TMI Blog2020 (10) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... ess in spite of paying the amount of ₹ 3 lakhs per day to the Department. Interference with a valid license granted in accordance with rules is unwarranted. The First Respondent has misled the High Court by contending that he is willing to offer a higher amount. Such an offer should not have been entertained as he did not participate in the resettlement process. If such petitions are encouraged, there will be no finality to any license or permission granted by the Government, especially when there is no complaint of any malafides, favoritism or nepotism. The Orders of High Court set aside - Appellant shall be permitted to continue with the business activity of running the foreign liquor shop forthwith, subject to compliance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otment Committee for the period from01.04.2020 to 31.03.2021. As the shop was not being operated from 06.05.2020, Sh. Balkar Singh was directed to open the shop. He submitted an application on 12.05.2020 requesting for cancellation of the allotment of the shop. On receipt of the said application, the authorities directed Sh. Balkar Singh to surrender the licence in accordance with the provisions contained in Section 36 of the Excise Act after depositing the amount for first and second instalments along with cancellation charges prescribed for the Month of May, 2020. Balkar Singh did not respond to the letter written by the authorities. The amount deposited by the licensee, Sh. Balkar Singh, was confiscated and the allotment of the foreign l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt resulted in loss of revenue. According to him, the allotment of the foreign liquor shop in favour of the Appellant for ₹ 3,46,78,112/- could not have been made when the total revenue was fixed in the advertisement was ₹ 7,70,62,471/-. By an order dated 06.08.2020, the High Court dismissed the Writ Petition on the ground that the First Respondent did not have locus standi to challenge the allotment of the foreign liquor shop in favour of the Appellant as he did not participate in the process of resettlement of the liquor shop. In the appeal preferred by the First Respondent against the judgment of the learned Single Judge, a Division Bench of the High Court stayed the operation and execution of the settlement of the foreign li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the highest bidder for the allotment of the liquor shop and his offer of ₹ 3,46,78,112/- for the remaining period of the financial year 2020-2021 was accepted. 7. The High Court committed an error in proceeding on the premise that the First Respondent has offered a much higher amount and that the State had wrongly accepted a lesser amount offered by the Appellant. As stated above, the First Respondent did not participate in the resettlement process. The High Court was further convinced with the contention of the First Respondent that the State is suffering a loss of ₹ 5 crores. The Government has brought to the notice of the Division Bench that after re-settlement of the license in favor of the Appellant, the shortfall of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on his behalf before the Division Bench of the High Court. After obtaining instructions, the learned counsel for the First Respondent submitted that he is not willing to deposit ₹ 8 crores, but would be willing to pay something more than the offer made by the Appellant which was accepted. A perusal of the pleadings would show that there is no allegation of malafides on the part of the Government. The only ground on which the High Court interfered with the license is on the basis of the purported loss caused to the revenue. In spite of the Division Bench being informed that there is absolutely no loss to the revenue in view of the recovery proceeding initiated against Sh. Balkar Singh, the interim order was not vacated. As a consequenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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