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Supreme Court of India

KERALA STATE TODDY SHOP CONTRACTORS ASSOCIATIONversusT.N. PRATHAPAN, MLA & ORS.

Citation
2014 INSC 998
Decided
1 September 2014
Disposal
Appeal(s) allowed

Holding

A court cannot declare a rule ultra vires or discriminatory without a proper challenge and specific pleading; the High Court’s declaration of the 2002 Rules as unconstitutional is set aside.

Summary

The Kerala State Toddy Shop Contractors Association filed a public interest litigation challenging the Kerala High Court's order that, on the basis of Rule 28A of the Foreign Liquor (Compounding, Blending and Bottling) Rules, 1975, the State could not permit sale of Indian Made Foreign Liquor on the first day of any English calendar month. The High Court also declared Rule 7(11)(vii) of the Kerala Abkari Shops Disposal Rules, 2002, which allowed toddy shops to operate on that day, discriminatory and ultra vires. The Supreme Court held that the petition did not challenge the 2002 Rules, nor did it plead any constitutional violation, and therefore the High Court had no jurisdiction to declare those rules unconstitutional. The Court emphasized that a party must specifically plead and prove a rule to be violative of Articles 14/16 before a court can strike it down. Consequently, the High Court’s declaration was set aside and the appeals were allowed.

Issues considered

  • Whether a High Court exercising jurisdiction under Article 226 can, suo motu, declare another statutory rule unconstitutional and discriminatory without a specific challenge and without impleading the affected parties.

Legislation cited

Subjects

Article 226judicial reviewultra viresdiscriminatory ruleKerala Abkari ActForeign Liquor Rulespublic interest litigationmandamus

Judgment

                     [2014] 7 S.C.R. 589


     KERALA STATE TODDY SHOP CONTRACTORS                             A
                  ASSOCIATION
                                v.
              T.N. PRATHAPAN, MLA & ORS.
          (Civil Appeal Nos. 8895-8896 OF 2014)
                                                                     B
                   SEPTEMBER 01, 2014

       [DIPAK MISRA AND VIKRAMAJIT SEN, JJ.]

      Foreign Liquor (Compounding, Blending and Bottling),
 Rules t'975: r. 28A - Writ petition filed beforeHigh Court C
 highlighting the grievance that as perr.28A of the Rules of
 1975 framed under Kera/a Abkari Act, the licenced premises
 for sale of liquor in respect of the licences issued under the
 Rules are required to remain closed on the days specified in
 the Rules but the State of Kera/a and its functionaries, in D
 violation of r. 28A, had issued orders to allow the sale of IMFL
 on 1st of September, 2009 from the licensed premises which
 was totally unlawful - High Court was required to interpret r.28A
 of the Rules - While disposing of the writ petition, High Court
 declared r. 7(11 )(vii) of Kerela Abkari Shops Disposal Rules E
 2002 by virtue of which toddy shops were allowed to function
 on 1st of September, 2009 as discriminatory and
 unreasonable - On appeal, held: Suo motu· assumption of
jurisdiction by High Court was totally uncalled for - High Court
 fell ihto grave error by declaring another Rule as F
 discriminatory - The judgment of the High Court, as far as it
 declares the 2002 Rules as ultra vires in respect of the toddy
shops being kept open on the first day of all English Calendar
month is set aside - Kera/a Abkari Act - s. 71.
     Constitution of India, 1950: It is a settled principle of law   G
that a person who assails a provision to be ultra vires must
plead the same in proper perspective - While interpreting the
effect and impact of a particular rule relating to a different
                               589                                   H
     590     SUPREME COURT REPORTS                 [2014] 7 S.C.R.


