Trichur Tourist Complex Private Limited Vs Excise Commissioner (Kerala High Court)
The Kerala High Court decided two writ petitions challenging fines and fees imposed under the Abkari Act, 1077 and Foreign Liquor Rules, 1953.
In W.P.(C) No.16156 of 2022, the petitioner company operated under an FL-3 licence until 31.03.2014. The authorities found that its Board of Directors had been reconstituted without prior permission and imposed a conditional licence requirement of ₹26.5 lakh under Section 67(2) of the Act. The Court held that, in the absence of an actual change of ownership, Section 67 was not attracted. It relied on United Breweries Limited v. State of Kerala & Ors. [2024 (7) KHC 593], which had also been confirmed by the Division Bench. The Court allowed the petition, set aside the Section 67(2) demand concerning the reconstitution and directed refund of any excess payment within three months.
In W.P.(C) No.19829 of 2023, a partnership firm had undergone six reconstitutions without prior sanction, which it stated were family arrangements without change of ownership. An order demanded ₹63 lakh under various provisions. The Court set aside the Section 67(2) fines because there was no actual change of ownership.
The Court also considered a ₹20 lakh fee under Rule 19(iv). Since the relevant proviso to Rule 19(iv) had been deleted with effect from 01.04.2018, the Court held that the fee could not be demanded when the regularisation order was issued on 02.06.2023. Relying on KSR Alankar Hotels and Resort Pvt. Ltd. v. State of Kerala [2024 (4) KLT 47], it held that the law existing when the regularisation application was considered applied.
