Case Note & Summary
The State of Karnataka filed a writ appeal under Section 4 of the Karnataka High Court Act, 1961 against an ad interim order dated 25.11.2025 passed by a learned Single Judge in WP.No.35227/2025 (Excise). The writ petitioners (respondents) were CL‑9 licence holders under the Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968. They challenged the Karnataka Excise (Sale of Indian and Foreign Liquors) (Second Amendment) Rules, 2025, which amended Rules 5, 5‑A and 12 of the 1968 Rules, alleging these amendments were illegal, arbitrary, unconstitutional and ultra vires the Karnataka Excise Act, 1965. The amendments introduced e‑auction for certain licences, new definitions, and altered the grant and renewal of CL‑9 licences. The Single Judge stayed the operation, implementation and enforcement of amended Rules 5 and 5‑A pending further hearing. The State, represented by the Advocate General, contended that the stay was unwarranted. The appeal was heard and reserved on an unspecified date, and judgment was pronounced on 15.04.2026. The available text sets out the impugned amendments but does not include the court’s analysis or final decision.
Headnote
A) Administrative Law - Excise Regulations - Interim Stay - Rule 5, 5-A Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968 - The State appealed an ad interim order dated 25.11.2025 passed by a Single Judge in WP.No.35227/2025 staying the operation of amended Rules 5 and 5-A, which introduced e‑auction and new licence forms for CL‑9 licences - The Court examined the challenge to the interim stay and the amended rules’ validity (Paras 1‑3).
Issue of Consideration
Whether the learned Single Judge was justified in staying the operation, implementation and enforcement of the amended Rules 5 and 5-A of the Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968, introduced by the Karnataka Excise (Sale of Indian and Foreign Liquors) (Second Amendment) Rules, 2025?
Case Details
2026 LawText (KAR) (04) 12
WRIT APPEAL NO. 541 OF 2026 (EXCISE)
Vibhu Bakhru, C.M. Poonacha
Shashi Kiran Shetty K., Prathima Honnapura, Namitha Mahesh B.G., Adoorya Harish, D.R. Ravishankar, Mohan Mahabaleshwara Bhat
The State of Karnataka & The Commissioner of Excise in Karnataka
Sri Guruswamy, Sri B. Govindaraj Hegde, Sri H.M. Nasir Hussain, Sri C.M. Gowda, Smt. Vishrutha Shetty
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Nature of Litigation
Writ appeal against an interim order staying the implementation of amended excise rules regulating bar licences.
Remedy Sought
The State (appellants) sought to set aside the ad interim order dated 25.11.2025 passed by the learned Single Judge in WP.No.35227/2025 (Excise).
Filing Reason
The Single Judge had stayed the operation, implementation and enforcement of amended Rules 5 and 5-A of the Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968, introduced by the Second Amendment Rules, 2025, which the State contended was unwarranted.
Previous Decisions
The learned Single Judge passed an ad interim order dated 25.11.2025 staying the amended rules, pending further hearing.
Issues
Whether the interim order staying the operation of the amended excise rules was valid and justified.
Judgment Excerpts
The State has filed the present appeal impugning an ad interim order dated 25.11.2025 passed by the learned Single Judge of this Court in WP.No.35227/2025 (EXCISE).
By the impugned order, the learned Single Judge has stayed the operation, implementation and enforcement of the amended Rules 5 and 5-A of the rules.
The respondents (writ petitioners) had sought a declaration that the impugned Rules, which were published in the Gazette on 03.11.2025, are illegal, unreasonable, arbitrary, unconstitutional and ultra vires of the Karnataka Excise Act, 1965.
Procedural History
The respondents (writ petitioners) were holders of CL-9 licences under the Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968. Some had discontinued licences and sought renewal, which was rejected. They filed WP.No.35227/2025 challenging the Karnataka Excise (Sale of Indian and Foreign Liquors) (Second Amendment) Rules, 2025. On 25.11.2025, a Single Judge passed an ad interim order staying the operation of amended Rules 5 and 5-A. The State appealed under Section 4 of the Karnataka High Court Act, 1961. The appeal was heard and reserved for judgment, and was pronounced on 15.04.2026.
Acts & Sections
- Karnataka High Court Act, 1961: Section 4
- Karnataka Excise Act, 1965:
- Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968: Rule 2(i), Rule 2(ii), Rule 3, Rule 5, Rule 5-A, Rule 12
- Karnataka Excise (Sale of Indian and Foreign Liquors) (Second Amendment) Rules, 2025: Rule 2, Rule 3
- Karnataka Excise (General Conditions of Licences) Rules, 1967: Rule 5(4), Rule 17A
- Karnataka Excise (Lease of the Right of Retail Vend of Beer) Rules, 1976: Rule 5
