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[Cites 7, Cited by 1]

Patna High Court

Mahadev Carrier Pvt. Ltd vs The State Of Bihar And Ors on 1 April, 2019

Equivalent citations: AIRONLINE 2019 PAT 648, (2019) 3 PAT LJR 740

Author: Jyoti Saran

Bench: Jyoti Saran, Arvind Srivastava

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                      Civil Writ Jurisdiction Case No.2866 of 2019
     ======================================================
     Mahadev Carrier Pvt. Ltd., a company incorporated under the Companies
     Act,1956, having its registered office at 1/34 New Patliputra Colony, P.S
     Patliputra, District Patna-13 through its Director Shri Ravi Kumar , male aged
     about 43 years, S/o Late Chhedi Lal,resident of 1/34, New Patliputra Colony,
     P.S. Patliputra, District Patna-13

                                                                ... ... Petitioner/s
                                       Versus
1.   The State of Bihar through the Principal Secretary, Registration, Excise and
     Prohibition, Government of Bihar, Patna.
2.   The Excise Commissioner, Bihar, Patna.
3.   The District Magistrate, Jamui.
4.   The Superintendent of Police, Jamui.
5.   The Station House officer, Chandramandi Police Station, Jamui.
6.   The State of Jharkhand through the Principal Secretary, Department of
     Excise, Ranchi.
7.   The Jharkhand State Beverage Corporation Limited, UTPAD Bhawan,
     Kanke Road, Ranchi.
8.   Carlsberg India Private Limited, Tupudana Namkum Road, Tupudana,
     Ranchi, through its Manager.

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s       :    Mr. Satyabir Bharti. Adv.
     For the Respondent-State   :    Mr. Vivek Prasad, GP-7
     For Respondent Nos.6 & 7    :   Mr. Arup Kumar Chongdar, Adv.
     For the Respondent No.8     :   Mr. Gyan Shankar, Adv.
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE JYOTI SARAN
             and
             HONOURABLE MR. JUSTICE ARVIND SRIVASTAVA
     ORAL JUDGMENT
     (Per: HONOURABLE MR. JUSTICE JYOTI SARAN)

      Date : 01-04-2019

                    The petitioner prays for issuance of a writ in the

      nature of mandamus directing the respondent authorities in the

      Registration, Excise and Prohibition Department of the

      Government of Bihar (hereinafter referred to as the 'Excise
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         Department')        to    forthwith          release   the   truck   bearing

         Registration No.BR 01 GD 5138 along with 500 cases of

         Tuborg Supreme Strong Premium Beer packed in bottles of

         650 ml/500 ml, owned and manufactured by M/s Carlsberg

         India Private Limited seized by the Station House Officer,

         Chandramandi Police Station in the district of Jamui and

         retained in custody by the 'Excise Department' of the

         Government of Bihar in connection with Chandramandi P.S.

         Case No.93 of 2018 registered for the offences punishable

         under section 30(a) of the Bihar Prohibition and Excise Act,

         2016 (hereinafter referred to as 'the Act').

                       The petitioner also prays for an appropriate

         direction restraining the statutory authorities under 'the Act'

         from initiating any proceeding for confiscation or destruction

         of the consignment in question which, according to the

         petitioner, was being lawfully transported from the licenced

         Warehouse at Ranchi to the Jharkhand State Beverages

         Corporation Warehouse at Deoghar.

                       Facts of the case lie in a very narrow compass and

         as placed on record by Mr. Satyabir Bharti, learned counsel

         appearing for the petitioner, the petitioner is a Transporter and

         has a valid permit for providing transportation service to its
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         client throughout the territory of this country.

                       It is submitted that it is under one such

         arrangement that the petitioner undertook to transport 250

         cases of Tuborg Supreme Strong Premium Beer packed in

         bottles of 650 ml each and 250 cases of Tuborg Supreme

         Strong Premium Beer packed in bottles of 500 ml each

         through its vehicle bearing Registration No. BR 01 GD 5138

         from 19C Warehouse of M/s Carlsberg India Private Limited

         situated at Tupudana,               Namkum Road, Ranchi to the

         Warehouse of the Jharkhand State Beverages Corporation

         Limited, Deoghar on the strength of statutory excise

         permits/pass and transport documents.