A sphere, the High Court in exercise of its power under Article
     226 of the Constitution, cannot declare another rule as
     unconstitutional without any challenge to the same and further
     without impleading the affected parties even in representative
     capacity.
B.     A PIL was filed before the High Court under Article
  226 of the Constitution of India highlighting the grievance
  that as per Rule 28A of the Foreign Liquor
  (Compounding, 8'.lending and Bottling), Rules 1975
  framed under Kerala Abkari Act, the licenced premises for
C sale of liquor in respect of the licences issued under the
  Rules are required Ito remain closed on the days specified
  in the Rules but tho State of Kerala and its functionaries,
  in violation of Rule 28A, had issued orders to allow the
  sale of Indian Made Foreign Liquor (IMFL) on 1st of
D September, 2009 from the licensed premises which was
  totally unlawful.
          The High Court referred to Rule 28A of the Rules and
     took note of Section 71 of the Kerala Abkari Act and
     opined that unless Rules are amended, the Government
E    is bound to direct the IMFL shops to be closed on
     01.09.2009. The High Court took note of the prescription
     made under Rule 7'(11) (vii) of the Kerala Abkari Shops
     Disposal Rules, 2002 (2002 Rules) wherein a proviso was
     incorporated in 2003 by virtue of which the toddy shops
F    were allowed to function on the first day of English
     calendar month. The High Court opined that the proviso
     appended to the said Rule was directly contrary to the
     main Rule and created a discrimination between the sale
     of IMFL and toddy shops and therefore the exemption
G    granted under the proviso to 2002 Rule was
     discriminatory as there was no apparent rationale or logic
     for having different standards in respect of IMFL and
     toddy shops. Being of this view, _the High Court issued a
     writ of Mandamus restrai_ning the respondent-State and
H    its functionaries from departing or deviating from the
    KERALA STATE TODDY SHOP CONTRACTORS              59.1
       ASSOCIATION v. T.N. PRATHAPAN, MLA
existing ban of opening the licensed premises for the A
liquor as provided under Rule 28A of the Rules, i.e. the
ban prohibiting the first day of the English calendar
month; 1st September, 2009. The High Court further
directed the State Government to pass orders in case of
toddy shops to remain closed on 1st September, 2009. s
The issue for consideration was whether, while
interpreting the effect and impact of a particular rule
relating to a different sphere, the High Court in exercise•
of its power under Article 226 of the Constitution, can
declare another rule as unconstitutional without any C
challenge to the same and further without impleading the
affected parties even in representative capacity.
    Allowing the appeals, the Court

     HELD: 1. A perusal of Rule 28A of Foreign Liquor D
(com·pounding, Blending and Bottling Rules, 1975)
showed that licensed premises for sale of liquor are
required to remain closed on the first day of all English
calendar month. There can be no dispute that first
September is the first day of English calendar month for E
the purpose of IMFL shops. The High Court opined that
unless the Rules are amended, no· notification, contrary
to the rules, could be issued. As far as this aspect was
concerned, there was no challenge by any vendor
dealing with IMFL. What was assailed before this Court
                                                             F
was the view expressed by the High Court as regards
Rule 7(11 )(vii) of the 2002 Rules. The said Rule was
declared discriminatory. In the writ petition, there was no
assail to the 2002 Rules. There was no pleading in that
regard and no relief was sought on that score. In the
absence of any assertion how a particular provision G
offends any of the Articles of the Constitution, the same
cannot be adverted to. It is a settled principle of law that
a person who assails a provision to be ultra vires must
plead the same 'in proper perspective. In the case at
hand, the High Court was required to interpret Rule 28A H
    592      SUPREME COURT REPORTS                [2014] 7 S.C.R.


A of the Rules. Under such circumstances, the High Court
  fell into grave error by declaring another Rule as
  discriminatory and unreasonable. Suo motu assumption
  of jurisdiction in this regard was totally uncalled for and,
  therefore, that made the judgment and order declaring the·
B 2002 Rules as discriminatory sensitively susceptible. The
  judgment and order of the High Court, as far as it declares
  the 2002 Rules as ultra vires in respect of the toddy shops
  being kept open on the first day of all English Calendar
  month is set aside. [Paras 6, 7, 9, 13 to 15] [595-A-E, H;
c 597-C-G]
      State of Uttar Pradesh V. Kartaar Singh AIR 1964 SC
  1135: 1964 SCR 679; State of Andhra Pradesh & Anr. V. K.
  Jayaraman & Ors. AIR 1975 SC 633; Union of India V. E.l.D. ·
  Parry (India) Ltd. AIH 2000 SC 831: 2000 (1) SCR 537; State
D of Haryana V. State of Punjab & Anr. (2004) 12 .sec 673:
  2004 (2) Suppl. SCR 849 - relied on.

                         Case Law Reference:

          1964 SCR 679                Relied on        Para 9
E
          AIR 1975 SC Ei33            Relied on        Para 10

          2000 (1) SCR 537            Relied on        Para 11

          2004 (2) Suppl. SCR 849     Relied on        Para 12
F
        CIVIL APPELLATE JURISDICTION : Civil Appeal No ..
    8895-8896 of 2014.

       From the Judgment and order dated 28-08-2009 of the
  High Court of Kerela at Ernakulam in Writ Petition(c) No. 24769
G of 2009(s) and in Vl/rit Petition No. 24962 of 2009.

