Liquor Shops and The Legal Principles Affecting the Shops

Liquor Shops and The Legal Principles Affecting the Shops

In a recent Judgment petition was filed for quashing the communication dated 27.04.2016 issued by the Joint Secretary to the Government of Assam, Excise Department vide which State Govt has directed the petitioner to shift his IMFL “OFF” License Shop to any other location on the ground of violation of Rule 183 of the Assam Excise Rules, 1945. The petitioner also sought appropriate directions that the petitioner may be permitted to continue to run the IMFL “OFF” License Shop in the name and style of “M/s Rishi’s Wine Hut” from the existing location at Bora Marketing Complex, R.G. Baruah Road, Guwahati.

Excise Rules and Its Application

Assam Excise Rules, 1945 have been superseded by the Assam Excise Rules, 2016. 

The record revealed that the respondent No.6 [which was an educational institution] had filed an affidavit-in-opposition supporting the impugned order dated 27.04.2016 and stating inter alia that the petitioner's IMFL “OFF” License Shop cannot be allowed to be continue in view of the violation to Rule 183 of the Assam Excise Rules, 1945. It is interesting to take note of that in the said affidavit-in-opposition filed by the respondent No.6, the permission for the respondent No.6 to run its educational institution issued by the Assam Higher Secondary Council, Bamunimaidan, dated 22.04.2002 had been enclosed. A perusal of the said permission reveals that the respondent No.6 was permitted to run its educational institution at R.G. Baruah Road, Guwahati with a condition that the said educational institution would be shifted to its own building constructed in its own land within 3 years, failing which permission shall be withdrawn.

At this stage, it was also noted that the respondent No.6 was granted permission to run an educational institution at Ahomgaon, Kotakipara Road, Guwahati-781035 and this permission has been continued from time to time. However, there is nothing on record that after the lapse of three years from the date the permission was granted to respondent No.6, i.e. on 22.04.2002, any further extension was granted by the Assam Higher Secondary Education Council to the respondent No.6 to continue its junior college at R.G. Baruah Road, Guwahati-781005.

Court finds it pertinent to note that Rule 289 of the Rules of 2016 would show that no IMFL and Beer retail 'OFF' license or retail `ON' license shall be established in a Municipal Corporation area within a distance of 50 meters in the Municipality and Town Committee area; within a distance of 100 meters in Gaon Panchayat or equivalent body areas and within a distance of 150 meters from any place of public worship or educational institution or hospital. The said Rule further stipulates as to what would be an educational institution for the purpose of the said Rule. It is stipulated that an educational institution for the purpose of the said Rule would mean a Primary School, Middle School and a High School recognized by the State Government or the Central Government or any College affiliated to any University establishment by law, but does not include any private coaching or tutorial institution.

It is further apposite to take note of the proviso to Sub-Rule (2) of Rule 289 of the Rules of 2016 in as much as in terms with the said proviso even when any place of public worship or educational institution or hospital comes into existence subsequent to the establishment of the licensed premises, the aforesaid distance provisions shall apply, subject to the provisions that the licensee shall be given a reasonable opportunity to shift or relocate his premises. 

It was held that in this case admittedly, the petitioner's license was issued in the year 1998 and the respondent No.6 had opened its unit of the educational institution in the year 2002. Therefore, by virtue of the said proviso to Sub-Rule (2) of Rule 289 of the Rules of 2016, the petitioner would be required to shift, provided the respondent No.6’s branch would come within the ambit of an educational institution recognized by the State Government or the Central Government or a college affiliated to any University established by law.

Another point noted was that Assam Non-Governmental Educational Institutions (Regulation and Management) Act, 2006 and the Assam Non-Governmental Educational Institutions (Regulation and Management) Rules, 2007 which stipulate that permission is required for establishment of a Non-Governmental Educational Institution and registration. A further perusal of the Assam Non-Governmental Educational Institutions (Regulation and Management) Rules, 2007 would show that a Non-Governmental Educational Institution is also required to provide various details as to its building and its campuses.

The permission in this case granted to the respondent No.6 [Educational Institution] to run its branch at Bora Market, R.G. Baruah Road was only for a period of three years with a further stipulation that if the said branch is not shifted to the respondent No.6’s own building constructed on its own land, the said permission would be withdrawn. Nothing has been brought on record to show that the respondent No.6 thereupon took steps for shifting its branch to its own building constructed upon its own land within the time so permitted as well as the permission so accorded earlier was extended.

It was concluded that such institute would not be a recognized educational institute and petitioner can carry on the shop of IMFL at the current location. Consequently order of authorities was set aside.

For details refer  Jiyanta Baruah v. State of Assam [2025] GCtR 1690 (Gauhati).