WP/21082/2006 of Ganta Rama Rao, Vs The Commissioenr for Prohibition and Excise, on 28 December 2006

O R D E R:

This writ petition is filed aggrieved by the action of therespondents 1 to 4 in proposing to grant Form 2-B licence forestablishment of Bar and Restaurant in Rajam Nagar Panchayat,Srikakulam for the excise year 2006-2007.

The facts, in brief, are as under:

The 3[rd] respondent-District Collector, Srikakulam issued noticeof auction dated 27-05-2006 for grant of lease of right to sell IndianMade Foreign Liquor by shop under Rule 5 of the Andhra PradeshExcise (Lease of Right of Selling by Shop and Conditions of Licence)Rules, 2005 (for short ‘the Rules’). Altogether 232 shops were notifiedin Srikakulam Revenue District including 16 shops in Rajam Mandal.The petitioners herein being the highest bidders in respect of theshops in Rajam Mandal were granted licences in Form A-4 for therespective shops and they have been carrying on business.

While so, it appears that the 6[th] respondent herein made anapplication for grant of licence in Form 2-B for establishment of a Barand Restaurant in Rajam Nagar Panchayat and the same was beingprocessed by the respondents 1 to 4. Aggrieved by the said action,this writ petition has been filed.

It is to be noted that under Rule 4 of the Andhra Pradesh Excise(Grant of Licence of Selling by Bar and Conditions of Licence) Rules,2005 (for short ‘Bar Rules’), the licence in Form 2-B for establishmentof a Bar and Restaurant may be granted only in Municipalities andwithin a belt area of 2 Kms. of periphery of such Municipalities. Such licence can also be granted in Municipal Corporations and within abelt area of 5 kms. of the periphery of such Municipal Corporations andin Tourism Centers as notified by the Department of Tourism of theState Government or Central Government.

In view of the said statutory provision, it is contended by thepetitioners that no licence for establishment of a Bar and Restaurantcan be granted in Rajam, which is neither a Municipality nor aMunicipal Corporation and does not come within the purview of Rule 4of the Bar Rules.

A counter affidavit has been filed by the respondents 1 to 4stating that the grant of bar licence is governed by the Rules framed inG.O.Ms.No.997 dated 24-05-2005 i.e. Bar Rules. It is further statedthat the Rules for grant of licences in Form A-4 and Form 2-B are quitedifferent and distinct and both are governed by different Rules. Hence,the 1[st] respondent is competent to consider any application seekinglicence in Form 2-B. Since admittedly Rajam is declared as NagarPanchayat, there cannot be any prohibition for grant of licence in Form2-B. The petitioners failed to establish any violation of law or Rule inconsidering the application for grant of licence. It is not open to thepetitioners to make a complaint on the ground that their businesswould be affected if any bar licence is granted in the area/locality inrespect of which the petitioners were issued A-4 licences.

The 6[th] respondent, who got himself impleaded, filed a separatecounter affidavit stating that the Commissioner of Prohibition andExcise by proceedings dated 10-12-2006 issued prior clearance forgrant of licence in his favour and the same is valid for a period of 45days. He has also paid a sum of Rs.10,000/- towardsprocessing/inspection charges and if the process of grant of licence isinterdicted at this stage, he would suffer irretrievable injury.

I have heard the learned counsel for both the parties in detail.

Admittedly, Rajam Mandal was declared as Nagar Panchayatunder G.O.Ms.No.855 Municipal Administrative Urban DevelopmentDepartment dated 07-10-2005 in exercise of powers under Andhra

Pradesh Transitional Area and Smaller Urban Areas (Fixation ofCriteria) Rules, 1995 read with Andhra Pradesh Municipalities(Gradation of Municipal Councils and Nagar Panchayats) Rules,1994. Thus, with effect from 17-10-2005 the Rajam Grampanchayatwas merged with four surrounding Gramapanchayats and wasdeclared as Nagar Panchayat. If that be so, it is open to therespondents to grant Form 2-B licences for establishment of Bar andRestaurant in Rajam. The said fact has not been disputed by thepetitioners. However, it is contended that since in the notification,dated 27-05-2006, issued under Rule 5 of the Rules for grant of A-4licences, Rajam was notified as a Mandal and on the basis of thesame, the petitioners have submitted their bids under an impressionthat no bar licences would be granted in the locality, the respondentscannot be permitted to take a different stand for the purpose of grant ofBar Licences.

From the material on record, it is clear that in the notificationdated 27-05-2006 issued under Rule 5 of the Rules, Rajam waswrongly notified as a Mandal instead of Nagar Panachayat in spite ofthe fact that by that time Rajam Grampanchayat was already mergedwith the surrounding Gramapanchayats and was declared as NagarPanchayat. It is not the case of the petitioners that they were notaware of the fact that Rajam was already declared as NagarPanchayat. The averments in the affidavit filed in support of the writpetition make it very clear that the petitioners had knowledge about thefact that the Rajam was declared as Nagar Panchayat with effect from 17-10-2005. Having voluntarily participated in the auction pursuant tothe notification dated 27-05-2006 and having obtained Form A-4licences, they cannot turn back and raise an objection at this stage forgrant of Bar Licences in Form 2-B.

The plea of the petitioners that the bar licences if any grantedwould adversely affect their business cannot be a justifiable ground toissue a Mandamus restraining the respondents 1 to 4 from exercisingthe statutory powers conferred under Bar Rules. Absolutely no case is made out to show that the impugned action of the respondents 1 to 4 inproposing to grant Form 2-B lcience in Rajam Nagar Panchayat is inviolation of the statutory provisions. Hence, the relief as prayed forcannot be granted.

The writ petition is devoid of any merit and the same isaccordingly dismissed. No costs.

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G. ROHINI, J

Dated: 28-12-2006Note: Issue C.C. in two days.B/oKLP