{"id":7585,"date":"1987-09-22T00:00:00","date_gmt":"1987-09-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/chhotu-singh-vs-state-of-maharashtra-ors-on-22-september-1987"},"modified":"2015-07-26T12:29:25","modified_gmt":"2015-07-26T06:59:25","slug":"chhotu-singh-vs-state-of-maharashtra-ors-on-22-september-1987","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/chhotu-singh-vs-state-of-maharashtra-ors-on-22-september-1987","title":{"rendered":"Chhotu Singh vs State Of Maharashtra &amp; Ors on 22 September, 1987"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Chhotu Singh vs State Of Maharashtra &amp; Ors on 22 September, 1987<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1987 AIR 2200, \t\t  1988 SCR  (1) 303<\/div>\n<div class=\"doc_author\">Author: B Ray<\/div>\n<div class=\"doc_bench\">Bench: Ray, B.C. (J)<\/div>\n<pre>           PETITIONER:\nCHHOTU SINGH\n\n\tVs.\n\nRESPONDENT:\nSTATE OF MAHARASHTRA &amp; ORS.\n\nDATE OF JUDGMENT22\/09\/1987\n\nBENCH:\nRAY, B.C. (J)\nBENCH:\nRAY, B.C. (J)\nSEN, A.P. (J)\n\nCITATION:\n 1987 AIR 2200\t\t  1988 SCR  (1) 303\n 1987 SCC  (4) 533\t  JT 1987 (3)\t661\n 1987 SCALE  (2)653\n\n\nACT:\n     Permission granted\t by State  Government  for  shifting\ncountry liquor\tshop from  the\tvillage\t to  another-Whether\narbitrary or in breach of guidelines contained in Government\nCirculars on  the subject-High\tCourt quashed the Government\norder granting permission.\n\n\n\nHEADNOTE:\n     The appellant  Chhotu Singh,  who had been granted C.L.\nIII licence  for vending  country liquor  in Village  Sawli,\napplied for permission to shift his liquor shop from Village\nSawli to  Village Narsi\t Chaurasta as  there was very little\ndemand for  country liquor in Sawli with a small population.\nThe Collector  recommended the\ttransfer of  the shop of the\nappellant after\t making due  enquiries contemplated  in\t the\nguidelines laid\t down in the government circular dated April\n27, 1984  for shifting\tshops. The  State Government granted\nthe permission applied for by the appellant.\n     Upon  the\tappellant's  shop  being  shifted  to  Narsi\nChaurasta, the\trespondent No. S in the appeals, who already\nhad a  liquor shop  in Narsi Chaurasta, challenged by a Writ\nPetition the  permission granted  by the  Government to\t the\nappellant to  shift his\t liquor shop to Narsi Chaurasta. The\nHigh Court  allowed the Writ Petition, quashing the order of\nthe Government\tgranting permission  for shifting the liquor\nshop, on  the ground  that  the\t said  permission  had\tbeen\ngranted without\t the criteria  laid down  in the  Government\ncircular dated March 18,1982 being duly considered. A review\npetition against  the order  of the High Court, allowing the\nWrit Petition, was dismissed.\n     The appellant  Chhotu Singh  has  moved  the  Court  by\nspecial leave against the orders of the High Court, allowing\nthe Writ Petition and dismissing the review application, and\nthe only question for consideration in the matter is whether\nthe permission\tgranted by the State Government for shifting\nthe appellant's\t C.L. III  liquor shop from Village Sawli to\nVillage Narsi  Chaurasta is supported by the guidelines laid\ndown in\t the latest government circular dated April 27,1984,\nwhich has superseded all the previous such circulars.\n     Allowing the appeals, the Court,\n304\n^\n     HELD: The\tCollector  had\trecommended  permission\t for\nshifting the liquor shop of the appellant from Village Sawli\nto Village  Narsi Chaurasta after making due enquiries, with\nregard to  the shifting of the said shop, in accordance with\nthe guidelines\tcontained in  the latest government circular\non the\tsubject, dated\tApril 27, 1984, which had superseded\nthe guidelines\tin the previous such circulars. The sanction\naccorded to  the shifting  of the appellant's shop is not in\nbreach of  the said latest circular dated April 27, 1984 and\nit cannot be assailed as arbitrary. [306G, B; 307E, B-C]\n\n\n\nJUDGMENT:\n<\/pre>\n<p>     CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 2331 32<br \/>\nof 1987.\n<\/p>\n<p>     From the  Judgment and  order  dated,  .4.1986  of\t the<br \/>\nBombay High Court in Review Petition No. 837 of 1986.