State Of Kerala & Ors vs Kandath Distilleries

4. We notice, during the year 1998 and prior to that, the Commissioner of Excise and the State Government had received large number of applications for setting up of distillery units in various parts of the State. The Commissioner of Excise or the State could not have entertained all those applications and granted the licences for the setting up of large number of distillery units in the State. The State Government, however, entertained four applications favourably and accorded its approval under Section 14 of the Act. The State Government, vide GO (Rt.) No. 291/98/TD dated 20.5.1998, examined the application submitted by M/s Amrut Distilleries in detail and granted approval for issuing a licence by the Excise Commissioner for the establishment of a distillery unit for the manufacture of IMFLs at Kanjkode village in the Palakkad District. The Government also, vide its order dated 6.8.1998, examined the application of M/s Empee Distilleries, Madras, and accorded approval for the grant of licence by the Excise Commissioner for establishing a distillery unit at Kanjkode village in the Palakad District. The application submitted by M/s K. S. Distilleries, Kannur was also considered by the State Government and granted permission to the Excise Commissioner to issue a licence for a distillery unit to be established at Kannur, vide order dated 18.8.1998. The application of M/s Elite Group of Companies was also favourably considered by the Government and accorded permission to the Excise Commissioner for issuing the necessary licence for establishing a distillery unit at Trichur.

6. We notice that the Excise Commissioner/State Government had received, during the year 1998 and prior to that, large number of applications for licences for establishing distillery units in various districts in the State of Kerala. The Government, therefore, constituted a Scrutiny/Selection Committee to shortlist the applications received for setting up of IMFL Units, as per G.O. (Rt.) No. 157/99/TD dated 3.3.1999. The Government considered the recommendations of the Committee in detail and, vide G.O. (Rt.)/689/99/TD dated 29.9.1999, took a policy decision not to grant any more licences for setting up the distillery units in any part of the State. The order was communicated to the respondent by the Joint Excise Commissioner vide his letter dated 11.11.1999.

From 3.2.1998 to 21.11.1998 Government received 52 applications for establishing compounding, blending and bottling units of Indian made foreign liquor. The Excise Commissioner as per letter No. XC3- 15555/98 dated 25.11.1998 reported that there was an unprecedented flow of application and the Government constituted a scrutiny committee as per GO (Rt) No. 157/99/TD dated 3.3.1999 to shortlist the application. As on 21.11.1998 the date on which the petitioner made the application for compounding blending and bottling licence there were other 52 applications and Government have not considered any one of them. Moreover, the application put in by the partnership firm byname M/s. Kandath Distilleries on 12.1.1987 cannot be treated as an application put in by the firm based on a partnership deed which came into existence on 10.4.1991 as per Clause 3 of the Partnership Deed.

DISCRETION AND DUTY:

MANDAMUS – TO ISSUE LICENCE

DISCRETIONARY ORDER – ARTICLE 14

35. We are, therefore, inclined to allow this appeal and set aside the judgment of the learned single Judge and affirmed by the Division Bench of the High Court. Ordered accordingly. However, in the facts and circumstances of the case, there will be no order as to costs.