Law: Punjab Excise Act, 1914

Section: 43

(Punjab Excise Act (I of 1914)].......S 43 read with r. 5.12, Punjab Liquor Licence Rules-Rule S 12 not mere direction-Refusal to renew licence must be preceded by issue of notice to licensee in terms of r. 5.12-Government's omission to make a valid order of refusal-Implies decision to renew-Licensee has no right to "claim" renewal in view of S. 43-[Muhammad Asghar v. Excise and Taxation Commissioner, Punjab, Lahore P L D 1955 Lah. 167 dissented from]. The provisions of rule 5.12, Punjab Liquor Licence Rules, are not "mere directions" to guide the subordinate while dealing with cases where Government wants to refuse renewal of a licence. If the Government proposes not to renew a licence, it must give a notice to the licensee before the 20th of January, by which date the Government must take a final decision after taking into con­sideration objections if any lodged by the Licensee. Rule 5.12 is not in conflict with section 43, Punjab Excise Act, 1914 ; it does not derogate from the absolute discretion of Government not to renew a licence. Both of them not only stand side by side, but in fact the latter supplements the former by laying down the procedure for the exercise of the discretion vested in the Government not to grant or renew a licence, permit or pass. A person may have no right to claim renewal of a licence, but it does not follow that rules cannot provide for regulating the exercise of the discretion vested in the Government to refuse to grant the renewal. The Government has the right not to renew a licence, but it does pot take away the right of the licensee to make a represen­tation against the proposed decision which might on merits persuade the Government to change its determination. Where the Government omits to make a valid order not to renew a licence there is no provision in the. Act or the rules which applies to such a situation, unless it may be inferred by necessary implication that if the Government omits to decide not to renew a licence it amounts to a decision to renew it. In that view the licensee may be entitled to pay the requisite vend-fee and continue selling liquor in accordance with the terms of the existing licence as long as the…

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