Case Note & Summary
The High Court of Karnataka heard a batch of connected writ petitions filed by several CL-9 licence holders, including M/s. High Point Hotels Pvt. Ltd. and others, under Articles 226 and 227 of the Constitution of India. The petitioners challenged demand notices for penalty issued under Rule 14(2) of the Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968, pertaining to short-lifting of liquor from the Karnataka State Beverages Corporation Limited (KSBCL). Rule 14(2) was inserted on 01/04/2003 and omitted on 01/08/2014, and the impugned demands related to the period when the rule was in force. Some petitions also sought writs of mandamus for renewal of their CL-9 licences for the excise year 2017-18. The court noted that the controversy was already covered by an earlier order in W.P.No.10335/2017 (Lakshmi Bar and Restaurant Vs. The State of Karnataka and others) decided on 27/06/2017, but permitted counsels to raise additional grounds. After hearing arguments, the matters were reserved for orders on 25/07/2017 and judgment was pronounced on 18/08/2017. The available text, however, does not contain the final operative part of the judgment and the holding remains undisclosed.
Issue of Consideration
Whether the penalty imposed under Rule 14(2) of the Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968 for short-lifting of liquor is valid and enforceable?