                       It is the grievance of the petitioner as espoused

         through by Mr. Bharti that it is during this course of

         transportation of the consignment that the driver of the vehicle

         mistakenly entered into the jurisdiction of the State of Bihar

         barely few kilometers of its destination when it was seized by

         the Respondent no.5, Station House Officer, Chandramandi

         Police Station, Jamui along with assisting Constables, inter

         alia, on the allegation that the goods in question were being

         transported in violation of the provisions of section 30(a) of

         'the Act', and an FIR was instituted.
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                       According to Mr. Bharti, despite all explanation

         given by the driver of the vehicle and despite production of

         the documents, the respondent no.5 and his Constables were

         not willing to relent and allow the truck to return to its course

         to reach its destination at Deoghar rather they caused seizure

         of the truck and took the driver into custody after registering

         Chandramandi P.S. Case No.93 of 2018 for alleged violation

         of the provisions of section 30(a) of 'the Act'.

                       Mr. Bharti has placed on record the GPS Data vide

         Annexure 4 to the supplementary affidavit to demonstrate the

         movement of the truck which all along travelled within the

         territory of the State of Jharkhand but barely few kilometers

         of its destination at Deoghar that it crossed over to the

         territory of the State of Bihar in the district of Jamui when the

         police officials intercepted the truck, took it into custody and

         registered a police case.

                       Learned counsel appearing for the petitioner in

         reference to Annexure 2 series to the writ petition submits that

         the Dispatch Note is dated 24.12.2018 and confirms the name

         of the driver, the date of dispatch, the validity of the dispatch

         note, the details of the goods, the truck number as well as its

         destination at Deoghar depot. He submits that this dispatch
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         note is issued under the authority of the Jharkhand State

         Beverages Corporation Limited and attaches all details which

         confirms to a valid lawful transportation of the goods in

         question.

                       Learned       counsel          next   refers   to   the   Tax

         Invoice/VAT Invoice cum Bill of Supply at running page 27,

         the transport pass at running page 28 and the consignment

         note issued by the petitioner, all dated 24.12.2018 and forming

         part of Annexure 2 series to support the contention of the

         petitioner that the goods were being lawfully transported and

         were meant for supply within the State of Jharkhand in which

         State there was no prohibition of law in force. He submits that

         the truck was seized at 1.20 PM barely few moments before

         the truck could reach its destination.

                       Learned counsel in reference to the FIR at

         Annexure 3 submits that the Officer Incharge admits that the

         driver informed him that the goods were being taken from

         Ranchi to Deoghar but such disclosure was rejected simply on

         grounds that the Prohibition Law was in force in the State of

         Bihar and which prohibits transportation of liquor.

                       Placing the FIR Mr. Bharti contends that even

         when the driver explained about the lawful transportation of
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         the liquor with supporting documents, yet the vehicle was

         seized and the counter affidavit so filed in the case on behalf

         of the Dy. Superintendent of Police, Jamui though admits at

         paragraph 7 that on 27.12.2018 someone came to support the

         transportation with permits along with necessary papers yet

         simply hiding behind the provisions of 'the Act' that the

         respondents have refused to release the vehicle.

                       It is the submission of Mr. Bharti that it is in gross

         abuse of powers that the truck of the petitioner has been

         seized and even if any mistake was committed by the driver of

         the truck to cross over to the territory of the State of Bihar, the

         moment it transpired from the documents, that the goods were

         being lawfully transported, the respondent Jamui District

         Police and the 'Excise Department' should have shown

         prudence to release it immediately rather than harassing the

         petitioner for keeping the goods in seized condition for more

         than three months.

