Holding

The appellants had no vested or accrued right to the licences and the doctrine of legitimate expectation did not arise, so the State's policy to cease issuing fresh licences stands.

Summary

The Government of NCT of Delhi invited applications for L‑52 liquor licences for 2004‑05, but later announced a policy to stop issuing fresh licences. The appellants, who had applied before the policy change, claimed that they had an accrued right and a legitimate expectation to be granted licences, especially after some licences were still issued. The High Court directed the State to grant the licences, but the State appealed. The Supreme Court held that dealing in liquor is not a fundamental right and that the applicants had no vested or accrued right; a policy decision can be varied or rescinded, and the advertisement expressly allowed the authority to reject applications without reason. Consequently, the doctrine of legitimate expectation did not apply, and the Court could not compel the State to grant licences. The appeals were dismissed.

Issues considered

The existence of any vested or accrued right in the appellants to obtain L‑52 liquor licences.
Whether the doctrine of legitimate expectation applies to the appellants' claim for licences.
Whether the State's policy decision to stop issuing fresh licences is subject to judicial review on grounds of illegality, irrationality or procedural impropriety.

Legislation cited

Constitution of Indias. Article 14, s. Article 47
Excise Act

Subjects

licenceliquorpolicy decisionlegitimate expectationvested rightadministrative lawArticle 14Article 47Excise ActDelhi Liquor License Rulesjudicial review

Judgment

KULDEEP SINGH A
v.
GOVT. OF NCT OF DELHI

JULY 6, 2006

[S.B. SINHA AND P.K. BALASUBRAMANYAN, JJ.] B

Administrative Law-Policy decision-Application invited for grant of
liquor licence-Subsequently, policy decision taken that no licence would be
granted-Challenge to, by applicants seeking grant of licence-Held: Dealing C
in liquor is not a fundamental right-Applicants did not derive any accrued
or vested right-Policy decision could have been changed-Authority specifYing
/ date of allotment of licence does not clothe the applicants with the legal
right-Thus, doctrine of legitimate expectation not attracted-Some licence
having been granted not a ground to issue licence, mo1eso when applicant
has no legal right-Doctrine of legitimate expectation-Constitution of India, D
1950.

Respondent-Government of National Capital Territory of Delhi
invited applications for grant of L-52 licences for retail sale of Indian Made
Foreign Liquor-IMFL for the licencing year 2004-05 in commercial areas
subject to certain conditions. Appellants-KS, SK and SJ filed applications E
for grant of licence. Since large number of applications were filed, State
notified that no new application would be accepted, however~ pending
application would be considered. There was a huge public outcry.
Government took a policy decision on 9.3.2005 that no fresh licence would
be issued. However, some applications were processed. Appellant's F
applications were not considered in terms of the excise policy of the State
as such they filed writ petitions. High Court allowed the writ petitions
directing State to grant licence to the appellants. State filed Letters Patent
Appeals which were allowed. Hence the present appeal.

Appellants contended that the State acted illegally and without G
juri~diction in rejecting their applications for grant of L-52 licences; that
the State adopted a pick and choose method; that the State itself having
given the date of grant of licence, appellants derived an accrued right in
relation thereto; that the applicants had a legitimate expectation to obtain

335 H
336 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A licences in view of the policy decision of the State; and that the State having
adopted particular procedures for disposal of the applications for grant
of liquor licenses were bound thereby.

Respondent-Gov~:rnment of NCT of Delhi contended that the
appellants do not have any fundamental right to trade in liquor; that the
B State having adopted a policy decision, this Court should not exercise its
power of judicial review interfering therewith; and that in any event, no
case is made out that the policy decision suffers from any illegality,
irrationality or procedUJral impropriety nor any malice is attributed.