\n<\/p>\n<p>     Dr. Y.S. Chitale and Ranjit Kumar for the Appellant.<br \/>\n     T.S.  Krishnamoorthy   Iyer,   D.M.   Nargolkar,\tA.M.<br \/>\nKhanwilkar and A.S. Bhasme for the Respondents.\n<\/p>\n<p>     The Judgment of the Court was delivered by<br \/>\n     B.C. RAY, J. Special leave granted. Arguments heard.<br \/>\n     The subject  matter of  challenge in this appeal is the<br \/>\norder dated 7th April, 1986 made by the High Court of Bombay<br \/>\nallowing the  writ petition  No. 189  of 1986  quashing\t the<br \/>\npermission granted  in\tfavour\tof  the\t petitioner  by\t the<br \/>\nGovernment by  its order  dated\t 24.12.1985  permitting\t the<br \/>\nshifting of  the country  liquor shop  from Mouza  Sawli  to<br \/>\nMouza Narsi Chaurasta as well as the order of the High Court<br \/>\ndated 17.7.1986\t rejecting the\treview petition\t No. 837  of<br \/>\n1986. The  petitioner&#8217;s father\thad a  licence\tto  run\t the<br \/>\ncountry liquor\tshop in\t village  Narsi\t in  Taluka  Biloli,<br \/>\nDistrict Nanded,  Maharashtra. In  1983 the said licence was<br \/>\ntransferred in\tthe name of the petitioner (respondent No. 5<br \/>\nin this\t appeal).  The\tappellant  was\tgranted\t a  licence,<br \/>\ncommonly known\tas C.L.\t III  licence  for  vending  country<br \/>\nliquor in village, Sawli, Taluka Biloli, District Nanded. In<br \/>\nNovember, 1984,\t the appellant\twas permitted  to  join\t one<br \/>\nAtaullah as  his partner to run the said country liquor shop<br \/>\nin  village   Sawli.  The   appellant\tfound\tconsiderable<br \/>\ndifficulty in running the shop in village Sawli as there was<br \/>\nvery little  demand for\t country liquor\t in the said village<br \/>\nhaving small  population of  about  1800  and  as  such\t the<br \/>\nappellant sustained heavy loss. The appellant therefore<br \/>\n<span class=\"hidden_text\">305<\/span><br \/>\napplied on  2.2.1985 before  the District  Collector, Nanded<br \/>\nfor permission\tto shift  his shop  from  village  Sawli  to<br \/>\nvillage Narsi Chaurasta situated within the same Taluka. The<br \/>\nCollector of  Nanded after  making  necessary  enquiries  in<br \/>\naccordance  with   the\tguidelines  of\tthe  circular  dated<br \/>\n27.4.1984 regarding  the shifting  of the shops, recommended<br \/>\nthe transfer of the shop of the appellant from village Sawli<br \/>\nto village  Narsi Chaurasta.  The Government of Maharashtra,<br \/>\nhowever, by  order dated  25.7.1985 rejected the application<br \/>\nof the\tappellant for shifting the shop. The appellant again<br \/>\nmade a\trepresentation against\tthe said order of rejection.<br \/>\nThis representation  was duly  considered by  the Government<br \/>\nand permission\twas granted to the appellant to transfer his<br \/>\ncountry liquor\tshop C.L.  IIl from village Sawli to village<br \/>\nNarsi Chaurasta.  In accordance\t with  the  said  permission<br \/>\ngranted to  the appellant, the appellant shifted his shop on<br \/>\n17.2.1986 to  village Narsi  Chaurasta. The respondent No. 5<br \/>\nwho  has   got\ta  country  liquor  shop  in  that  village,<br \/>\nquestioned the\tpermission granted  by\tthe  Governmment  in<br \/>\nfavour of the appellant by writ petition No. 189 of 1986 and<br \/>\nprayed for quashing of the said order granting permission on<br \/>\nthe ground  that there\thas been a violation of the circular<br \/>\nNo. CLR.  1173(III) Gen\/K  dated 27th  February, 1973  in as<br \/>\nmuch as\t the total  population of  the said  village did not<br \/>\nexceed l00,000\tand as\tsuch the permission for shifting the<br \/>\nsaid shop  of the  appellant to\t the village Narsi Chaurasta<br \/>\nwas illegal and bad.\n<\/p>\n<p>     The writ  petition No.  189\/86 was\t heard by  the\tHigh<br \/>\nCourt, Bombay  and it  was allowed  by holding\tthat without<br \/>\nduly considering  the criteria\tlaid down  in  the  circular<br \/>\ndated 18.3.1982 i.e. economic viability of the proposed shop<br \/>\nand the\t likely volume of consumption of country liquor, the<br \/>\npurported permission  for shifting  the\t shop  was  granted.