The Odisha High Court, while setting aside the Government order, which mandated the furnishing of bank guarantees directed the State Government to renew liquor licenses on the production of the Solvency certificate and fulfillment of other conditions.
The total of 162 writ petitions were filed challenging the letter addressed by the Additional Secretary to Government, Government of Odisha, Department of Excise to the Excise Commissioner, Odisha conveying that the Revenue and Disaster Management Department as per their order, wherein it was decided to phase out the issue of Solvency Certificate by Revenue Authorities for grant or renewal of excise licenses and therefore insisted on producing for Bank Guarantee in lieu thereof for renewal and issuance of the license.
The Counsel for the petitioners submitted that the Government of Orissa by the aforesaid letter dated March 30, 2020, cannot supersede or override the statutory provisions contained in Rule 51 and Rule 150 of the Rules Odisha Excise Rule 2017.r
Rule 150 of the Rules of 2017 also provides for furnishing Solvency certificate for the license of retail vendors of IMFL, country spirit, fermented Tari, Pachwai, and Bhang. It is contended that the Rules of 2017 have been framed by the State Government in exercise of powers conferred upon it under Section 90 read with Section 94 of the 2008 Act, which have been published in the Odisha Gazette dated March 10, 2017.
However, the Advocate General appearing for the State opposed the writ petitions and invited the attention of the court order of Government in its Revenue & Disaster Management Department dated January 02, 2020, to argue that a policy decision has been taken to phase out the practice of issuing the Solvency certificates as it consumes a significant amount of time of both of the citizens and the Revenue Officers.
The division bench headed by the Chief Justice, Mohammad Rafiq held that the statutory prescription enumerated in the statutory Rules namely; Rule 51 and Rule 150 of the Rules of 2017 and Rule 3 and Rule 4 of the Certificate Rules, cannot be overridden by a mere executive order issued by the Revenue& Disaster Management Department dated January 02, 2020.
“The impugned order dated 30.03.2020 is quashed and set aside. Interim orders passed in all the writ petitions except W.P.(C) Nos.16585, 16748, 16798, 16815, 17599, 17614, 17691, 17635, 17680, 17681, 17696, 17697, 17780 & 17789 of 2020, directing the authorities to renew the licenses of the petitioners on the production of the Solvency certificate, subject to fulfillment of other conditions are made absolute. Such order shall also obtain in all other writ petitions,” the bench said.
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