Case Note & Summary
The petitioner, Parbhani Jilla Daru Vikreta Sanghatana, an association of liquor retailers in Parbhani district, challenged an order dated 18-09-2017 passed by the District Collector, Parbhani, directing that all liquor shops in the district shall be closed by 9:00 p.m. instead of the usual 10:30 p.m. The order was purportedly issued to maintain law and order. The petitioner contended that the order was arbitrary, without authority of law, and violated their fundamental right to carry on trade under Article 19(1)(g) of the Constitution. The respondents argued that the Collector had powers under the Maharashtra Prohibition Act, 1949 and the Bombay Foreign Liquor Rules, 1953 to issue such directions in the interest of public order. The court examined the relevant provisions and found that Rule 7 of the Bombay Foreign Liquor Rules, 1953 prescribes the hours of sale as 10:00 a.m. to 10:30 p.m., and any change can only be made by the State Government, not by the Collector. The court held that the Collector's order was without any statutory backing and was an unreasonable restriction on the right to trade. Applying the doctrine of proportionality, the court found that the reduction of business hours by 1.5 hours was not justified by any material showing a threat to law and order. The court quashed the order and directed the respondents to allow liquor shops to remain open until 10:30 p.m. as per the rules. The petition was allowed with no order as to costs.
Headnote
A) Constitutional Law - Fundamental Rights - Right to Trade - Article 19(1)(g) of the Constitution of India - The right to carry on trade in liquor is a fundamental right under Article 19(1)(g), subject to reasonable restrictions under Article 19(6). The court held that the order reducing business hours from 10:30 p.m. to 9:00 p.m. was arbitrary and disproportionate, as it was not based on any statutory rule or regulation and lacked justification. (Paras 5-8) B) Excise Law - Delegated Legislation - Executive Orders - Maharashtra Prohibition Act, 1949 and Bombay Foreign Liquor Rules, 1953 - The District Collector's order was not traceable to any provision of the Act or Rules. The court held that the power to regulate hours of sale is vested in the State Government under Rule 7 of the Bombay Foreign Liquor Rules, 1953, and cannot be exercised by the Collector without delegation. The order was ultra vires. (Paras 6-9) C) Administrative Law - Doctrine of Proportionality - Reasonable Restrictions - The court applied the doctrine of proportionality and found that the reduction of business hours by 1.5 hours was not proportionate to any alleged law and order problem. The order was set aside as it infringed the fundamental right to trade without any reasonable basis. (Paras 7-9)
Issue of Consideration
Whether the District Collector's order directing closure of liquor shops by 9:00 p.m. instead of the permitted 10:30 p.m. is valid and within the scope of delegated powers under the Maharashtra Prohibition Act, 1949 and the Bombay Foreign Liquor Rules, 1953, and whether it violates the fundamental right to trade under Article 19(1)(g) of the Constitution.
Final Decision
The court allowed the writ petition, quashed the order dated 18-09-2017 passed by the District Collector, Parbhani, and directed the respondents to permit liquor shops to remain open until 10:30 p.m. as per the Bombay Foreign Liquor Rules, 1953. No order as to costs.
Law Points
- Fundamental right to trade under Article 19(1)(g) of the Constitution
- Reasonable restrictions under Article 19(6)
- Delegated legislation and executive orders
- Doctrine of proportionality
- Maharashtra Prohibition Act
- 1949
- Bombay Foreign Liquor Rules
- 1953