<br \/>\nAccordingly, the  rule\twas  made  absolute  and  the  order<br \/>\ngranting  permission  by  the  Government  was\tquashed.  An<br \/>\napplication for\t review of  the said  order was filed by the<br \/>\nappellant and  the same was rejected by order dated July 17,<br \/>\n1986 in\t Review Petition  No. 837  of 1986. Aggrieved by the<br \/>\nsaid two  orders the special leave petition was filed out of<br \/>\nwhich this appeal has arisen.\n<\/p>\n<p>     The only  question that falls for consideration in this<br \/>\nappeal is  whether the\tpermission granted  by the  State of<br \/>\nMaharashtra i.e.  Respondent No.  1 for shifting of C.L. IIl<br \/>\nliquor shop  of the  appellant from village Sawli to village<br \/>\nNarsi Chaurasta\t is in\taccordance with\t the guidelines laid<br \/>\ndown by\t the latest circular dated 27th April, 1984 which is<br \/>\nannexed as annexure P-7 to this appeal. It has been urged on<br \/>\nbehalf of  respondent No.  5 by\t drawing the  notice of\t the<br \/>\nCourt to the circular<br \/>\n<span class=\"hidden_text\">306<\/span><br \/>\ndated 27.2.1973\t (annexure P-2) that the permission that was<br \/>\naccorded for  shifting of  the appellant&#8217;s  shop from  Mouza<br \/>\nSawli to  Mouza Narsi  is in  infringement of  the aforesaid<br \/>\ncircular in  as much  as the total population of Mouza Narsi<br \/>\ndid not\t exceed l0,000\tand as such no additional shop could<br \/>\nbe permitted  in the  said Mouza nor any permission could be<br \/>\naccorded for  shifting of the appellant&#8217;s liquor shop in the<br \/>\nsaid Mouza.  This argument  advanced on behalf of respondent<br \/>\nNo. 5  is devoid  of merit  in\tas  much  as  the  aforesaid<br \/>\ncircular was  superseded by  the guidelines laid down by the<br \/>\nGovernment  as\t is  evident   from  the   order   No.\t CLR<br \/>\n1480\/1101\/PRO-3 dated  2nd October, 1980 wherein it has been<br \/>\nstated in  clauses 4  and S  that permission  for additional<br \/>\nshop can be granted only if it would be economically viable.<br \/>\nIt is  also evident  from the  circular dated March 18, 1982<br \/>\nthat rules  23 and  24 of  the\tMaharashtra  Country  Liquor<br \/>\nRules, 1973  were amended  by Government  Notification dated<br \/>\n26th February,\t1982 and  guidelines have been laid down for<br \/>\ngrant of  a licence for shops for the retail sale of country<br \/>\nliquor. One  of the  guidelines to be considered is that due<br \/>\nconsideration has  to be  given\t to  the  likely  volume  of<br \/>\nconsumption of\tcountry liquor and economic viability of the<br \/>\nproposed shop before granting any permission for a new shop.<br \/>\nThis  circular\t was  followed\tby  another  circular  dated<br \/>\nSeptember 16,  1983 wherein  it has  been mentioned  that in<br \/>\ngranting additional  licences for  country liquor  shop, the<br \/>\nCollector should  use the  discretion and  propose shops  at<br \/>\nsuch places  taking into  consideration the likely volume of<br \/>\nconsumption,   economic\t  viability,   menace\tof   illicit<br \/>\ndistillation etc.  This circular  is annexed as annexure P-5<br \/>\nto the\tappeal. By  the latest circular dated April 27, 1984<br \/>\nthe Government\tin supersession\t of the\t guidelines  in\t the<br \/>\nprevious circulars had laid down certain guidelines of which<br \/>\nclause 6  is relevant  for our consideration which is to the<br \/>\nfollowing effect:\n<\/p>\n<blockquote><p>\t  &#8220;Whether additional shop at the new place would be<br \/>\n\t  economically feasible.&#8221;<\/p><\/blockquote>\n<p>     In the  instant case  the District\t Collector of Nanded<br \/>\nmade  due   enquiries  in  accordance  with  the  guidelines<br \/>\ncontained in  circular dated April 27, 1984 (annexure P-7 to<br \/>\nthis appeal)  with regard  to the shifting of country liquor<br \/>\nshop of\t the appellant\tand recommended\t the permission\t for<br \/>\nshifting the shop stating that the population of Mouza Narsi<br \/>\nis about  3738 and  it is a commercial place. There is a lot<br \/>\nof crowd  of people at this place and as such if the country<br \/>\nliquor shop  is shifted\t from Mouza Sawli to Mouza Narsi the<br \/>\nfinancial condition  of\t the  licence-holder  would  improve<br \/>\nresulting in his being able to pay the licence fee and incur<br \/>\nthe other expenses of the shop. It has been<br \/>\n<span class=\"hidden_text\">307<\/span><br \/>\nfurther stated\tthat the  sale of  country liquor  at  Mouza<br \/>\nNarsi is  1300 litres  and starting  of another shop at this<br \/>\nplace  is   feasible.  