Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Kerala Abkari Shops (Disposal in Auction) Rules 1974 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Kerala Abkari Shops (Disposal in Auction) Rules, 1974:r. 6(30)- Mixing of 'diazepam' in toddy- Held: Constitutes an offence - Licence liable to cancellation under r. 6(30) - Kerala Abkari Act - ss.57(a), 56.rr.6(28), 6(30) - Cancellation of licence under Rule 6(30) - Forfeiture of deposit in terms of Rule 6(28) would not automatically follow. Kera/a Revenue Recovery Act: s. 7 - Demand for loss incurred by Government in holding re-auction on cancellation of licence - Loss purportedly sustained by the State as if the privilege of sale in toddy was transferred for three years - Held: Licence was granted for one year only - Advertisement was made for one year and confirmation of sale was also accorded for a year only - Grant of licence for carrying out business as ~ • envisaged under Section 18A of the Kerala Abkari Act is imperative in character whereby a valid contract for a period of three years was clearly impermissible in law - Therefore, demand could not be made towards the loss suffered for three years - Kerala Abkari Act - s. 18A. Interpretation of statutes: Heydon's rule - Applicability ofAdministrative law: Principles of natural justice - Violation of - Held: Since no notice issued to licencee before cancellation of licence, principles of natural justice not complied with. Jurisdiction. Statutory authorities - Where two statutory authorities could exercise the same power, if a matter was heard by one authority, the other could not exercise the power.Doctrines/Principles: 'res extra commercium' - Carrying on business in liquor - Held: It is considered to be 'res extra commercium '. Words and phrases: Security - Meaning of. Appellants were carrying on business of toddy. In March, 1997, the State Government published a notification expressing its intention to part with its privilege of vending toddy through retail shops in the notified excise ranges for the year 1997-98 wherefor public auction was proposed to be held. Although the Notification for holding auction for one Financial year was published, the District Collector held auction for three years purportedly on the basis of past practice. Appellants were successful bidders. They entered into a temporary agreement for a period of three years. They were however granted licence to deal in the said commodity only for one year. The Board of Revenue confirmed the said auction. Appellants furnished security to the extent of one-third of the amount payable for the first year. In September, 1997, Excise Inspectors inspected the toddy shops of the appellants and took three bottles of toddy as sample. On chemical examination of samples, 'Diazepam' 1.8 mg. to 2.2 mg. per litre of toddy sample was detected. Pursuant thereto, criminal case was registered against appellants. However, appellants were acquitted. Separate proceedings were also initiated by Assistant Commissioner for cancellation of licences under Rule 6(28) and Rule 6(30). Licences were cancelled under Rule 6(30). So far as the orders directing cancellation of H licences in terms of the provisions of Rule 6(28) were concerned, they were referred to the Excise Commis-A sioner for confirmation. In the meantime, auctions were held. As no bidder turned out, the Assistant Commissioner of Excise entered into negotiations with some of the parties and granted licences to them.The matters were referred to the Commissioner of Excise for confirmation of sale. At that stage, the Board held that in cases where licences were cancelled in terms of Rule 6(30), Rule 6(28) would also be automatically attracted and on that basis, the decision of Assistant Commissioner was upheld. On 19.12.1997, the Assistant Commissioner of Excise issued another order forfeiting the security deposit. Consequent to the said order, the Circle Inspector of Excise issued a notice dated 8.1.1998 demanding a huge amount as also the interest thereon at the rate of 18% per annum stating that the State Government had suffered losses in holding re-auctions and wherefor licences were granted. Revenue Recovery proceedings were initiated under Section 7 of the Kerala Revenue Recovery Act. The appellants filed writ petitions, which were dismissed. Hence the appeals. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2009 INSC 323 |
Petitioner | V.k. Ashokan |
Respondent | Asstt. Excise Commnr. & Ors. |
SCR | [2009] 4 S.C.R. 331 |
Judgement Date | 2009-03-05 |
Case Number | 1541 |
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