IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH THURSDAY, THE TWENTY FOURTH DAY OF JULY TWO THOUSAND AND FOURTEEN Present HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.12732 of 2014 Between:
M/s. S.P.Y. Agro Industries Ltd., New Industrial Estate, Sy.No.446 to 449, APIIC, Udumulpur, Nandyal, Kurnool District, Rep. by its Managing Director, S. Sreedhar Reddy, S/o.S.V. Lakshmi Reddy, R/o. Nandyal, Kurnool District.
.. Petitioner AND Government of Andhra Pradesh, Revenue (Excise – III) Department, Secretariat, Hyderabad, Rep. by its Principal Secretary to Government & another .. Respondents The Court made the following:
HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.12732 of 2014 ORDER:
A Letter of Intent, granted earlier on 20.10.2008 for a period of four (4) years, was extended periodically and the last of such extensions was granted on 17.04.2013 valid upto 19.04.2014. In accordance with the letter of intent, on 05.10.2013 the petitioner applied to the Commissioner of Prohibition and Excise, Hyderabad (2nd respondent) on 07.03.2014 to grant licence under Rule 6 of the A.P. Distillery (Manufacture of Indian Made Foreign Liquors other than Beer and Wine) Rule, 2006 (hereinafter called as ‘2006 Rules’). The request of the petitioner to grant licence was not acceded to on the ground that the Rules were amended before the letter of intent granted in favour of the petitioner was extended and the petitioner was called upon to pay an additional sum of approximately Rs.51 crores. Aggrieved by the said demand, the petitioner instituted W.P.No.10823 of 2014. In W.P.M.P.Nos.13586 and 13587 of 2014, this Court passed orders on 09.04.2014 directing consideration of the application submitted by the petitioner for grant of licence in accordance with Rule 6 of the 2006 Rules without insisting for payment of additional sum of approximately Rs.51 crores. This Court directed the petitioner to file an undertaking in the form of an affidavit to abide by the result of the writ petition with reference to the demand for payment of an additional sum of approximately Rs.51 crores. The statement was also made on behalf of the department that the issue would be examined by the Commissioner. Quite contrary to the directions issued by this Court, the Commissioner of Prohibition and Excise, Hyderabad (2nd respondent) passed orders on 17.04.2014 holding that unless the difference of amount is paid as demanded, the question of granting of licence would not arise.
2. Learned counsel for the petitioner submits that this order of the Commissioner, on the face of the order passed by this Court in W.P.No.10823 of 2014 is contemptuous and is ex facie illegal.
3. When the matter is taken up for consideration, learned Advocate General submits that prima facie, the order of the Commissioner, dated 17.04.2013, was erroneous and requires re-consideration. But, since the letter of intent issued by the Government on 17.04.2014 has expired on 19.04.2014 and since as on today, there is no letter of intent, the Commissioner has no competency to grant the licence and, therefore, it is desirable for the petitioner to submit a representation to the Government for extension of letter of intent and as and when such an application is submitted by the petitioner, the Government would consider the request favourably.
4. In view of the suggestion made by the learned Advocate General, the learned counsel for the petitioner submits that the petitioner would be advised to submit a representation to the Government requesting for grant of extension of letter of intent granted on 17.04.2013 for a further period. He further submits that order of Commissioner being unsustainable, it has to be set aside.
5. The order passed by the Commissioner of Prohibition and E x c i s e , Hyderabad (2nd respondent), in Cr.No. B3/1076/2008/CDB/Ex., dated 17.04.2014, in the teeth of orders of this Court, dated 09.04.2014, in W.P.M.P.Nos.13586 and 13587 of 2014 in W.P.No.10823 of 2014 is illegal. It is hereby set aside and the Writ Petition is allowed. The petitioner is granted liberty to make a representation to the Government of Andhra Pradesh seeking extension of letter of intent granted on 17.04.2013 for a further period, on submission of such representation by the petitioner, the Government shall pass appropriate orders, as expeditiously as possible, at any rate within two (2) weeks regarding extension of letter of intent and on grant of extension of letter of intent, the Commissioner shall consider and pass orders regarding issuance of certificate of licence strictly in terms of the directions issued by this Court in W.P.M.P.Nos.13586 and 13587 of 2014 in W.P.No.10823 of 2014, dated 09.04.2014, within a period of one (1) week thereafter. There shall be no order as to costs. Miscellaneous Petitions, if any, pending in this writ petition shall stand closed.
P.NAVEEN RAO, J Date: 24th July, 2014 KL HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.12732 of 2014 Date: 24th July, 2014