This  report  was  forwarded  to\t the<br \/>\nSecretary, Home\t Department, Government\t of  Maharashtra,  a<br \/>\ncopy of\t which\tis  annexed  as\t P-1  to  this\tappeal.\t The<br \/>\nGovernment of Maharashtra had first rejected the application<br \/>\nof the\tappellant for  the shifting of the shop on 25.7.1985<br \/>\nand on\trepresentation being  made by  the appellant had re-<br \/>\nconsidered its earlier decision and accorded sanction to the<br \/>\nproposal of shifting of country liquor shop of the appellant<br \/>\nfrom  village  Sawli  to  village  Narsi  Chaurasta,  Taluka<br \/>\nBiloli. This  order according  permission cannot be assailed<br \/>\nas arbitraty  or in  breach of the latest circular issued by<br \/>\nthe Government\tlaying down  the  guidelines  in  1984.\t The<br \/>\nGovernment duly\t considered the\t guidelines laid down in the<br \/>\nsaid circular  namely the  economic viability  and also\t the<br \/>\nvolume of  consumption of  liquor in the particular Mouza as<br \/>\nis evident  from the  report of the Collector, Nanded. It is<br \/>\nalso pertinent\tto mention in this connection that the State<br \/>\nof Maharashtra,\t respondent No.\t 1 filed  a return  to\tthis<br \/>\nappeal wherefrom  it is\t manifest that\tthe respondent No. 1<br \/>\nduly considered\t the report  of the  Collector\trecommending<br \/>\npermission to  transfer\t the  country  liquor  shop  of\t the<br \/>\nappellant. It has also been stated in. the said counter that<br \/>\nthe guidelines\tcontained in the circular dated February 27,<br \/>\n1973 are  in respect  of the  grant of\tnew  country  liquor<br \/>\nlicence. These\tguidelines  cannot  be\tmade  applicable  in<br \/>\nrespect of  the shifting of any country liquor shop existing<br \/>\nalready in  one village\t to another  village. It has further<br \/>\nbeen stated  that  after  the  permission  was\tgranted\t the<br \/>\nappellant shifted  his country\tliquor shop to village Narsi<br \/>\nChaurasta and  he has  been running  the country liquor shop<br \/>\nthere since  February, 1986.  The sanction  accorded to\t the<br \/>\nshifting of  the shop  of the  appellant is not in breach of<br \/>\nthe latest  circular dated  April 27, 1984 annexed as P-7 to<br \/>\nthis appeal.\n<\/p>\n<p>     For the  reasons aforesaid\t there is  no merit  in\t the<br \/>\nsubmissions made  on behalf of respondent No. S and the same<br \/>\ncannot be  sustained. The appeals are therefore allowed. The<br \/>\nimpugned judgment  and order  passed by\t the High  Court  of<br \/>\nBombay dated  April 7,\t1986 in\t Writ Petition No. 189\/86 as<br \/>\nwell as\t the order  dated  July\t 17,  1986  made  in  Review<br \/>\nPetition No.  837\/86 are  quashed and set aside. There will,<br \/>\nhowever, be no orders as to costs.\n<\/p>\n<pre>S.L.\t\t\t\t\t Appeals allowed.\n<span class=\"hidden_text\">308<\/span>\n\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Chhotu Singh vs State Of Maharashtra &amp; Ors on 22 September, 1987 Equivalent citations: 1987 AIR 2200, 1988 SCR (1) 303 Author: B Ray Bench: Ray, B.C. (J) PETITIONER: CHHOTU SINGH Vs. RESPONDENT: STATE OF MAHARASHTRA &amp; ORS. DATE OF JUDGMENT22\/09\/1987 BENCH: RAY, B.C. (J) BENCH: RAY, B.C. (J) SEN, A.P. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-7585","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chhotu Singh vs State Of Maharashtra &amp; Ors on 22 September, 1987 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/chhotu-singh-vs-state-of-maharashtra-ors-on-22-september-1987\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chhotu Singh vs State Of Maharashtra &amp; 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