Dismissing the appeals, the Court
c
HELD: I. I. Appellants filed applications for grant of licence
pursuant to the policy decision adopted by the State. They might have
invested a huge amount, but did not thereby derive any accrued or vested
right. Therefore, unless an accrued or vested right had been derived by
D the appellants, the policy decision could have been changed. [343-C-D]

Lakshmi Amma alias Echuma Amma v. Devassy, (1970) KLT 204
Howrah Municipal Corpn. and Ors. v. Ganges Rope Co. Ltd. and Ors., [20041
I SCC 663, referred to.

E Director of Public Works and Anr. v. HO PO Sang and Ors., (1961)
AC 901, referred to.

1.2. The matter relating to grant of licence for dealing in liquor is
within the exclusive domain of the State and the citizen has no fundamental
right to carry on business in liquor. If the State had the right to adopt a
F policy decision, they indisputably had a right to vary, amend or rescind
the same. The effect of a policy decision taken by the State is to be
considered having regard to the provisions contained in Article 47 of the
Constitution of India as also its power of regulation and control in respect
of the trade in terms of the provisions of the Excise Act. [343-D-E)

G 1.3. The State had adopted a policy to grant licence on first-cum-
first-serve basis. It had in terms of the public notice dated 7.2.2005,
intended to grant licences for 70 vends. The terms and conditions for grant
of such licences and also the mode and manner in which such applications
were to be filed was specified. Even time frame therefor was fixed. It
H represented to the applicants that their cases would be considered on their
KULDEEP SINGH v. GOVT. OF NCT OF DELHI 337

own merits. Thus, such consideration was required to be fair and A
reasonable. 1345-F-GI

P.T. Rajan v. T.P.M. Sahir and Ors., 120031 8 SCC 498; Punjab State
Electricity Board ltd. v. Zora Singh and Ors., 120051 6 SCC 776; State of
MP. and Ors. v. Nandlal Jaiswal and Ors., 119861 4 SCC 566; Ashok Lenka
v. Rishi Dikshit & Ors. (2006) 4 SCALE 519 and Ramana Dayaram Shetty B
v. International Airport Authority of India and Ors., (197913 SCC 489, relied
on.

2.l. The doctrine of 'legitimate expectation' is a source of procedural
or substantive right. But, however, the relevance of application of the said C
doctrine is as to whether the expectation was legitimate. Such legitimate
expectation was also required to be determined keeping in view the larger
public interest. Claimants' perceptions would not be relevant therefor. The
State actions indisputably must be fair and reasonable. Non-arbitrariness
on its part is a significant facet in the field of good governance. The
discretion conferred upon the State yet again cannot be exercised D
whimsically or capriciously. But where a change in the policy decision is
valid in law, any action taken pursuant thereto or in furtherance thereof,
cannot be invalidated. 1345-G-H; 346-A-CI

R. v. North and East Devon Health Authority, ex parte Coughlan, (2001)
Q.B. 213, referred to. E
2.2. In view of clear stipulation made in the advertisement that the
grant of the licence shall be subject to the acceptance of the application
by the specified Competent Authority who may accept or reject the
application, the appellants could not have had any legitimate expectation
that they would invariably be granted a licence to deal in liquor. A date F
for grant of licence was put in the case of SK. The said date has been given
evidently having regard to the time frame made in the advertisement. It
would not mean that the contents of his application were not required to
be verified in the light of the statutory requirements. It must have been
done under a misconception. Such a clear mistake on the part of the G
authorities would not clothe them with any legal right. Furthermore, SK
withdrew his application so as to enable him to apply for another vend.
He filed such an application only on 8.2.2005 which was acknowledged
by the State in terms of its letter dated 6.5.2005 which did not contain
any promise that the licence would be granted by a particular date. Even
otherwise, it was impermissible for the respondents to specify a date on H
338 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A which the licence shall be granted keeping in view the fact that it was
required to process a large number of applications. Thus, it is not a case
where the doctrine of legitimate expectation would be attracted.
1346-D-GJ

