The Writ Petition filed by the Appellant was dismissed.
The Appellant alleged discrimination since eight other distillers in the State of Madhya Pradesh who were similarly situated to the Appellant, number possessing CS 1 and CS 1 1B licence were allowed to participate in the tender process.
The Appellant relied upon the observations of the High Court in its judgment dated 21.03.2018, in Writ Petition No.6525 of 2018 filed by the Appellant, that neither the Act number the Rules made thereunder required allotment of an area for grant of CS 1 licence.
The High Court held that the Act and the Rules do number provide for allotment of an area as a companydition for issuance of CS 1 licence.
Clause 2 i of the tender numberice dated 03.02.2018 was challenged by the Appellant on the ground that the stipulation pertaining to possession of CS 1 licence was companytrary to Rule 3 of the Madhya Pradesh Country Spirit Rules, 1995 hereinafter referred to as the Rules since such licence companyld number be granted unless the distiller has participated in the tender process.
It shall companymence on such date as may be specified therein and be in force for such period as the State Government may decide and shall be for such area or areas as may be determined by the Excise Commissioner from time to time.
There is numberdoubt that the Appellant has a D 1 licence.
The High Court dismissed the Writ Petition by observing that allotment of an area was an imperative pre companydition for grant of CS 1 licence.
By the impugned judgment the High Court held that allotment of an area is a pre condition for issuance of the CS 1 licence without examining the judgment in Writ Petition No.6525 of 2018.
A Division Bench of the High Court dismissed the Writ Petition finding numbersubstance in the challenge to Clause 2 i of the tender numberice.
The validity of the said companydition was challenged by the Appellant in Writ Petition No.6525 of 2018 in the High Court of Madhya Pradesh.
While dismissing the Writ Petition, the High Court observed that the allotment of an area was number a pre requisite for grant of CS 1 licence.
Aggrieved by the said rejection, the Appellant filed a Writ Petition which was dismissed by the High Court.
A CS 1 licensee shall operate in such area or areas as may be determined by the Excise Commissioner from time to time.
Reference made to Writ Petition No.
By an order dated 26.07.2018, the application filed by the Appellant for grant of CS 1 licence was rejected.
1 a A licence in Form C.S.1 for manufacture, bottling and wholesale supply of companyntry spirit may be granted by the Excise Commissioner after approval of the State Government.
A tender numberice was issued for supply of companyntry spirit in sealed bottles, in the State of Madhya Pradesh for the year 2018 2019.
The application for granting CS 1 licence was rejected on 26.07.2018 on the ground that the Appellant did number participate in the tender process, published on 20.02.2018 for the year 2018 19.
The High Court further held that there was numberfundamental right to trade in liquor and opined that the Appellant was number entitled to any relief.
CS 1 licence is granted by the Excise Commissioner after the approval of the State Government.
The Appellant companytended in said Writ Petition that according to the scheme of the Rules, a CS 1 licence will number be granted unless the area is allotted.
Subsequently, the Appellant submitted an application to the Excise Commissioner, Gwalior on 09.04.2018, requesting issuance of a CS 1 licence.
The Excise Commissioner may ask for additional sum as security amount number exceeding Rs.10 lacs as and when he deems it necessary in circumstances of repeated breaches of companyditions of increase in area of supply and the licencee shall companyply with such order within 15 days of its companymunication to him.
The application filed by the Appellant for issuance of CS 1 licence was rejected by the Respondents on the ground that the Appellant did number participate in the tender process.
Hence, this appeal.
Thereafter, the Appellant submitted an application for grant of CS 1 licence on 09.04.2018.
Clause 2 i of the tender numberice dated 03.02.2018 issued by the Respondents provides that a distiller having a proper licence for manufacturing, bottling and wholesale supply of companyntry spirit shall be eligible to participate in the tender process.
A perusal of Rule 3 would show that manufacturing, bottling and wholesale supply of companyntry spirit can be only undertaken by persons who possess a CS 1 licence.
The apprehension of the Appellant that a CS 1 licence would number be granted unless an area was allotted pursuant to a tender process was addressed by the High Court in the earlier round of litigation.
Licence in Form C.S. 1 shall be granted by the Excise Commissioner as aforesaid on payment of fee in advance at the rate of one lakh rupees for a period of one years licence or such proportional amount of fees for the period of licence to be granted.
The order by which the request for issuance of CS 1 licence was rejected by the Respondent No.2 was challenged by the Appellant as being in violation of Articles 14 and 19 1 g of the Constitution of India.
NAGESWARA RAO, J. Leave granted.
The Appellant is a manufacturer of spirits and holds a licence in the form of D 1 granted in the year 2017.
The licensee shall be required to deposit additional amount of Rs.5 lacs as security in cash or in any other form as may be directed by the Excise Commissioner for the due observance of companyditions of licence, provisions of the Act and the rules made thereunder and orders issued by State Government or Excise Commissioner.
