Case Note & Summary
The appellant, Ramkishor S/o Nathulal Jaiswal, was the proprietor of M/s. J. B. Restaurant holding an FL-III license under the Bombay Foreign Liquor Rules, 1953 for selling foreign liquor. On 09/04/2002, officials of the Superintendent of State Excise inspected the premises and found breaches: unauthorized alterations in the licensed premises, a vast difference in stock leading to shortages, and possession of 1680 x 180 mm bottles of 50 U.P. rum and 12 x 750 mm bottles of Diplomat Whisky without transport permit. The Superintendent reported to the Collector, who issued a show cause notice on 30/01/2004 calling upon the appellant to show cause why the license should not be cancelled. The appellant filed a reply on 20/02/2004 but did not appear on the hearing date fixed by the Collector. The Collector, after considering the reply and material, cancelled the license on 16/03/2005. The appellant appealed to the Commissioner, who confirmed the cancellation on 18/05/2005. The appellant then filed a writ petition before the Single Judge, who dismissed it on 11/12/2009. The present Letters Patent Appeal challenged the Single Judge's order. The Division Bench heard arguments and perused the record. The court noted that the appellant had not availed the opportunity of hearing despite notice, and the breaches were serious. The court held that the cancellation was justified and the appellant was given adequate opportunity. The appeal was dismissed, confirming the cancellation of the license.
Headnote
A) Excise Law - Cancellation of FL-III License - Breach of License Conditions - Bombay Foreign Liquor Rules, 1953 and Bombay Foreign Liquor (Sale on Cash, Register of Sales, etc.) Rules, 1969 - The appellant's license was cancelled for unauthorized alterations in premises, stock shortages, and possession of liquor without transport permit. The appellant failed to appear before the Collector despite notice and did not avail the opportunity of hearing. The Single Judge dismissed the writ petition, and the Division Bench upheld the cancellation, holding that the breaches were serious and the appellant was given sufficient opportunity. (Paras 1-10)
B) Excise Law - Show Cause Notice - Opportunity of Hearing - Natural Justice - The Collector issued a show cause notice and fixed a date for hearing. The appellant sent a reply but did not appear on the hearing date. The Collector proceeded ex parte and cancelled the license. The Division Bench held that the appellant was given adequate opportunity and the cancellation was not violative of natural justice. (Paras 4-8)
Issue of Consideration
Whether the cancellation of the FL-III license was justified on the basis of breaches found during inspection and whether the appellant was given adequate opportunity of hearing.
Final Decision
The Letters Patent Appeal is dismissed. The judgment and order dated 11/12/2009 passed by the Single Judge in Writ Petition No.2796/2005 is confirmed. The cancellation of the FL-III license is upheld.
Law Points
- Cancellation of liquor license
- Show cause notice
- Breach of license conditions
- Bombay Foreign Liquor Rules 1953
- Bombay Foreign Liquor (Sale on Cash
- Register of Sales
- etc.) Rules 1969
- Opportunity of hearing
- Letters Patent Appeal
Case Details
2021 LawText (BOM) (01) 99
Letters Patent Appeal No.65 of 2010 in Writ Petition No.2796 of 2005 (D)
A.S. Chandurkar, G. A. Sanap
Shri S. G. Jagtap for appellant; Ms. S. S. Jachak, Assistant Government Pleader for respondents
Ramkishor S/o Nathulal Jaiswal
State of Maharashtra, Department of Home and State Excise; The Commissioner, State Excise; The Collector, State Excise, Amravati; The Superintendent, State Excise, Amravati
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Nature of Litigation
Appeal against dismissal of writ petition challenging cancellation of FL-III liquor license.
Remedy Sought
Appellant sought to set aside the order of cancellation of his FL-III license and the dismissal of his writ petition.
Filing Reason
Appellant's FL-III license was cancelled by the Collector on 16/03/2005 for breaches of rules and license conditions, confirmed by the Commissioner on 18/05/2005, and the writ petition was dismissed by the Single Judge on 11/12/2009.
Previous Decisions
The Collector cancelled the license on 16/03/2005; the Commissioner confirmed cancellation on 18/05/2005; the Single Judge dismissed the writ petition on 11/12/2009.
Issues
Whether the cancellation of the FL-III license was justified on the basis of breaches found during inspection.
Whether the appellant was given adequate opportunity of hearing before cancellation.
Submissions/Arguments
Appellant argued that the cancellation was without proper opportunity of hearing and that the breaches were not serious.
Respondents argued that the appellant was given show cause notice and opportunity to appear, but he failed to appear, and the breaches were serious.
Ratio Decidendi
The appellant was given adequate opportunity of hearing through show cause notice and fixed hearing date, but he failed to appear. The breaches of rules and license conditions were serious, justifying cancellation of the license. The Single Judge correctly dismissed the writ petition.
Judgment Excerpts
In this Letters Patent Appeal, challenge is to the Judgment and order dated 11/12/2009 passed by the learned Single Judge in Writ Petition No.2796/2005, whereby the learned Single Judge dismissed the writ petition and thereby, confirmed the order dated 18/05/2005 passed by the respondent No.2.
The respondent No.3 on the basis of material collected during the course of enquiry, issued Show Cause Notice dated 30/01/2004 to the appellant and called upon him to show cause as to why his license should not be cancelled.
The appellant filed his reply dated 20/02/2004 and tried to explain the position. The respondent No.3 fixed the date of hearing on 16/03/2005. The appellant did not appear on the said date. The respondent No.3, therefore, proceeded ex parte and passed the order dated 16/03/2005 cancelling the license.
Procedural History
On 09/04/2002, inspection of appellant's premises revealed breaches. Show cause notice issued on 30/01/2004. Appellant replied on 20/02/2004. Hearing fixed on 16/03/2005; appellant did not appear. Collector cancelled license on 16/03/2005. Appeal to Commissioner dismissed on 18/05/2005. Writ petition filed; dismissed by Single Judge on 11/12/2009. Present Letters Patent Appeal filed; dismissed on 29/07/2021.
Acts & Sections
- Bombay Foreign Liquor Rules, 1953:
- Bombay Foreign Liquor (Sale on Cash, Register of Sales, etc.) Rules, 1969:
