N K DOONGAJI AND CO Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) THIS order will govern Miscellaneous Petitions Nos. 391, 392, 394, 395, 399, 400, 401, 403, 404, 405, 407, 409, 413, 415, 416, 417, 420, 421, 422, 423, 424, 427 and 430 of 1970.

(2.) THE petitioners in these cases are Excise Contractors and hold licences for sale of foreign liquor in Form F. L. 1 at various places in the State. A licence in Form F. L. 1 is for retail sale of foreign liquors not to be drunk on the premises. Before 1964, licences for sale of foreign liquor were granted by the Excise authorities on applications. In 1964-65, the State Government for the first time introduced the system of public auctions for the grant of such licences. This action of the Government was challenged by writ petitions in the High Court; but they were subsequently withdrawn after the Madhya Pradesh Excise (Amendment and Validation) Act, 1964 (Act No. 19 of 1964) was passed. Thereafter, auctions were held in the year 1965-66. In the year 1966-67, no auction was held and the old licences were renewed; In 1967-68 also, the old licenses were renewed, but in that year new licences as a result of scrapping of prohibition were auctioned. In 1968-69, the old licences were renewed, while new licences were auctioned. The State Government at that time gave an assurance that the licences granted once by auction would be renewed subsequently on fees per bottle system and the licences in Form F. L. 1 and Form F. L. 2 were renewed from year to year since then vide Annexure 'a' in Miscellaneous Petition No. 390 of 1970. The policy of renewal of the old licences was continued till 1970-71.

(3.) THE petitioners acquired licences for foreign liquor shops in Form F. L. 1 at the excise auctions held in the year 1968-69 or so by offering huge bids in the expectation that thereafter the licences would be renewed from year to year without any fresh auctions. The licences were renewed during the year 1969-70 on accepting Rs. 1,000/- as renewal fee. For the year 1970-71 also, the State Government decided to renew the licences, as would appear from the notification, dated 28th March 1970, vide Anuexure 'b'. According to that notification, the foreign liquor licences in Form F. L. 1 were to be disposed of from 1st April 1970 on payment of Rs. 1,000/-per annum and a fee per bottle at the rate of Rs. 1/- per bottle of Malt liquor and Rs. 6/per bottle of foreign liquors or other than Malt liquor and cider. The petitioners, therefore, expected that their licences would be renewed for the year 1970-71; but the Government announced its policy of issuing licences in Form F. L. 1 by auction vide news item in 'nai Duniya', dated 21-8-1970, (Anuexure 'c' in Miscellaneous Petition No. 390 of 1970 ). Being aggrieved thereby, the petitioners have filed these petitions praying that the notification, dated 21st August 1970 relating to auctions of all retail vends of foreign liquor be quashed and the State Government and other authorities be restrained from auctioning foreign liquor shops and be ordered to renew the licences held by the petitioners from time to time. The petitioners have challenged the action of the Government on various grounds which shall be considered in the course of this order.