Created byFuzzy Cloud

Supreme Court of India

THE STATE OF TAMIL NADU REP. BY SEC. AND ORSversusK. BALU AND ANR.

Citation
2018 INSC 188
Decided
23 February 2018
Disposal
Disposed off

Holding

State governments may, after factual assessment, extend the principle prohibiting liquor sale along highways to areas covered by local self‑governing bodies or statutory development authorities, and the term ‘municipal areas’ does not bar such determination.

Summary

The Supreme Court was asked to interpret paragraph 7 of its 11 July 2017 order, which dealt with prohibiting the sale of liquor along highways but clarified that it did not apply to licensed establishments within municipal areas. The petitioners sought a further clarification to determine whether the same principle should extend to areas governed by local self‑governing bodies or statutory development authorities. The Court held that the expression “municipal areas” does not preclude state governments from deciding, on a factual basis, whether the principle applies to such areas, and that licensees may submit representations to the competent authority. It also ruled that the applications were not a review or modification of the earlier judgment and therefore were maintainable as applications for clarification. Consequently, the Court directed that the state governments may make the determination and disposed of the pending applications.

Issues considered

  • The scope of the term ‘municipal areas’ in paragraph 7 of the 11 July 2017 order – whether it excludes local self‑governing bodies and statutory development authorities.
  • Whether the applications for clarification constitute a review/modification of the earlier judgment and are maintainable.
  • Whether state governments may extend the principle prohibiting liquor sale near highways to areas under local self‑governing bodies or development authorities.

Legislation cited

Subjects

LiquorSale of liquorHighwaysMunicipal areasLocal self‑governing bodiesStatutory development authorityClarificationSupreme CourtReviewCivil appeal

Judgment

                        [2018] 1 S.C.R. 665                             665


    THE STATE OF TAMIL NADU REP. BY SEC. AND ORS                        A
                                 v.
                       K. BALU AND ANR.
(MA Nos 489-491/2018, 366-368/2018, 392-394/2018, 395-397/2018,
388-390/2018, 1543-1545/2017, 1546-1548/2017 and 1549-1551/2017)        B
                                 IN
              (Civil Appeal Nos. 12164-12166 of 2016)
                         FEBRUARY 23, 2018
           [DIPAK MISRA, CJI, AMITAVA ROY AND                           C
                DR. D. Y. CHANDRACHUD, JJ.]
       Liquor – Sale of – In the order passed by Supreme Court on
11.7.2017, it was observed that the purpose of the directions
contained in the order dated 15.12.2016 is to deal with the sale of
liquor along and in the proximity of highways, which provide
                                                                        D
connectivity between cities, towns and villages – The order did not
prohibit licensed establishments within municipal areas – This Court
further clarified in the order that it will govern other municipal
areas as well – In the subsequent order dated 13.12.2017, liberty
was granted to the licence holders to submit a representation to the
state government that the same principle should apply to the licensed   E
establishments of the petitioners, as they applied to municipal areas
– Having regard to these directions, the state governments would
not be precluded from determining whether the principle which has
been laid down by this Court in order dated 11.7.2017 should also
apply to areas covered by local self-governing bodies and statutory
                                                                        F
development authorities – It is a question of fact as to whether an
area covered by a local self-governing body is proximate to a
municipal agglomeration or is sufficiently developed as to warrant
the application of the same principle – In deciding as to whether
the principle which has been set down in the order dated 11.7.2017
should be extended to a local self-governing body (or statutory         G
development authority) the state governments would take recourse
to all relevant circumstances including the nature and extent of
development in the area and the object underlying the direction
prohibiting the sale of liquor on national and the state highways –
                                                                        H
                                 665
666            SUPREME COURT REPORTS                        [2018] 1 S.C.R.


