Bombay High Court Upholds Transfer of FL-III Liquor Licence to Premises Near Educational Institution. Compliance with Rule 45(1)(c) Distance Requirement and Absence of Police Material Render Collector's Rejection on Law and Order Grounds Invalid.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The dispute arose from an application by respondent no.3 for transfer of an FL-III liquor licence from Village Padali Barav Grampanchayat to premises within Junnar Municipal Council, near an educational institution run by the petitioners. The Collector, Pune rejected the transfer on 19 November 2019 after considering objections raised by the petitioners, local residents, a Member of Parliament, a local MLA and Adivasi Shikshan Sanstha, citing likelihood of law and order problem. The Collector's own inspection report showed the distance from the main entrance of the petitioners' educational institution to the proposed premises was about 450 meters, from the new gate about 144 meters, and aerial distance about 95 meters, all exceeding the 75-meter prohibition under Rule 45(1)(c) of the Bombay Foreign Liquor Rules. The report also noted an existing hotel with similar licence at 375 meters to which petitioners had never objected. Despite these findings, the Collector rejected the application on extraneous grounds. Respondent no.3 appealed under Section 37(2) of the Maharashtra Prohibition Act, 1949. The Commissioner of State Excise allowed the appeal on 30 March 2021, observing that the Collector's order was based on grounds outside the rules and unsupported by police material. The petitioners filed a revision under Section 138 before the Principal Secretary, State Excise Department, who dismissed it on 22 June 2021. The petitioners then filed the present writ petition, raising two main contentions: first, a fresh police report was required to assess law and order; second, a Court Commissioner should be appointed to re-measure distance because the inspection was flawed. The High Court rejected both contentions. It held that the statutory distance requirement under Rule 45(1)(c) was clearly satisfied and that the Collector's rejection based on political representations and apprehension without material could not be sustained. The Court also held that the petitioners had not challenged the inspection report at the first opportunity and could not now ask the writ court to collect evidence; no perversity in the factual findings was shown. The appellate and revisional authorities were found to have correctly applied the rules and not succumbed to political pressure. The available text indicates the Court found no merit in the petition and declined to interfere, though the formal operative dismissal is not explicitly set out in the provided extract.

Headnote

A) Excise Law - Transfer of FL-III Liquor Licence - Distance Requirement - Bombay Foreign Liquor Rules, Rule 45(1)(c) - The Collector recorded that the distance from the educational institution to the proposed premises was 450 meters from the main entrance and 144 meters from the new gate, exceeding the statutory 75-meter prohibition; the appellate authority allowed transfer based on compliance with Rule 45(1)(c) and absence of challenge to inspection report - Held that once the statutory distance is complied with, mere apprehension of law and order cannot be used to defeat the transfer (Paras 3-4, 8-9).

B) Administrative Law - Exercise of Discretion by Licensing Authority - Grounds Outside Rules and Political Pressure - Maharashtra Prohibition Act, 1949, Sections 37(2), 138 - The Collector rejected the transfer application solely on objections from residents, MP, MLA and an education society, without any police report or material indicating law and order problem; the appellate and revisional authorities found such rejection outside the purview of rules - Held that orders based on extraneous considerations and apparent political pressure are invalid and cannot be sustained in judicial review (Paras 3, 5, 8).

C) Writ Jurisdiction - Appointment of Court Commissioner for Fresh Measurement - Collection of Evidence in Judicial Review - Not mentioned - Petitioners sought appointment of a Court Commissioner to verify distance, relying on Vikrama Shama Shetty; but they had not challenged the inspection report earlier and findings were not perverse - Held that the writ court would not aid petitioners in collecting evidence and could not reopen factual findings absent perversity (Paras 6, 8-9).

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Issue of Consideration

Whether a transfer of FL-III liquor licence can be refused solely on the ground of apprehended law and order when the premises comply with the statutory distance requirement under Rule 45(1)(c); and whether a writ court should appoint a Court Commissioner to re-measure distance when the earlier inspection report is uncontroverted and no perversity is shown.