Asl10k Lenka v. Rishi Dikshit & Ors,. (2006) 4 SCALE 519, relied on.
B
3. The policy which would be applicable is the one which is prevalent
on the date of grant and not the one, on which the application had been
filed. If a policy decision had been taken on 16.9.2005 not to grant L-52
licence, no licence could have been granted after the said date. In any event
C th~ period for which licences could be directed to the appellants has since
expired. Thus, this Court, cannot direct grant of licence for the next year
only because some licences had been granted after the said date,
particularly in view of the fact that the appellants have no legal right in
respect thereof. Article 14 of the Constitution of India carries with it a
positive concept. Equality cannot be claimed in illegalities. 1349-B-EJ
D
State of U.f'. v. Raj Kumar Sharma, 120061 3 SCJ 713, relied on.

Union of fndta and Ors. v. Indian Charge Chrome and Anr., (19991 7
SCC 314 and S.B. International ltd. and Ors. v. Ass/I. Director General of
Foreig11 Trade and Ors., 11996! 2 SCC 439, referred to.
E
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2802 of2006.

From the Judgment and Order dated 7.11.2005 In LPA No. 2389/05
and Final Order dated 22.11.05 in Review Petition No. 337/05 in LPA No.
2389/05 of High Court of Delhi.
F WITH
C.A. Nos. 2803 and 2804/06.

Gopal Subrarnaniurn, ASG, T.S. Doabia, Soli J. Sorabjee, Manish
Sharma, Amit Bhardwaj, Anil Nag, Rajesh Tyagi, Dr. Aparna Bhardwaj,
G Atishi Dipankar, Rajshekhar Rao, Sri Devi Venkataswamy, Anil Katiyar
Pragyan Pradip Sharma, Chinmoy, Andhendumauli Prasad and Dr. Kailash
Chand for the appearing; parties.

The Judgment of the Court was delivered by

H S.B. SINHA, J. Leave granted.
KULDEE;P SINGH v. GOVT. OF NCT OF DELHI [SINHA, J.] 339
The Governn~,ent of National Capital Territory of Delhi formulated an A
excise policy in 2002 permitting sale of Indian Made Foreign Liquor (IMFL)
through private parties upon issuance of L-52. licences.

Upto the year 1979, prohibition was in force in the State. From 1979
to 2003, IMFL and Country Liquor were being sold exclusively through
public sector undertakings. Pursuant to or In furtherance of the said purported B
policy, however, an advertisement was issued inviting applications for grant
of L-52 licences for retail sale of IMFL for the licencing year 2004-05 in
commercial areas subject to the following conditions:

(i) No fresh L-52 licence in the private sector would be granted if
the location of the proposed vend was within 250 meters of an C
existing retail vend.
(ii) The applicant should be in actual physical possession of a shop
admeasuring 500 sq. ft. in an approved and recognized
commercial complex.
D
(iii) Proposed vend should not be within 75 meters of : (a) major
educational institutions; (b) religious places; and (c) hospitals
with 50 beds and above.
(iv) The grant of L-52 licence shall be subject to the acceptance of
the application by the competent authority who may accept or E
reject any application without assigning any reasons. Further, the
licensing authority was under no obligation to grant any licence
for which application had been made.
(v) The licence was to be subject to the general conditions in Ru·le
33 and special conditions in Rule 34 of the Delhi Liquor License
Rules, 1976.
F

Relevant clauses of the L-52 licence may also be noticed. Clause 12
provides for actual physical possession of covered shop admeasuring 500 sq.
ft. in an approved commercial complex/area recognized by the local bodies
such as DDA, MCD, NDMC, etc. No licence was to be issued for a liquor G
vend within 75 meters of : (a) major educational institutions (b) religious
places (c) hospitals with fifty beds and above. 'Major educational institutions'
were defined to mean "middle and higher secondary schools, colleges and
other institution of higher learning recognized by the Government of NCT of
Delhi or Government of India". No licence was to be issued where the proposed
premises was located within 250 meters from an existing L-2/L-52 vend of H
340 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A foreign liquor. The licences were to be granted upon consideration of the
applications on case to case basis. Such applications were subject to acceptance
by the competent authority who may accept or reject any application without
assigning any reason and that the licensing authority would be under no
obligation to grant any licence for which an application has been made. A
B time schedule, however, was fixed therefor to the effect that the licence was
to be granted within 30 days from the grant of approval therefor.

