High Court breather for Wine Merchants’ Association

Mumbai, March 17 The Maharashtra Wine Merchants’ Association got a breather from the Bombay High Court on Monday after the court stayed a state government circular which states that shifting of licences cannot be done without prior permission from the government.
Petitioners state that due to this circular the Collector of Mumbai has not granted permission for certain members of the association for shifting of their FL-II license.
The association states that many of their members were forced to shift their FL-II premises on account of road widening or redevelopment for which they were being made to pay 100 per cent of the license fee. The association had challenged this rule as the shifting was involuntary and not for profit.
Advocate for petitioners, Jimmy Pochkhanawalla, argued that such an exorbitant amount amounting to lakhs cannot be charged as the shifting is involuntary.
Pochkhanawalla also submitted that as per Supreme Court judgment even if it is voluntary shifting, 100 per cent license fee cannot be recovered as the government is not providing any services.
According to the petition, in April 2005 the state government by a notification added a new sub rule to rule 25 of the Bombay Foreign Liquor Rules regarding prohibition to shift licensed shop to any other places.
In June, the government through a notification substituted Rule 4 of Bombay Prohibition (Privilege fee) Rules 1954 wherein fees for transfer of license from one site to another within the district was fixed equivalent to the fees for grant or renewal of license.
Subsequently, the Commissioner of State Excise issued circular stating that shifting of licence amounts to grant of new license in that area.
In October 2005, the state government again issued a circular stating all cases of shifting should not be done without prior approval of government.
This circular prevented the Collector from granting permission for shifting of license which the petitioners challenged in court.
According to Pochkhanawalla, a division bench of Justice S B Mhase and Justice V K Tahilramani has admitted the petition and granted interim relief in cases where merchants have been shifted involuntarily.
Expressindia.com; Express news service
Posted online: Tuesday , March 18, 2008