A     The use of the expression ‘municipal areas’ in order dated 11.7.2017
      does not prevent the state governments from making that
      determination and from taking appropriate decisions consistent
      with the object of the orders passed by this Court – It is left open
      to individual licensees to submit their representations to the
      competent authorities in the state governments if they are so advised
B
      upon which appropriate decisions may be taken by the state
      governments – MAs/IAs disposed of.
            State of Tamil Nadu v. K Balu [2016] 11 SCR 244
            : (2017) 2 SCC 281; Arrive Safe Society of Chandigarh
            v. The Union Territory of Chandigarh SLP (C)
C           No.10243 of 2017; APSRTC v. Abdul Kareem [2007]
            1 SCR 888 : (2007) 2 SCC 466; Cine Exhibitions
            Private Limited v Collector, District Gwalior (2012) 6
            SCC 698; Hotel Sonai Beer Bar and Permit Room v
            State of Maharashtra SLP (C)No 19845/2017 –
D           referred to.
                              Case Law Reference
            [2016] 11 SCR 244          referred to             Para 1
            [2007] 1 SCR 888           referred to             Para 4
E           (2012) 6 SCC 698           referred to             Para 4
            CIVIL APPELLATE JURISDICTION : MA Nos. 489-491/2018,
      366-368/2018, 392-394/2018, 395-397/2018, 388-390/2018, 1543-1545/
      2017, 1546-1548/2017 and 1549-1551/2017 in Civil Appeal Nos. 12164-
      12166 of 2016.
F
             From the Judgment and Order dated 25.02.2013 and 28.03.2013
      of the High Court of Judicature at Madras in Writ Petition No. 23773 of
      2012, M. P. Nos. 9 and 10 of 2013 in Writ Petition No. 23773 of 2012.
            Abhishek Manu Singhvi, Sr. Adv, Roy Abraham, Ms. Seema Jain,
      Ms. Reena Roy, Himinder Lal, P.N. Goswami, Ms. Pranita Shekhar,
G     Pawan K. Sharma, Shashi Ranjan, Dharmendra Kumar Sinha, Dr. Manish
      Singhvi, Satyendra Kumar, Shailja Nanda Mishra, Irshad Ahmad, Ashutosh
      Dubey, Krishnendu Sarkar, Ms. Rajshri, Abhishek Chauhan, V. S. Rawat,
      Sushil Pandey, Ms. Kuljit Kaur, Pragyan Pradip Sharma, Ms. Anandini
      Kumari, P. V. Yogeswaran, R. B. Phookan, Ms. Neha Tandon, Shailesh
H     Madiyal, M. Yogesh Kanna, Yash Pal Dhingra, Ms. Nandini Sen
       THE STATE OF TAMIL NADU REP. BY SEC. v. K. BALU                          667


Mukherjee, Ajay Marwah, Irshad Ahmad, Advs. for the Appellants.                 A
      S.S. Shamshery, AAG, C. L. Pandey, Sr. Adv., Ms. Binu Tamta,
S.S. Rawat, Hemant Arya, G.S. Makker, Amit Sharma, Sandeep Singh,
Ankit Raj, Ms. Indira Bhakar, Ms. Ruchi Kohli, Manish Kaushik,
Ms. Ananya Pandey, Dipesh Sharma, Yash Pal Dhingra, G. Prakash,
Jishnu M. L., Mrs. Priyanka Prakash, Mrs. Beena Prakash,                        B
Vijay Shankar V. L., S. Thananjayan, Kaleeswaram Raj, Suvidutt M.S.,
Ajay Marwah, Advs. for the Respondents.
         The Order of the Court was delivered by
       DR. D. Y. CHANDRACHUD, J. 1. This batch of MAs/IAs
                                                                                C
arises from the judgment dated 15 December 2016 rendered by this
Court in State of Tamil Nadu v K Balu1and the subsequent orders
dated 31 March 2017 and 11 July 2017. The last of the above orders
was delivered in -----Arrive Safe Society of Chandigarh v The Union
Territory of Chandigarh 2.                                                      D
       2. Though the reliefs which have been sought in the individual
MAs/IAs may differ, during the course of the hearing there is a broad
consensus that for the purpose of the present proceedings, it would be
sufficient if this Court were to interpret paragraph 7 of the order dated
11 July 2017. Paragraph 7 is extracted below:
                                                                                E
         “7. The purpose of the directions contained in the order dated 15
         December 2016 is to deal with the sale of liquor along and in
         proximity of highways properly understood, which provide
         connectivity between cities, towns and villages. The order does
         not prohibit licensed establishments within municipal areas. This
                                                                                F
         clarification shall govern other municipal areas as well. We have
         considered it appropriate to issue this clarification to set at rest
         any ambiguity and to obviate repeated recourse to IAs, before
         the Court.”
       3. Learned counsel submitted that the expression ‘municipal areas’
in the above paragraph was not intended to exclude areas within the             G
jurisdiction of local self-governing bodies. Many of them, it is urged,
may be developed in a manner similar to municipalities. Others, may be
geographically proximate to an urban agglomeration. Hence it was urged
1
    Civil Appeal 12164-12166/2016
2
    Special Leave Petition (C) No.10243 of 2017                                 H
668               SUPREME COURT REPORTS                            [2018] 1 S.C.R.