Pursuant to or in furtherance of the said advertisement, the Appellants
herein filed their respective applications for grant of licences. In view of the
fact that large number of applications were filed, the State issued a public
C notice on or about 7.2.2005 notifying closure of the scheme. It was, however,
clarified that pending applications would be considered as per the rules and
terms and conditions of the Scheme and no new application would be accepted.

Whereas in the case of Ku/deep Singh, his application was rejected, in
the case of Surinder Katiyal, the Appellant withdrew his application so as to
D enable him to file another application at a different site.
Kuldeep Singh preferred an appeal against the order rejecting his
application before the Excise Commissioner. It was allowed by an order
dated 11.5.2005 and the matter was remitted to the Collector, Excise with a
direction to conduct a fresh inspection to ascertain the facts on a finding that
E the earlier inspection had not been carried out properly. Pursuant thereto a
fresh inspection of the pre:mises was carried out in May, 2005.

The Appellants herein filed writ petitions before the High Court in/er
alia alleging that their applications had not been considered in terms of the
excise policy of the State. Directions had been issued in the case of Sadaram
F Gupta to the Respondents herein to dispose of his application for grant of L-
52 licence for running a retail liquor vend on the same terms and conditions
as well as the policy existing on or before 16.9.2005.

In or about the month of March, however, there was a huge public
G outcry in regard to the excise policy of the State. Resident Welfare Associations
and elected representatives also lodged protests. The matter was referred to
the Cabinet for a decision whether or not the State would continue with the
said policy. On or about 9th March, 2005, a decision was taken that no fresh
licence would be issued by the Depa11ment. Surprisingly despite the same,
applications were processed on the purooi1ed ground that in the event, the
H State was to direct approval in regard to continuation of its liquor policy, the
KULDEEP SINGH v. GOVT. OF NCT OF DELHI [SINHA; J.) 341
licences could be issued immediately thereafter. A
However, the matter was placed before the competent authority of the
State, whereupon the following decision was taken :

(i) "The exercise for grant of licence was stopped in the month of
March, 2005... ... "
B
(ii) "Since the opening of shops is a matter of Govt Policy, decided
on a year to year basis, it has been decided to review the last
year's policy and not consider granting any more L-52 Licences."
(iii) "For the all above said retail vends, wholesale bonds and licensed
premises of various categories, effective and efficient enforcement c
is required to ensure implementation of the provisions of the
Excise Law and detection/ prevention of revenue evasion. As
against the requirement of 115 Inspectors and Sub-Inspectors to
cover the given number of licensed premises, the Department
has only a skeletal inspectorate staff of 51 to discharge its statutory
functions. In the considered view of the Department, it will not D
be appropriate to open any new L-52 vend .... "
(iv) ''The above said proposal is all the more pertinent keeping in
view the prohibition policy of the Government which is aimed at
discouraging drinking. The Directorate of Prohibition, Govt. of
NCT of Delhi educates the people, especially the youth and socio- E
economically weaker sections, about the ill effects of alcohol by
various means and the message of prohibition is conveyed by
spending money from the exchequer. In this backdrop, the
uncontrolled proliferation of liquor shops would be against the
overall objective of the Government as stated in Article 47 of the F
Constitution of India."
(v) "At the time of inviting applications, the number of shops required
or the areas in which they were to be opened was not mentioned.
The tremendous wave of public resentment against the opening
of such shops, in keeping with the decided policy and norms, G
resulted in the need to stop the process midway and to keep the
pending applications in abeyance."
(vi) "In view of the above and the fact that an order of rejection is
necessitated by the policy directions of the Government, a suitable
and reasoned order may be passed by the Collector (Excise) in
H
342 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A the instant case."

