VidhiSangh

Supreme Court of India · 12/02/2019

INTERNATIONAL SPIRITS AND WINES ASSOCIATION OF INDIA versus STATE OF HARYANA AND OTHERS

[2019] 3 S.C.R. 234 · 2019 INSC 178

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

By majority, the Court struck down Haryana’s amended rule providing for a single statewide L-1BF licence for imported bottled foreign liquor. The Financial Commissioner’s regulatory power did not authorize determining the number of licences for the whole State in derogation of powers reserved to the State Government. The majority left the other challenges undecided. K.M. Joseph J. dissented, reading the regulatory power more broadly and rejecting the constitutional objections subject to observations on safeguards.

Issues

  1. Whether the Financial Commissioner could frame the rule requiring one statewide L-1BF licence.
  2. Whether the resulting exclusive licence and alleged risks of unfair dealing were constitutionally invalid.

Provisions considered

Held

Result

Appeal allowed by majority; amended Rule 24(i-eeee) struck down as ultra vires the Financial Commissioner’s powers. K.M. Joseph J. dissented and would have dismissed the appeal subject to his observations.

Judgment PDF: Supreme Court of India, [2019] 3 S.C.R. 234.