A     that an appropriate direction may be issued to obviate uncertainties in
      application, occasioning the need for repeated recourse to this Court or,
      as the case may be, litigation in the High Courts.
             4. The application has been opposed by one of the contesting
      intervenors who placed reliance on the decisions of this Court in APSRTC
B     v Abdul Kareem 3 and Cine Exhibitions Private Limited v
      Collector, District Gwalior4. It has been urged that an application for
      modification or clarification of a judgment would fall within the realm of
      a review and hence the present applications would not be maintainable.
             5. Dealing with the above objection, the learned counsel appearing
C     on behalf of the applicants submit that they seek neither a review nor a
      modification of the orders passed by this Court. The attention of the
      Court was drawn to an order dated 13 December 2017 passed by this
      Court in Writ Petition (C) Nos 964/2017 and 1050/2017 in the following
      terms:
D              “Having heard learned counsel for the parties, we think it
               appropriate to direct that each of the petitioners shall submit a
               representation within three weeks hence, stating that they are
               entitled to be governed by the principle as applicable to the municipal
               areas/MIDC developed areas. The individual facts shall be
               mentioned in each representation. The same shall be considered
E              by the competent authority and decided, keeping in view the
               judgments of this Court, preferably within four weeks from the
               date of receipt of the representation. Needless to say, the
               representation shall be decided by ascribing reasons and recording
               a finding. If the petitioners are aggrieved, they can approach this
F              Court. With the aforesaid directions and liberty, the writ petitions
               stand disposed of.”
             The submission is that it will suffice if permission is granted to the
      state governments to determine whether the applicants and similarly
      placed individuals are governed by the principle which was laid down by
G     this Court in relation to municipal areas.
            6. In Cine Exhibitions Private Limited (supra) a bench of two
      learned Judges comprising of Justice KSP Radhakrishnan and Justice
      Dipak Misra, (as the learned Chief Justice then was) held thus:
      3
          (2007) 2 SCC 466
H     4
          (2012) 6 SCC 698
       THE STATE OF TAMIL NADU REP. BY SEC. v. K. BALU                         669
                 [DR. D. Y. CHANDRACHUD, J.]

         “Generally an application for correction of a typographical error     A
         or omission of a word, etc. in a judgment or order would lie, but a
         petition which is intended to review an order or judgment under
         Order 47 Rule 1 of the Code of Civil Procedure and in criminal
         proceedings except on the ground of an error apparent on the
         face of the record, could not be achieved by filing an application
                                                                               B
         for clarification/modification/recall or rehearing, for which a
         properly constituted review is the remedy. (Id at page 703-704)”
       In the present proceedings neither is the Court called upon to
review its judgment nor to modify its orders. In fact reliance has been
placed on the orders passed by this Court on 11 July 2017 in Arrive
Safe Society(supra) and subsequently in Hotel Sonai Beer Bar and               C
Permit Room v State of Maharashtra5 and the connected writ petitions
referred to earlier.
       7. In the order passed by this Court on 11 July 2017, it was
observed that the purpose of the directions contained in the order dated
15 December 2016 is to deal with the sale of liquor along and in the           D
proximity of highways properly understood, which provide connectivity
between cities, towns and villages. Having regard to this object it was
noted that the order does not prohibit licensed establishments within
municipal areas. Indeed, in order to ensure that the order is uniformly
understood across the country, this Court clarified that it will govern        E
other municipal areas as well. In the subsequent order of this Court
dated 13 December 2017, liberty has been granted to the licence holders
to submit a representation to the state government that the same principle
should apply to the licensed establishments of the petitioners, as they
apply to municipal areas/MIDC developed areas (in relation to the State
of Maharashtra).                                                               F

       8. Having regard to these directions, we are of the view that the
state governments would not be precluded from determining whether
the principle which has been laid down by this Court in the order dated
11 July 2017 in Arrive Safe Society (supra) should also apply to areas
covered by local self-governing bodies and statutory development               G
authorities. We are inclined to allow the state governments to make this
determination since it is a question of fact as to whether an area covered
by a local self-governing body is proximate to a municipal agglomeration
or is sufficiently developed as to warrant the application of the
5
    Special Leave Petition (C) No 19845/2017                                   H
670              SUPREME COURT REPORTS                         [2018] 1 S.C.R.


A     same principle. In deciding as to whether the principle which has been
      set down in the order dated 11 July 2017 should be extended to a local
      self-governing body (or statutory development authority) the state
      governments would take recourse to all relevant circumstances including
      the nature and extent of development in the area and the object underlying
      the direction prohibiting the sale of liquor on national and the state
B
      highways. The use of the expression ‘municipal areas’ in the order
      dated 11 July 2017 does not prevent the state governments from
      making that determination and from taking appropriate decisions
      consistent with the object of the orders passed by this Court. We
      leave it open to individual licensees to submit their representations to
C     the competent authorities in the state governments if they are so advised
      upon which appropriate decisions may be taken by the state governments.
      We have issued this general direction to obviate both litigation before the
      High Courts and repeated recourse to applications to this Court.
             9. With the above observations, the MAs/IAs shall stand disposed
D     of.


      Devika Gujral                                         Applications disposed of.



E




F




G




H


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Liquor"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.