High Court issues notice on plea alleging tailor-made criterion

Tribune News Service

Saurabh Malik

Chandigarh, June 18

Acting on a petition alleging tailor-made criterion for running duty paid liquor shops at the Chandigarh International Airport, the Punjab and Haryana High Court has permitted the present contractor to continue and operate for the time being. “No adverse order shall be passed without the permission of this Court,” the Bench has asserted.

Running Duty paid liquor shops at Chandigarh International Airport

Fixing July 28 for further hearing the petition filed by M/S Liquor World Venture Private Limited, the Bench also made it clear that the State of Punjab could invite tenders. But the applicants would be informed about the litigation pending before the High Court.

The Bench of Justice GS Sandhawalia and Justice Vikas Suri asserted this was essential so that the applicants were put to notice regarding the facts of the litigation and their bids would be subject to final orders and “it will be at their risk and cost”.

The directions and notice to the respondents came after the petitioner’s counsel, Kunal Mulwani, and Abhinav Gupta contended that a clause introduced vide Excise Policy of 2022-23 imposed onerous condition of having two years of minimum experience of running a duty paid liquor retail store inside the terminal building of an airport in India. Another condition was of a minimum average annual turnover of Rs 10 crore from the financial year 2018.

It was added that the clause was under challenge following its tailor-made conditions. A limited number of persons would have two-year experience. Even the petitioner could not operate the liquor vends at the airport during Covid-19, following which a supplementary agreement was entered into, giving a right to run the store up to 2027.

The counsel added there was, as such, a right to run the liquor vends within the airport for the prescribed period as per the agreement entered into, which was now being encroached upon by the policy as such.

The Bench was also told that a clause in the Excise Policy 2019-20 provided for granting licences of leases at airports on the annual fee of Rs 10 lakh with the condition that permission would be taken from the airport authority.

They added CHAIL, a joint venture company floated by the Government of India, Punjab Government and the Haryana Government, had invited a tender for operation of duty paid liquor shops at three sites. The licence was for five years and technical qualification was also specified.

A letter of intent for five years was awarded to the petitioner vide communication dated January 20, 2020, and the monthly licence fee was Rs 24,06,935. The bank guarantee of Rs 1,44,42,000 valid till February 8, 2025, was also furnished. By way of supplementary licence agreement following Covid-19, the period was extended by another two years.

What the petitioner says

The directions and notice to the respondents came after the petitioner contended that a clause introduced vide Excise Policy of 2022-23 imposed onerous condition of having two years of minimum experience of running a duty paid liquor retail store inside the terminal building of an airport in India. Another condition was of a minimum average annual turnover of Rs 10 crore from the financial year 2018.

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