence earning as of necessity cannot be considered to 
be gainfully employed - The word 'unemployed' is required 
to be given a purposive meaning which satisfies text and 
context in which the word has been used - Interpretation of 
Statutes - Purposive construction. 
WORDS AND PHRASES: 
Expression 'unemployed youth' - Connotation of in the 
context of grant of licence for retail sale of spirit. 
A 
B 
c 
D 
E 
F 
In response to an advertisement issued by the State 
of West Bengal inviting applications from companies/ G 
firms/societies formed by unemployed youths, 
respondent No.1, a partnership firm of respondents Nos.2 
.·and 3, applied for and was granted licence for country 
spirit shops. Appellant No.1, a partnership firm of 
259 
H 
260 
SUPREME COURT REPORTS 
[2009] 1 S.C.R. 
A appellants Nos.2 and 3, filed a writ petition before the 
High Court challenging the grant of licence to the 
respondents primarily on the ground that respondent 
No.2 carried on seasonal business of paddy and 
respondent No.3 carried on business with his brother, 
B and as such both could not be termed as 'unemployed 
youth'. The single Judge of the High Court allowed the 
writ petition, but the Division Bench in intra-court appeal 
reversed the judgment of the Single Judge. 
c 
Dismissing the appeals, the Court 
HELD:1.1. Keeping in view the provisions of Clause 
3 of the West Bengal Excise (Selection of Person for grant 
of License at New Sites for Retail Sale of Spirit and 
Certain other Intoxicants other than Foreign Liquor on 
D Categories of Licensee and Licenses for Denatured 
Spirit) Order, 2000, there are three criteria v.iz., (i) the age 
of the applicant, (ii) he has to be registered as 
unemployed in any Employment Exchange in the State 
of West Bengal and (iii) certified to be unemployed by any 
E of the authorities specified therein. The main thrust 
appears to be on the registration of a person as 
unemployed in the Employment Exchange. Certificate is 
requi~ed to be given by the authorities specified therein 
as despite such registration and/ or continuation thereof, 
F a person may be employed with a private person or in 
some other districts or in some other States. [Paras 13, 15 
and 18) [268-H; 269-A; 271-B-E] 
1.2. A person cannot be said to be employed only 
because he earns his bare subsistence livelihood by 
G engaging himself in some work. In the instant case, one 
of the respondents was helping his brother who was 
owner of the shop. He was not the owner of the shop. 
The other respondent used to carry on business which 
is of seasonal nature. He was, therefore, also not a full 
H fledged businessman. Nothing has been brought on 
PAUL ENTERPRISES & ORS. v. RAJIB CHATTERJEE & 261 
CO. & ORS. 
record to show that they were income tax payees or were 
A 
otherwise established in their life. It may be true that the 
authorities specified in the Explanation appended to 
Clause 3 of the Order were required to issue certificate 
on the basis of their own concept in regard thereto. It is 
true that no guideline was issued, but, probably none 
8 
was required to be issued, as the said authorities 
concerned, keeping in view the legal position, would be 
presumed to be aware of the financial status as also the 
fact as to whether the candidates concerned remained 
unemployed. [Para 19] (271-G-H; 272-A-B] 
c 
1.3. The Order does not contemplate that the 
applicants would be absolutely poor or they would not 
have any property at all. They were required to establish 
a business in liquor. They were required to make 
substantial investment. Their financial capacity was · D 
required to be such so as to enable them to carry out the 
business and fulfill their obligations both contractual and 
statutory in terms of the provis
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