The said proposal was approved by the Finance Minister who was
competent therefor under the Rules of Executive Business. The said decision
of the Finance Minister was ratified by the Council of Ministers. The High
Court, however, in the writ applications pending before it directed that the
B decision of the competent authority may be placed on record within three
days. The Collector, Excise rejected all the applications received pursuant to
the advertisement dated 22.11.2004 relying nn or on the basis of the purported
policy decision of the Government taken on 16.9.2005 by an order dated
20th September, 2005.

c However, having regard to the earlier orders passed in the writ petitions,
a learned Single Judge of the High Court allowed the writ petitions directing
the State to grant licences to the Petitioners within one month in the event the
writ petitioners have fulfilled all the requirements therefor, before 16.9.2005.
Letters Patent Appeals filed thereagainst have been allowed by reason of the
D impugne~ judgment.

The learned counsel appearing on behalf of the Appellants contended:

(i) The State acted illegally and without jurisdiction in rejecting the
applications for grant of L-52 licences to the Appellants in so far
as not only the cases of others had been considered even after
E
9th March, 2005 but licences had also been granted during the
period 11..3.2005 and 28.4.2005.
(ii) The State adopted a pick and choose method ignoring the fact
that the licence was to be granted on first-cum-first-serve basis.

F (iii) The State itself having given the date of grant of licence stating
that the licence would be issued on 10.1.2005, the Appellants
derived an accrued right in relation thereto.
(iv) The High Court having directed the State to consider the
applications filed by the Appellants herein on the same terms
G and conditions, the State could not have ignored the same. The
applicants had a legitimJte expectation to obtain licences in view
of the policy decision of the State and, thus, it could not have
refused to grant such licences.
(v) The State having adopted particular procedures for disposal of
H the applications for grant of liquor licenses were bound thereby.
KULDEEP SINGH v. GOVT. OF NCT OF DELHI [SINHA • .I.] 343

Mr. Gopal Subramanaium, learned Additional Solicitor General A
appearing on behalf of the Respondent, on the other hand, submitted:

(i) The Appellants do not have any fundamental right to trade in
liquor.
(ii) The State having adopted a policy decision, this Court should B
not exercise its power of judicial review interfering therewith. In
any event, no case that the policy decision suffers from any
illegality, irrationality or procedural impropriety having been made
out nor any malice having been attributed in regard to the policy
decision, this Court should not interfere with the judgment of the
High Court. c
(iii) The parties in whose favour licenses have been granted were
necessary parties to the writ petitions and in their absence the
writ petitions could not have been entertained.

The Appellants filed applications for grant of licence pursuant to the D
policy decision adopted by the State. They might have invested a huge amount.
but did not thereby derive any accrued or vested right. The matter relating to
grant of licence for dealing in liquor is within the exclusive domain of the
State. If the State had the right to adopt a policy decision, they indisputably
had a right to vary, amend or rescind the same. The effect of a policy decision
taken by the State is to be considered having regard to the provisions contained E
in Article 47 of the Constitution of India as also its power of regulation and
control in respect of the trade in terms of the provisions of the Excise Act.

We, however, must express our dissatisfaction as regards the manner in
which the cases have been dealt with. If a policy decision had been taken by
a competent authority, viz., the Finance Minister as far back on 9th March, F
2005, we fail to see any reason as to how the officials of the State could
proceed with the processing of the applications filed by the applicants even
thereafter. The explanation sought to be offered that the same was done on
the premise that the Cabinet may not approve the same, in our opinion, is an
after-thought. Although, other applications were processed, the applications G
filed by the Appellants who had filed writ applications before the Delhi High
Court \Vere not considered. It is beyond any cavil that the cases of the
applicants were required to receive due consideration at the hands of the
competent authority along with those who were similarly situated.

