AJAY KUMAR MITTAL,J. - (1.) This order shall dispose of CWP Nos.5593, 5740 and 7668 of 2016 as learned counsel for the parties are agreed that the issues involved in these petitions are identical. However, the facts are being extracted from CWP No.5593 of 2016.
(2.) In CWP No.5593 of 2016, the petitioner prays for quashing the newly created/added Clause 2.14 of L -1A licence in the Excise Policy dated 13.3.2016 for the year 2016 -17, Annexure P.1 being arbitrary, illegal and against the provisions of the Punjab Excise Act, 1914 (in short, "the Act") and the Punjab Liquor Licence Rules, 1956 (for brevity, "the Rules") as Excise department has no power/authority to add, delete or cancel any kind of category of licence in the Excise policy without amending the relevant Acts and the Rules where there is a chart of liquor licences. Further prayer has been made for a direction to the respondents to bring clear cut transparency in the procedure for allotment of L -1A licence by holding draw of lots. Direction has also been sought to the respondents to decide the legal notice dated 17.2.2016, Annexure P.2 submitted by the petitioner and to stay operation of issuance of L -1A licence till the pendency of the present writ petition.
(3.) A few facts relevant for the decision of the controversy involved as narrated in CWP No.5593 of 2016. The petitioner is engaged in the business of liquor trade for the past so many years in the State of Punjab. In the month of March 2016, the State of Punjab announced its Excise policy for the year 2016 -17 under the Act and the Rules. In the previous excise policy for the last year, there were different classes of licences mentioned in the Rules. The controversy arose when the State Government announced its excise policy for the year 2016 -17 in which excise department has added a new dimension to the category namely L -1A licence which is above the category of L -1 licence which is a wholesale licence for the sale of Indian made foreign liquor (IMFL). The relevant portion of the terms and conditions for the allotment of new category of L -1A licence as stipulated in Clause 2.14 of the excise policy for the State of Punjab for the year 2016 -17 reads as under: - "Clause 2.14 i) It is necessary for the applicant for this licence to have an authority/consent letter from the manufacturing unit. ii) Any manufacturing company cannot issue the authority/consent letter to more than one person/company/firm/organization. iii) The manufacturing company will give this consent letter to that person/company/firm/organization who is at Arms Length Distance from the manufacturing company provided there is no promoter, director, partner in the manufacturing company or there is no holding, subsidiary, closely held company, fully/partially owned/financed/managed firm/company. iv) L -1A licensee will purchase IMFL (except Beer) wine, RTD from the State or the manufacturing companies situated outside the State and will sell it to only L -1 licensees. v) It is proposed that the licence fees for the L -1A (IMFL) for the year 2016 -17 is fixed at Rs. 2.50 crores and it is proposed to have the security amount of this licence fixed at Rs. 25 lacs." According to the petitioner, the L -1A licence has been added/created just to monopolize the trade of liquor in the State of Punjab. Earlier, there was procedure in the excise policy that the person who was licensee of L -1 wholesale licence shall take the liquor directly from the manufacturing company. After adding L -1A licence, it has been specified that a person who is holder of L -1 licence will now have to take the liquor for sale from the L - 1A licensee i.e. newly created category of licence in the excise policy for the year 2016 -17. It has been further claimed that the new licence has been created to monopolize the liquor trade and extend the same to the particular group of persons namely Chadha group, Malhotra group, Doda group and AD group who are at present major stake holders in the liquor business in the State of Punjab and are instrumental in influencing the excise department for creation of new category i.e. L -1A licence for their own economic interest. The petitioner avers that there is no power with the excise department to add or cancel any classification of the licensees in the excise policy without amending the Act and the Rules. Further, it is also not specified who is the competent authority to grant the L -1A licence and who is responsible to legally monitor or scrutinize the application for grant of L - 1A licence. No criteria has been prescribed for the manufacturer to give letter of consent if more than one person shows interest for its L -1A licence. The projected number of IMFL L -1A licensees in the State of Punjab is fixed at three and there will be just two L -1A liquor licence for Beer in the entire State of Punjab which would lead to monopolization of liquor trade in the State of Punjab. Still further, the term Arms Length Distance for grant of L -1A licence only to the persons who are in any way not related to the manufacturing company is a very subjective term. The petitioner also sent a legal notice cum representation dated 17.3.2016, Annexure P.2 to the respondents but no reply has been received from the department. Hence the instant writ petition.;