                               WITH

        Civil Appeal Nos. 8897-8898, 8899-8900, 8901-8902 &
    8903-8904 of 2014.
H
     KERALA STATE TODDY SHOP CONTRACTORS                        593
        ASSOCIATION v. T.N. PRATHAPAN, MLA
    C.S Rajan, V.K. Biju, Gaurav Srivastava, G. Prakash, Roy            A
Abraham, Himinder Lal, A. Raghunath, E.M.S. Anam, Jogy
Scaria, K. Rajeev for the Appearing Parties.

     The Judgment of the Court was delivered by

     DIPAK MISRA, J. 1. Leave granted.                                  B

     2. A batch of public interest litigation was filed before the
High Court of Kerala at Ernakulam under Article 226 of the
Constitution of India highlighting the grievance that as per Rule
28A of Foreign Liquor (Compounding, Blending and Bottling),             c
Rules 1975 (for breyity 'the Rules') framed under Kerala Abkari
Act (for brevity 'the Act'), the licenced premises for sale of liquor
in respect of the licences issued under the Rules are required
to remain closed on the days specified in the Rules but the State
of Kerala and its functionaries, in violation of Rule 28A, had          D
issued orders to allow the sale of Indian Made Foreign Liquor
("IMFL" for short) on 1st of September, 2009 from the licensed
premises which was not legitimate in law and totally unlawful.

     3. As the factual matrix would uncurtain, the High Court
referred to Rule 28A of the Rules and took note of Section 71           E
of the Act and opined that unless Rules are amended, the
Government is bound to direct the IMFL shops to be closed on
01.09.2009. At that juncture, the High Court took note of the
prescription made under Rule 7(11) (vii) of the Kera la Abkari
Shops Disposal Rules, 2002 (for short, "the 2002 Rules)                 F
wherein a proviso has been incorporated in 2003 by virtue of
which the toddy shops have been allowed to function on the first
day of English calendar month. The High Court opined that the
proviso appended to the said Rule is directly contrary to the
main Rule and creates a discrimination between the sale of              G
IMFL and toddy shops and hence, the exemption granted under
the proviso to 2002 Rules is discriminatory as there is no
apparent rationale or logic for having different standards in
respect of IMFL and toddy shops. Being of this view, the High
                                                                        H
    594          SUPREME COURT REPORTS               [2014] 7 S.C.R.


A   Court issued a writ of Mandamus restraining the respondent-
    State and its functionaries from departing or deviating from the
    existing ban of opening the licensed premises for the liquor as
    provided under Rule .28A of the Rules, i.e. the ban prohibiting
    the first day of the English calendar month; 1st September,
B   2009. Quite apart from that, the High Court further directed the
    State Government to pass orders in case of toddy shops to
    remain closed on 1st September, 2009. The said judgment and
    order is under assail in the present batch of appeals by the
    Kerala State Toddy Sl1op Contractors Association and others.
c       4. We have heard learned counsel for the parties and
    perused the record.

          5. Rule 28A of the Rules reads as follows:

          "28A The licensed premises for sale of liquor in respect
D
          of all the licence8 under these rules shall remain closed
          on the following days:

           (i)     Birthday of Mahatma Gandhi,

E          (ii)    Birthday of Sree Narayan Guru,

           (iii)   Commemoration day of Mahatma Gandhi,

           (iv)    Samadhi day of Sree Narayana Guru,

F          (v)     The days of poll and two days preceding the day
                   of the Gene!ral Election or Bye-election and on the
                   day counting of votes and the day succeeding
                   thereto.

           (vi)    The day of poll and the day preceding that day of
                   the elections/bye-elections day the Corporation/
                   Municipal Wards/Panchayat Constituencies and in
                   the day of counting of votes and the day
                   succeeding thereto.

           (vii)   The first day of all English calendar month."
   KERALA STATE TODDY SHOP CONTRACTORS               595
ASSOCIATION v. T.N. PRATHAPAN, MLA [DIPAK MISRA, J.]

      6. On a perusal of the said Rule, it is luminous that licensed   A
premises for sale of liquor are required to remain closed on
the first day of all English calendar month. There can be no
dispute that first September is the first day of English calendar
month for the purpose of IMFL shops. As is evincible, an
apprehension was expressed before the High Court that the              B
State Government was inclined to issue a notification to
overlook the said date. It was contended on behalf of the State
that the Government has power to issue notification under
Section 71 of the Act. The High Court, as has been stated
herein-before, opined that unless the Rules are amended, no            c
notification, contrary to the rules, could be issued. As far as this
aspect is concerned, there has been no challenge by any
vendor dealing with IMFL.