So far as the case of Kuldeep Singh is concerned, his application was H
344 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A required to be considered afresh in vit:w of the order passed by the Excise
Commissioner. Insofar as the case of Sadaram Gupta is concerned, the same
was required to be considered in terms of the interim order passed by the
High Court. In the case of Surinder Katiyal although he had withdrawn his
earlier application and filed a fresh application for grant of a licence at a
different place, his contention for shifting was accepted by the Respondent
B as would appear from the letter dated 6.5.2005 wherein it was stated:

"With reference to your letter dated 2.2.2005 and 8.2.2005 you are
hereby informed that your request for shifting of the proposed liquor
from UG-1,2,3, Road No. 44, Plot No. 27, Sagar Plaza II, Pitampura, ....
Community Center, New Delhi to G-11-12, Vardhman Western Plaza,
c Behera Enclave, Paschin Vihar, Delhi 63 has been accepted by the
Competent Authority.

You are therefore directed to submit the all requisite documents
i.e. Commercial Proof, Rent Agreement, NOC for running liquor shop,
ownership proof, Affidavits, Site Plan for your new proposed
D premises."

For the purpose of consideration of the applications filed by the
applicants, the following time frame was specified:
Scrutiny of Application No. of Days Cumulative
E Total
Issue of deficiency memo,. if
any/ Approval for site
inspection 10 days 10 days
Site Inspection Report 10 days 20 days
F Approval for grant of Licence 04 days 24 days
Issue of offer letter 06 days 30 days
Although it was not imperative on the part of the Respondents herein
to adhere thereto, as the same was directory in nature, it was required to be
substantially complied with. [See P. T Rajan v. TP.M. Sahir and Ors., [2003]
G 8 SCC 498 and Punjab State Electricity Board ltd. v. Zora Singh and Ors.,
r2oos1 6 sec 776].
Here, however, the State had made a change in its policy decision of
opening the doors to the private entrepreneurs evidently with a view to earn
more revenue. It represented to the applicants that their cases would be
H considered on their own merits. Such consideration was, thus, required to be
KULDEEP SINGH v. GOVT. OF NCT Or DELHI [SINHA, .I.] 345
fair and reasonable. Although dealing in liquor as has rightly been submitted A
by the learned Additional Solicitor General is not a fundamental right, but
indisputably the equality clause contained in Article 14 of the Constitlllion of
India would apply.

In State of M.P. and Ors. v. Nandlal Jaiswa/ and Ors., (1986] 4 SCC
566 whereupon the learned Additional Solicitor General himselfrelied upon, B
this Court stated:

" ... No one can claim as against the State the right to carry on trade
or business in liquor and the State cannot be compelled to part with
its exclusive right or privilege of manufacturing and selling liquor.
But when the State decides to grant such right or privilege to others C
the State cannot escape the rigour of Article 14 ... "

[See also Ashok Lenka v. Rishi Dikshit & Ors., (2006) 4 SCALE 519.]

Moreover, ifthe equality clause applied, the State could not have adopted
different procedures for different applicants. [See Romana Dayaram Shelly v. D
International Airport Authority of India and Ors., (1979] 3 SCC 489, para
10]

The learned Additional Solicitor General furthermore failed to give any
satisfactory answer to a query made by us as to how on the face of such E
policy decision which according to the State was strictly adhered to, licences
had been granted to six other persons. We would, however, like to place on
record the statements made by the learned Additional Solicitor General that
the State would take action for cancellation of the licences of the said licensees.

The State had adopted a policy to grant licence on first-cum-first-serve F
basis. It had in terms of the public notice dated 7.2.2005, intended to grant
licences for 70 vends. Not only the terms and conditions for grant of such
licences have been specified, the mode and manner in which such applications
were to be filed had also been specified. As noticed hereinbefore, even time
frame therefor was fixed.
G
It is, however, difficult for us to accept the contention of the learned
Senior Counsel, Mr. Soli J. Sorabjee that the doctrine of 'legitimate
expectation' is attracted in the instant case. Indisputably, the said doctrine is
a source of procedural or substantive right. [See R. v. North and East Devon
..... Health Authority, ex parte Coughlan, (2001) Q.B. 213] But, however, the H
346 SL:PREME COURT REPORTS 12006] SUl'P. 3 S.C.R.

