LexSTATE OF MADHYA PRADESH & ORS. versus NANDLAL JAISWAL & ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
- STATE OF MADHYA PRADESH & ORS. v. NANDLAL JAISWAL & ORS. OCTOBER 2~, 1986 [P.'I. BHAGWATI C.J.l. AND. V. KHALID, JJ.) Madhya Pradesh Excise Act, 19I5, sections 13, 14 and 62(2)(h) read with Rule XXll of the Madhya Pradesh Excise Rules and Rules Ill to V of Distillery Warehouse Rules. Scope of-Disposal of licences of manufacture or sale of intoxicants-Whether it was obligatory on the part of the competent authority to adopt the "tender method" failing which the "auction'', failing which again by fixed licence fee method - .and so on as prescribed in Ruic XXJf. Licences-Grant of D-2 licences as per the policy decision of the Government of Madhya Pradesh-Whether the licence granted create a monopoly in favour of the licencees. Policy decision of the State to privitise the liquor distilleries after careful consideration of all the facts emanating from the application of the Madhya Pradesh Distilleries Association-Whether the High Court could bifurcate it into two and strike down one part of the policy as bad. "Industries (De;•elopment and Regulation) Act, 1951, Section 11- . Whether non-obtaining a licence from the Central Government disen- titled the setting up distilleries·-Such a plea not taken in the High Court-Supreme Court will not cor1$ider a new plea in an appeal under Article I 36 of the Constitution. Constitution of India, I950, Article 14--Applicabi/ity a/- Whether will apply to grant of liquor licences. Laches in filing writ petition after the implementation of the policy decision dated 30.I2.84--Seven licences acted upon and spent at least I to 5 crores and altered their position-Whether a writ could be granted. Practice and Procedure-Judgment writing,Objectionable re- marks should be avoided-If any, be expunged. A B c D E F G Madhya Pradesh Excise Act, 1915 regulates the manufacture, sale H and possession of intoxicating Uquor in the State of Madhya Prad .... 2 SUPREME COURT REPORTS [1987] 1 S.C.R. A Section 14 deals with the establishment or licensing of distilleries and warehouses. The State Government has, in exercise of the power con- ferre under section 62, made several sets of Rules. Rule II of the Rules of General Application made inter alia under sub-section 2(h) of section 62 lays down "live years" as the maximum period for which wholesale licences for the manufacture supply and sale of liquor could be granted B Rule XXII provides .for the manner in which licences for the manu- facture or sale of intoxicants shall be disposed. There were at all material times in the State of Madhya Pradesh nine distilleries for the man11facture of spirit which were established long back by the State Government under a licence issued by the E'xcise C Commissioner. These nine distilleries were located at Gwalior, Ujjain, Dhar Badwaha, Chhatisgarh, Bhopal, Seoni, Nowgaon (owned by pri- vate individuals always) and Ratlam (owned by the Government). So far as the first seven distilleries are concerned, the land and buildings in which they were housed belonged to the State Government and origi- nally the plant and mach'.nery also belonged to the State Government D but in course of time successive holders of the D-2 licences in respect of these distilleries replaced the .Plant and machinery. The practice fol- lowed by the Excise Department in regard to the working of these distilleries was to invite tenders for the wholesale supply of country liquor from these distilleries and the tenderers were requested to quote their rates for the wholesale supply of country liquor to the State i: Government. Normally the lowest tenders were accepted but at times the State Government used to accept even higher tenders taking various relevant factors into account. The State of Madhya Pradesh was de- vided in· several areas and a particular area was attached to each distil- lery for the wholesale supply of cuuntry liquor in that area. The person whose tender was accepted for any particular distillery was given a D-2 F licence for working the distillery and also a D-1 licence for wholesale supply of country liquor manufactured in that distillery to retail ven- dors in the area attached to the distillery. These licences in Forms D·l and D-2 were ordinarily issued for a ~ri~ of five years. Respondent Nos. 5 to l I in the writ petition.of Nandlal Jaiswal were the holders of D-1 and D-2 licences in respect of these distilleries for the period ending G 31st March, 1986. The
Excerpt shown. Read the full judgment & AI analysis in Lexace.