     7. What is assailed before this Court is the view
expressed by the High Court as regards Rule 7(11) (vii) of the         D
2002 Rules. The said Rule has been declared discriminatory.
At the very outset, it is necessary to state that though various
grounds have been asseverated with regard to the justifiability
of the 2002 Rules, regard being had to the provisions contained
in the Act and the definition of toddy as finds place in Section       E
3(8) of the Act and the difference between toddy and the IMFL,
we are not inclined to dwell upon the same.

      8. The seminal issue for consideration is whether, while
interpreting the effect and impact of a particular rule relating to F
a different sphere, the High Court in exercise of its power under ·
Article 226 of the Constitution, can declare another rule as
unconstitutional without any challenge to the same and further
without impleading the affected parties even in representative
capacity.
                                                                       G
     9. As is evident, in the writ petition, there was no assail to
the 2002 Rules. There was no pleading in that regard and no
relief was sought on that score. In this context, we may
profitably notice the observations of this Court in State of Uttar
                                                                       H
    596       SUPREME COURT REPORTS                    [2014] 7 S.C.R.


A Pradesh V. Kartaar Singh 1 , wherein while dealing with the
  constitutional validity of Rule 5 of the Food Adulteration Rules,
  1955, the Court opined thus:

          "(15) ..... if the rule has to be struck down as imposing
          unreasonable or discriminatory standards, it could not be
B
          done merely on any a priori reasoning but only as a result
          of materials placE~d before the Court by way of scientific
          analysis. It is obvious that this can be done only when the
          party invoking the protection of Art. 14 makes averments
          with details to sustain such a plea and leads evidence to
c         establish his allegations. That where a party seeks to
          impeach the validity of a rule made by a competent
          authority on the ground that the rules offend Art. 14 the
          burden is on him to plead and prove the infirmity is too well
          established to need elaboration."
D
       10. In State of AnJhra Pradesh & Anr. V. K. Jayaraman
  & Ors2. , it has been observed that when an averment is made
  that a particular Rule is invalid for violating Articles 14 and 16
  of the Constitution, relevant facts showing how it is
E discriminatory ought to have been set out.

        11. In Union of India V. E.l.D. Parry (India) Ltd3. , a two-
    Judge Bench has observed thus:

          ''There was no pleading that the Rule upon which the
F         reliance was placed by the respondent was ultra vires the
          Railways Act, 1as10. In the absence of the pleading to that
          effect, the trial Court did not frame any issue on that
          question. The High Court of its own proceeded to consider
          the validity of the l~ule and ultimately held that it was not in
G         consonance with the relevant provisions of the Railways
          Act, 1890 and consequently held that it was ultra vires. This
          view is contrary to the settled law... "
    1.   AIR 1964 SC 1135.
    2.   AIR 1975 SC 633.
H 3. AIR 2000 SC 831.
   · KERALA STATE TODDY SHOP CONTRACTORS             597
ASSOCIATION v. T.N. PRATHAPAN, MLA [DIPAK MISRA, J.]

     12. In State of Haryana V. State of Punjab & Anr4.                    A
reiterating the principle, this Court has held that:

      " ..... merely saying that a particular provision is legislatively
      incompetent [ground (ii)] or discriminatory [ground (iii)] will
      not do. At least prima facie acceptable grounds in support
                                                                           8
      have to be pleaded to sustain the challenge. In the
      absence of any such pleading the challenge to the
      constitutional validity of a statute or statutory provision is
      liable to be rejected in limine."

     13. From the aforesaid authorities, it is clear as day that           C
in the absence of any assertion how a particular provision
offends any of the Articles of the Constitution, the same cannot
be adverted to. It is a settled principle of law that a person who
assails a provision to be ultra vires must plead the same in
proper perspective.                                                        D

     14. As we find in the case at hand, the High Court was
required to interpret Rule 28A of the Rules. Under such
circumstances, the High Court has fallen into grave error by
declaring another Rule as discriminatory and unreasonable.
Suo motu assumption of jurisdiction in this regard is totally              E
uncalled for and, therefore, that makes the judgment and order
declaring the 2003 Rules as discriminatory sensitively
susceptible.

     15. Consequently, the appeals are allowed and the                     F
judgment and order of the High Court, as far as it declares the
2002 Rules as ultra vires in respect of the toddy shops being
kept open on the first day of all English Calendar month is set
aside. There shall be no order as to costs.
                                                                           G
Devika Gujral                                          Appeals allowed.




4.   (2004) 12 sec 673.


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