A relevance of application of the said doctrine is as to whether the expectation
was legitimate. Such legitimate expectation was also required to be determined
keeping in view the larger public interest. Claimants' perceptions would not
be relevant therefor. The State actions indisputably must be fair and reasonable.
Non - arbitrariness on its part is a significant facet in the field of good
governance. The discretion conferred upon the State yet again cannot be
B exercised whimsically or capriciously. But where a change in the policy
decision is valid in law, any action taken pursuant thereto or in furtherance
thereof, cannot be invalidated.
....
The State in its advertisement clearly stated:
c "The grant of L-52 licence shall be subject to the acceptance of the
application by the specified competent authority who may accept or
reject any application without assigning hny reason. The licensing
authority shall be under no obligation to grant any licence for which
application has been made."
D In view of clear stipulation made in the advertisement therefor, the
Appellants could not have had any legitimate expectation that they would
invariably be granted a licence to deal in liquor. J\ date for grant of licence,
however, was put in the case of Surinder Katzya/. The said date has been
given evidently having regard to the time frame made in the advertisement.
E It must have been done under a misconception. Such a clear mistake on the
part of the authorities would not clothe them with any legal right. His
application was received on I 0.12.2004 while acknowledging receipt of the
said application, it was stated that the licence will be issued on I 0.1.2005.
The same, however, would not mean that the contents of his application were
not required to be verified in the light of the statutory requirements.
F Fu11hermore, he withdrew his application so as to enable him to apply for
another vend. He tiled such an application only on 8.2.2005 which was
acknowledged, as noticed hereinbefore, by the State in terms of its letter
dated 6.5.2005. The said letter dated 6.5.2005 did not contain any promise
that the licence would be granted by a particular date. Even otherwise, it was
G impermissible for the Respondents to specify a date on which the licence
shall be granted keeping in view the fact that it was required to process a
large number of applications. It is, thus, not a case where the doctrine of
legitimate expectation would be attracted.

The State issued a public notice on 7.2.2005. Even prior thereto, the
H State notified that only those applications which had been received by the
KULDEEP SINGH v. GOVT. OF NCT OF DELHI [SINHA, J.] 347

Department would be considered and no more. The Appellant, Surinder Katiyal A
evidently filed his application on 8.2.2005. Still his application had been
processed. Some correspondences had been entered into in relation thereto.

It is not in dispute that the State received a large number of applications.
It was required to process all the applications. While processing such
applications, inspections of the proposed sites were to be carried out and the B
contents thereof were required t.:i be verified. For the said purpose, the
applications were required to be strictly scrutinized. [See Ashok Lenka (supra)]

Unless, therefore, an accrued or vested right had been derived by the
Appellants, the policy decision could have been changed.
c
What would be an acquired or accrued right in the present situation is
the questio11.

In Director of Public Works and Anr. v. HO PO Sang and Ors., (1961)
AC 901, the Privy Council considered the said question having regard to the D
repealing provisions of Landlord and Tenant Ordinance, 1947 as amended on
9th April, 1957. It was held that having regard to the repeal of Sections 3A
to 3E, when applications remained pending, no accrued or vested right was
derived stating:

"In summary, the application of the second appellant for a rebuilding E
certificate conferred no right on him which was preserved after the
repeal of sections 3A-E, but merely conferred hope or expectation
that the Governor in Council would exercise his executive or
ministerial discretion in his favour and the first appellant would
thereafter issue a certificate. Similarly, the issue by the first appellant
of notice of intention to grant a rebuilding certificate conferred no F
right on the second appellant which was preserved after the repeal,
but merely instituted a procedure whereby the matter could be referred
to the Governor in Council. The repeal disentitled the first appellant
from thereafter issuing any rebuilding certificate where the matter
had been referred by petition to the Governor in Council but had not G
been determined by the Governor."

