MANU/SC/0229/2014

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 3196-98/2014 (Arising out of SLP (C) Nos. 26241-26243/2012), Civil Appeal Nos. 3199-3218/2014 (Arising out of SLP (C) Nos. 27163-27182 of 2012), Civil Appeal No. 3219/2014 (Arising out of SLP (C) No. 25725 of 2012), Civil Appeal No. 3220/2014 (Arising out of SLP (C) No. 24414 of 2012), Civil Appeal No. 3221/2014 (Arising out of SLP (C) No. 38251 of 2012), Contempt Petition (Civil) No. 449 of 2012, Contempt Petition (Civil) No. 450 of 2012, Contempt Petition (Civil) No. 20 of 2013, Contempt Petition (Civil) No. 18 of 2013, Contempt Petition (Civil) No. 19 of 2013, Contempt Petition (Civil) No. 431 of 2012, Contempt Petition (Civil) Nos. 432-444 of 2012, Contempt Petition (Civil) No. 5 of 2013, Civil Appeal No. 3222/2014 (Arising out of SLP (C) No. 11004 of 2013), Civil Appeal No. 3223/2014 (Arising out of SLP (C) No. 14956 of 2013), Civil Appeal No. 3224/2014 (Arising out of SLP (C) No. 14958 of 2013), Civil Appeal No. 3225/2014 (Arising out of SLP (C) No. 14959 of 2013), Civil Appeal No. 3226/2014 (Arising out of SLP (C) No. 14960 of 2013), Civil Appeal No. 3227/2014 (Arising out of SLP (C) No. 14961 of 2013)

Decided On: 05.03.2014

Appellants: State of Kerala and Ors. Vs. Respondent: B. Surendra Das and Ors.

Hon'ble Judges/Coram:
H.L. Gokhale and Jasti Chelameswar

JUDGMENT

H.L. Gokhale, J.

1. Leave granted.

2. This group of Civil Appeals raises the questions with respect to the legality and validity of two amendments introduced by the first Appellant-State of Kerala, in pursuance of its Abkari Policy framed in 2011-2012, in the Foreign Liquor Rules framed under the Kerala Abkari Act, since those amendments have been struck down as unconstitutional by the impugned judgment and order rendered by the High Court of Kerala.

3. Rule 13 of the Foreign Liquor Rules governs the grant of licences for the sale of the Indian Manufactured Foreign Liquor ('IMFL' for short). The two amendments which are disputed are as follows:

(i) Firstly, the words three star' were omitted from Rule 13(3) of these rules by Government of Kerala by issuing notification dated 9.12.2011. Consequently, after this amendment of the rule which has come into force immediately, three star hotels not already having a licence, will not be eligible to get a bar licence for retail sale of liquor in the hotels. Thus, no new hotels having the three star classification will be issued the licence known as FL-3 licence for selling the IMFL. The hotels having the two star or lesser classification are already ineligible to get this licence by virtue of the pre-existing proviso to Rule 13(3), introduced by notification dated 20.12.2002.

(ii) Secondly, Rule (3E) has been added in this Rule 13 w.e.f. 27.3.2012 by issuing a notification of even date, whereby no new bar hotels of any classification will be permitted to be opened (a) if they are situated within a distance of 3 kms. from existing bar hotels in a panchayat area, and (b) within a distance of 1 km. from existing bar hotels in a municipal area.

4. The avowed object of this Abkari Policy is to curb the rampant alcoholism in the State of Kerala, which claims to have the highest consumption of alcohol as against the other states in India, and whereby the younger generation is getting addicted. Thus, the objective is in pursuance of Article 47 of the Constitution of India which declares it to be a Directive Policy for the State to endeavour to bring about prohibition of consumption of intoxicating drinks. These two amendments were challenged by the Respondents in the Kerala High Court on the touchstone of Article 14 of the Constitution........