                       The arguments of Mr. Bharti have been contested

         by Mr. Vivek Prasad, learned Government Pleader No.7 who

         simply hides behind the provisions of section 30(a) of 'the

         Act' to defend the illegal action. Mr. Vivek Prasad in an

         attempt to improve the defence has referred to the stand of the
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         Dy. Superintendent of Police who was not even present when

         the alleged seizure took place, to submit that since the driver

         did not produce valid permit that the seizure took place and

         even though papers had been produced on 27.12.2018 but by

         then the police case had already been registered. This is all the

         defence that is put up by Mr. Vivek Prasad in support of the

         impugned action.

                       A pointed query as to what the State in its Excise

         Department did to verify the stand of the petitioner of the

         lawful transportation of the goods since after production of the

         valid permit by the person on 27.12.2018 as admitted at

         paragraph 7 of the counter affidavit filed on behalf of the Dy.

         Superintendent of Police, Jamui, an explanation is given that

         since the matter is under investigation hence the respondents

         did not think it proper to proceed thereafter.

                       Learned counsel has referred to section 14 of 'the

         Act' to submit that movement of intoxicants without a valid

         permit or permission is illegal and thus the petitioner should

         have taken permission from the competent authority before he

         crossed over to the State of Bihar.

                       Mr. Gyan Shankar, learned counsel has appeared

         for the consigner M/s Carlsberg India Private Limited to
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         support the transportation under valid documents and in

         reference to the stand taken in paragraph 3 of the counter

         affidavit filed on behalf of the said Company it is submitted

         that the entire set of document was in possession of the driver

         with appropriate endorsement by the Jharkhand State

         Beverages Corporation Limited but was not believed by the

         Jamui Police to cause the illegal seizure.

                       The State of Jharkhand and the Jharkhand State

         Beverages        Corporation        Limited   have   also   registered

         appearance through Mr. Arup Kumar Chongdar and though

         they have not chosen to file any counter affidavit but speaking

         through their counsel it is informed that the consignment was

         being transported under the valid documents and there is

         neither any doubt on the genuineness of the document or on

         the lawfulness of the goods transported.

                       We have heard learned counsel for the parties and

         we have perused the records.

                       Though a counter affidavit is filed on behalf of the

         respondent no.4 i.e. the Superintendent of Police, Jamui which

         barely runs into 10 paragraphs and purports to justify the

         impugned action under the cover of non-production of travel

         documents which stand is not supported from the recital of the
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         FIR, the Excise Department has not chosen to file any counter

         affidavit to defend the impugned action.

                       The impugned seizure has been carried out in

         purported exercise of powers so vested in the law enforcing

         agencies within the State of Bihar under the provisions of 'the

         Act' which under section 14 of 'the Act' restricts movement of

         intoxicants except under a valid permit or after obtaining

         transit permission and in section 30(a) imposes a penalty for

         any such unlawful import, export, transport, manufacture,

         possession, sale of intoxicants or liquor etc.

                       Though heavy reliance was placed by Mr. Vivek

         Prasad, learned Government Pleader No.7 on the provisions of

         section 14 of 'the Act' to defend the impugned action and to

         submit that the movement of any intoxicants can only be

         through a valid permit or under transit permission obtained

         from the prescribed authority, to a query made by the Court as

         to whether 'the Act' provides for any statutory permit or

         whether the Rules as mandated under section 14(4) have yet

         been framed by the State Government, Mr. Prasad has no

         answer because though 'the Act' was brought into force with

         effect from 02.10.2016 yet the statutory rules have yet not

         been framed.
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                       On a pointed query to Mr. Prasad as to what ought

         to be the proper course for the law enforcing agencies in the

         State of Bihar in case a transporter, in course of transportation

         of liquor on strength of valid travel documents, within the

         territory of a State where no Prohibition Law is in force like in

         the present case the State of Jharkhand, mistakenly treads over

         the territory of the State of Bihar where the Prohibition Law is

         in force and the vehicle driver is possessed with documents to

         support a lawful transportation of the goods, whether the

         authorities of the State of Bihar should have assisted to put the

         vehicle back to its normal course i.e. to return to the State of

         Jharkhand and/or to direct the driver to obtain permission

         from the competent authority or should have hurriedly

         proceeded for seizure, as done in the present case, no

         satisfactory answer could come forth.

