IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN FRIDAY, THE 14TH OCTOBER 2011 / 22ND ASWINA 1933 WA.No. 1524 OF 2011() --------------------- AGAINST THE ORDER IN I.A. 14267/2011 IN WPC.16240/2011 Dated 28/09/2011 .................... APPELLANT/RESPONDENTS 1 TO 5:: 1. STATE OF KERALA, REPRESENTED BY THE SECRETARY, TAXES (A) DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. THE EXCISE COMMISSIONER, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM. 3. THE DEPUTY COMMISSIONER OF EXCISE, ERNAKULAM. 4. THE CIRCLE INSPECTOR OF EXCISE, ERNAKULAM. 5. THE JOINT COMMISSIONER OF EXCISE, CENTRAL ZONE, COCHIN- 25. BY GOVERNMENT PLEADERSRI. GEORGE MECHERIL. SRI. C.C. THOMAS (SR.) RESPONDENTS/PETITIONER & ADDL. RESPONDENTS 6 & 7:: 1. M/S. COCHIN WINES & DRUGS, POONAM RESIDENCY, MATHAI – MANJOORAN ROAD, COCHIN – 18, REP. BY ITS MANAGING PARTNER, LAZAR CHAKKOLA. 2. GEORGE PUTHOKARAN, S/O. JOSE PUTHOKARAN, PUTHOKARAN HOUSE, I.S. PRESS ROAD, ERNAKULAM, NOW RESIDING AT 12TH FLOOR, R.D.S. FLATS, NEAR PASSPORT OFFICE, PANAMPILLY NAGAR, COCHIN – 36. 3. CYRIAC IYPE, S/O. P.C. IYPE, PUTHERICKAL HOUSE, MARKET ROAD, COCHIN – 35, NOW RESIDING AT ST. FRANCIS XAVIER'S CHURCH CROSS ROAD, (WEST), COCHIN – 682 018. THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 14/10/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.A. 1524/2011 APPENDIX ANNEXURES: ANNEXURE -1 A TRUE COPY OF THE PARTNERSHIP DEED DATED 10.10.2006. ANNEXURE II: A TRUE COPY OF THE JUDGMENT IN W.P.(C) NO. 29815/2007. // TRUE COPY // P.S. TO JUDGE. KNC/- C.N. RAMACHANDRAN NAIR Ag. C.J.& P.S. GOPINATHAN, J. = = = = = = = = = = = = = = = = = = W.A. NO. 1524 OF 2011 = = = = = = = = = = = = = = = = = = DATED THIS, THE 14TH DAY OF OCTOBER, 2011. J U D G M E N T C.N. Ramachandran Nair, Ag. C.J. Heard the Government Pleader. The order under challenge is an interim order issued by the learned Single Judge to renew the bar licence for the remaining period of the financial year 2011-2012. Admittedly, the first respondent's firm was holding a bar licence for the last twenty years. Department also concedes the fact that licence issued to the first respondent was in the personal names of two joint managing partners. One of them is still continuing as a managing partner of the first respondent and the remaining, along with some others retired under the retirement-cum-re- constitution deed of 10.10.2006. Simultaneously with the retirement of some of the partners, a few new partners are inducted, with which one of the original joint licensee carries on business under the re-constituted deed dated 10.10.2006. The question that arises for consideration is whether the retirement of some of the partners and re-constitution with one of the managing partners who was a joint licensee, disentitles the first respondent W.A. 1524/2011 2 for renewal of the licence. 2. The business, admittedly, was carried on with the licence issued up to 31.3.2011. Learned Single Judge prima facie found justification for renewal of the licence to the first respondent and accordingly, the same was granted. Before us, Government Pleader submitted that re-constitution is not approved by the Excise Commissioner and therefore, renewal cannot be granted. The senior counsel appearing for the first respondent however, raised an alternate plea that as per the new policy, re-constitution can be regularised on the firm paying Rs. 20,00,000/- (Twenty lakhs) for retiring partners. Going by this formula, the total amount payable for regularization of transfer of licence is Rs. 56,00,000/- (Fifty six lakhs) besides the licence fee payable. We think the Excise Commissioner can be directed to renew the licence pending disposal of the writ petition on the first respondent remitting Rs. 56,00,000/- (fifty six lakhs) under the new policy and along with it the renewal fee of Rs.22,00,000/- (twenty two lakhs). Accordingly, we allow the writ appeal filed by the State in part by modifying the interim order of the learned Single Judge directing Excise Commissioner to renew licence on payment of licence fee of Rs. 22 lakhs along with additional amount of Rs. 56 lakhs as stated above. Licence will be renewed up to 31.3.2012 immediately on payment as above. The Excise authorities will W.A. 1524/2011 3 file counter affidavit in the writ petition by specifically dealing with the eligibility for renewal/transfer of licence to the re-constituted firm on payment as above, in accordance with the new policy. C.N. RAMACHANDRAN NAIR, (Ag. CHIEF JUSTICE) P.S. GOPINATHAN, (JUDGE) KNC/-