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Final Decision

The High Court held that the petitioners' contentions lacked merit; it found that the Collector's rejection was based on extraneous considerations and political pressure, while the appellate and revisional authorities correctly applied Rule 45(1)(c). The court refused to appoint a Court Commissioner and held that factual findings cannot be reopened in writ jurisdiction absent perversity. The available text implies rejection of the writ petition but does not include a formal operative dismissal.

Law Points

  • Rule 45(1)(c) of Bombay Foreign Liquor Rules mandates minimum 75 meters distance from educational or religious institutions for FL-III licence
  • mere apprehension of law and order without police report is not a valid ground to reject transfer
  • licensing authority must not act on political pressure
  • writ court will not appoint Court Commissioner to collect evidence when inspection report is uncontroverted
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Case Details

2021 LawText (BOM) (10) 28

Writ Petition No.4918 of 2021

2021-10-12

G. S. Kulkarni, J.

2021:BHC-AS:14666

Mr. P .N. Joshi i/b. Mr. Milind Deshmukh for Petitioners, Mr. P .P . Kakade, GP with Mr. C.D. Mali, AGP for the State, Mr.Moinuddin M.Khan i/b. Mr. M. Khan for Respondent No.3

Devram Sawleram Mundhe & Ors.

The State of Maharashtra & Ors.

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Nature of Litigation

Civil writ petition challenging an order of the revisional authority under the Maharashtra Prohibition Act, 1949 arising from transfer of FL-III liquor licence.

Remedy Sought

Petitioners sought to quash the revisional order dated 22 June 2021, sought a fresh police report on law and order, and sought appointment of a Court Commissioner to verify the distance between their educational institution and the proposed licensed premises.

Filing Reason

Petitioners, who run an educational institution in Junnar, objected to transfer of FL-III licence to respondent no.3's premises, alleging distance less than 75 meters and likelihood of law and order problem.

Previous Decisions

Collector, Pune rejected respondent no.3's transfer application on 19 November 2019; Commissioner of State Excise allowed appeal on 30 March 2021; Principal Secretary (State Excise) dismissed revision on 22 June 2021.

Issues

Whether a liquor licence transfer can be rejected on the ground of apprehension of law and order when the statutory distance under Rule 45(1)(c) is complied with. Whether the High Court in writ jurisdiction should appoint a Court Commissioner to conduct fresh measurement of distance when the inspection report was not challenged earlier and there is no perversity.

Submissions/Arguments

Petitioners: A fresh police report was required to ascertain law and order situation; the site inspection measurement was not properly done, so a Court Commissioner should be appointed as in Vikrama Shama Shetty v. State of Maharashtra. Respondents: The appellate and revisional authorities considered factual materials on record and passed orders in accordance with Rule 45(1)(c); no interference by the High Court is called for.

Ratio Decidendi

Compliance with the mandatory distance requirement under Rule 45(1)(c) of the Bombay Foreign Liquor Rules is sufficient for grant or transfer of FL-III licence; objections based on mere apprehension of law and order without police material and based on political representations are outside the rules and invalid; writ court will not aid a party in collecting evidence by appointing a Court Commissioner when factual findings are based on uncontroverted inspection reports and no perversity is shown.

Judgment Excerpts

Whether our educational institutions are so weak that they would fear that the students would get adversely affected, if there is a restaurant having a liquor licence in the vicinity of their schools, is an issue falling for consideration in this case. Rule 45(1)(c) provides that the distance to be maintained should be upto 75 meters and that the licence be not granted within 75 meters of any educational or religious institution inter-alia the educational institution of the petitioners. The Court would certainly not aid the petitioners in collecting evidence.

Procedural History

Respondent no.3 applied for transfer of FL-III licence from Village Padali Barav Grampanchayat to Junnar Municipal Council. Collector, Pune rejected on 19 November 2019. Respondent no.3 appealed under Section 37(2) of Maharashtra Prohibition Act, 1949; Commissioner of State Excise allowed appeal on 30 March 2021. Petitioners filed revision under Section 138; Principal Secretary (State Excise) dismissed revision on 22 June 2021. Petitioners filed the present writ petition.

Acts & Sections

  • Maharashtra Prohibition Act, 1949: Section 37(2), Section 138
  • Bombay Foreign Liquor Rules: Rule 45(1)(c)
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