[See also Lakshmi Amma alias Echuma Amma v. Devassy, 1970 KL T
204.]

The question again came up for consideration in Howrah Municipal H
348 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A Corpn. and Ors. v. Ganges Rope Co. Ltd. and Ors., (2004] I SCC 663
wherein this Court categorically held:

" ... The context in which the respondent Company claims a vested
right for sanction and which has been accepted by the Division Bench
of the High Court, is not a right in relation to "ownership or possession
B of any property" for which the expression "vest" is generally used.
What we can understand from the claim of a "vested right" set up by
the respondent Company is that on the basis of the Building Rules,
as applicable to their case on the date of making an application for
sanction and the fixed period allotted by the Court for its consideration,
it had a "legitimate" or "settled expectation" to obtain the sanction.
c In our considered opinion, such "settled expectation", if any, did not
create any vested right to obtain sanction. True it is, that the respondent
Company which can have no control over the manner of processing
of application for sanction by the Corporation cannot be blamed for
delay but during pendency of its application for sanction, ifthe State
D Government, in exercise of its rule-making power, amended the
Building Rules and imposed restrictions on the heights of buildings
on G.T. Road and other wards, such "settled expectation" has been
rendered impossible of fulfilment due to change in law. The claim
based on the alleged "vested right" or "settled expectation" cannot be
set up against statutory provisions which were brought into force by
E the State Government by amending the Building Rules and not by the
Corporation against whom such "vested right" or "settled expectation"
is being sought to he enforced. The "vested right" or "settled
expectation" has been nullified not only by the Corporation but also
by the State by amending the Building Rules. Besides this, such a
F "settled expectation" or the so-called "vested right" cannot be
countenanced against public interest and convenience which are sought
to be served by amendment of the Building Rules and the resolution
of the Corporation issued thereupon."

In Union of India and Ors. v. Indian Charge Chrome and Anr., [I 999]
G 7 sec 314, again this Court emphasized:
" ... The application has to be decided in accordance with the law
applicable on the date on which the authority granting the registration
is called upon to apply its mind to the prayer for registration ... "

H In S.B. International Ltd. and Ors. v. Ass/I. Director General of Foreign
KULDEEP SINGH v. GOVT. OF NCT OF DELHI [SINHA, J.] 349
Trade and Ors., [1996] 2 sec 439, this Court repelled a contention that the A
authorities cannot take advantage of their own wrong, viz., delay in issuing
the advance licence stating:

" ... We have mentioned hereinbefore that issuance of these licences is
not a formality nor a mere ministerial function but that it requires due
verification and fonnation of satisfaction as to compliance with all B
the relevant provisions ... "

In a case of this nature where the State has the exclusive privilege and
the citizen has no fundamental right to carry on business in liquor, in our
opinion, the policy which would be applicable is the one which is prevalent C
on the date of grant and not the one, on which the application had been filed.
If a policy decision had been taken on 16.9.2005 not to grant L-52 licence,
no licence could have been granted after the said date.

In any event the period for which licences could be directed to the
appellants has since expired. This Court, thus, cannot direct grant of licence D
for the next year only because some licences had been granted after 9th
March, 2005. Article 14 of the Constitution of India carries with it a positive
concept. Equality cannot be claimed in illegalities. [See State of U.P. v. Raj
Kumar Sharma, (2006) 3 SCJ 713] We have moreover noticed hereinbefore,
the statement made by the learned Additional Solicitor General that steps
would be taken for cancellation of licences of those licensees who had been E
granted licence after the said date. We do not intend to make any further
observation in regard thereto.

It is true that some licences had been granted, but the same cannot by
itself be a ground to issue a writ of mandamus, particularly in view of the fact F
that the appellants have no legal right in respect thereof.

For the reasons aforementioned, we do not find any merit in these
appeals. Moreover the period for which the applications for grant of licences
had been granted has also expired. We dismiss these appeals. No costs.
G
N.J. Appeals dismissed.
,.