TMI Blog1996 (11) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... s specified in the auction notification, any person desiring to participate in the auction shall have to pay an amount equivalent to twenty percent of the amount of the licence fee of the preceding excise year. If his bid is accepted, he has to deposit an amount equivalent to 1/6th of the total bid in cash or by bank draft soon after the auction, which amount shall be adjusted against the licence fee payable for the last two months of the excise year. In addition say, has to furnish a bank guarantee or a bank draft or a banker's cheque/order for an amount equal to 1/12th of the total bid amount during the course of the excise year. The appellants say that the respondent-firm deposited 1/9th of bid amount, i.e., ₹ 1,42,00,000/- and took out the licences but failed to furnish the bank guarantee to the extent of 1/12th of the bid amount as required by rules/conditions of auction. The appellants say further that the respondent has also subsequently failed to pay the monthly rental for the month of May 1995. For the aforesaid defaults, they say, notices were given proposing cancellation of licence granted to it. Under this show cause notice, the respondent was called upon to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel for the petitioner has pointed out that in the letter dated 3rd of August, 1995 some sale price has been mentioned. According to him, such course was never adopted earlier. It may be seen that the petitioner is not to deposit any amount now. As such, this amount would also be dealt with at the time when the judgment is pronounced. So far as seized liquor is concerned, if the petitioner deposits the requisite duty, it would be entitled to have the same. This would be again subject to the final decision. Not only it was observed, without giving any reasons, that the licencee-firm is not to deposit any amount now , the authorities were directed to release the seized liquor on payment of 'duty' alone. No reference to nor any direction to the licencee to pay the arrears of licence fee and other amounts due was made. On August 25, 1995, the matter was taken up again in the forenoon. It was ordered that the matter will be taken up after lunch and that till then no further action be taken. After lunch, the learned Judge noticed the contentions of the parties and posted the matter to August 28, 1995. Till then, it was directed that no further action be taken. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eds would be deposited with the State. The State would be at liberty to supervise the source from which the liquor is purchased and also supervise the shops from where liquor is to be sold. Seizure of this liquor would not be effected . The learned Judge made a further curious direction to the following effect: As there is a constant dispute, Shri H.D. Gupta, Advocate, is appointed as Commissioner. In future any grievance of this nature be brought to his notice and he would act as conduit between the State and the petitioner. The State would release liquor on the same terms as being done in the month of April 1995 . The aforesaid Commissioner was to get a fee of ₹ 250/- for every grievance on any single day. The matter was again taken up on September 14, 1995. The learned Judge refers to a statement of the petitioner's counsel that the petitioner would be depositing a sum of Rs. one lac for the purpose of purchasing the liquor and notes his request that he should be given back some amount for re-investment. The learned Judge accordingly directed that the petitioner be given liquor on the day the challan is filled up. 75% of the State proceeds would be deposited wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shops were taken possession of by the department on December 12, 1995 and re-auctioned on December 23, 1995. It is further stated in the letter dated 185th March, 1996 from the Excise Officer, Gwalior to the Deputy Commissioner [Excise], Gwalior Division- a copy o which has been placed before us by the learned counsel for the State- appellant- that as on the date of re-auction, the total amount due from the respondent-firm was in sum of ₹ 2,88,54,431/-. Though the respondent is served, it has neither appeared nor is it represented by counsel. After hearing the learned counsel for the petitioner-State, we called upon the Madhya Pradesh High Court [Gwalior Bench] to sent to this Court the entire records of this writ petition [No. 711 of 1995] which have accordingly been sent. We have perused the same. Leave granted. It has been repeatedly held by this Court that the power of the high Court under Article 226 of the Constitution is not akin to appellate power. It is a supervisory power. While exercising this power, the court does not go into the merits of the decision taken by the authorities concerned but only ensures that the decision is arrived at in accordance with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e principle has been referred to with approval in innumerable decisions of this Court. This decision clearly sets out the limits of the supervisory power under Article 226 of the Constitution and emphasises that the jurisdiction under the said Article is nether unlimited nor unrestrained, much less unguided. A Constitution Bench of this Court held in Har Shankar Ors. v. The Deputy Excise and Taxation Commissioner Ors. [1975 (1) S.C.C. 737] that the writ jurisdiction of High Courts under Article 226 of the Constitution is not intended to facilitate avoidance of obligations voluntarily incurred . Of course, where there is a statutory violation, interference would be permissible even in the case of a contract but not where the relevant facts are disputed and which dispute calls for an elaborate enquiry which cannot be conveniently done by the High Court in a writ petition. A perusal of the orders extracted hereinabove show that the learned Single Judge- it appears that almost all the orders are made by the same learned Judge [T.S. Doabia, J.]- has not kept in view any of the norms governing the exercise of writ jurisdiction of the High Court. The relevant facts were serious ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