                       In our opinion, the documents at Annexure 2 series

         are sufficient indication of a valid transportation of goods

         under the dispatch note issued by the Jharkhand State

         Beverages Corporation Limited from Ranchi to Deoghar,

         within the State of Jharkhand. The GPS tracking data at

         Annexure 4 very clearly confirms that the vehicle all along

         travelled within the State of Jharkhand and just before
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         reaching Deoghar that it must have mistakenly crossed over to

         Chandramandi in the district of Jamui within the State of

         Bihar and having realised the mistake the driver tried to return

         to the State of Jharkhand when the police authorities

         intercepted the vehicle and took it into their custody.

                       While the FIR at Annexure 3 very fairly

         acknowledges that the driver of the vehicle did inform the

         Station House Officer that the goods were being transported

         from Ranchi to Deoghar, there is no such mention in the FIR,

         either that the goods were being transported without valid

         documents or that the driver failed to produce the same. In

         fact, this lacuna is sought to be filled up through the counter

         affidavit when the Dy. Superintendent of Police, Jamui filing

         the affidavit under the authority of the Superintendent of

         Police, Jamui has tried to plug the loopholes to say that the

         driver failed to produce the documents. This statement again

         falls by the acknowledgment in paragraph 7 of the counter

         affidavit where the deponent accepts that somebody came

         with valid permit as regarding the transportation in question

         on 27.12.2018. It reflects plain abuse of statutory power that

         even when the respondents acknowledge that on 27.12.2018

         some one produced the valid permits to support the
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         transportation yet, neither the police authorities in the district

         of Jamui nor the prescribed authority under 'the Act' bothered

         to release the vehicle with the goods rather perpetuated the

         illegality to keep the truck in illegal seizure and relegated the

         driver of the vehicle to illegal custody.

                       Article 301 of the Constitution of India guarantees

         freedom of trade, commerce and intercourse throughout the

         territory of India. Though powers have been vested in the

         Parliament under Article 302 to impose reasonable restrictions

         and Article 304(b), inter alia, enables a Legislature of a State

         by law, to impose such reasonable restrictions on the freedom

         of trade, commerce or intercourse as may be required in

         public interest but then such restrictions have to be subject to

         the guarantee available under Article 301 of the Constitution

         of India.

                       No doubt, with effect from the date, the

         Prohibition Law was brought into force within the State of

         Bihar, none was permitted to import, export, transport,

         consume any intoxicant/liquor except under a valid permit but

         the case in hand is not a case where the consignment in

         question was being brought into the State of Bihar rather the

         consignment started its course at Ranchi within the State of
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         Jharkhand and was meant to be delivered at the Warehouse of

         the Jharkhand State Beverages Corporation Limited, Deoghar

         which again fell in the State of Jharkhand. There was thus no

         occasion for the consigner to obtain any valid permit from the

         excise authorities of the State of Bihar nor even if the truck

         crossed over to the territory of Bihar, could the Excise

         Department coerce the consigner to obtain a valid permit once

         it got confirmed from the travelling documents that the

         consignment was travelling under a statutory permit issued by

         the Government Corporation in the State of Jharkhand and

         was meant to be delivered at the Warehouse of the Jharkhand

         State Beverages Corporation Limited, Deoghar. This position

         is also admitted by Mr. Arup Kumar Chongar, learned counsel

         representing the State of Jharkhand as well as the Jharkhand

         State Beverages Corporation Limited.

                       This Court has on numerous occasions commented

         upon the repeated abuse of the Prohibition Law by the

         statutory authorities but the case in hand is a classic example

         where neither the district police authorities of Jamui nor the

         excise authorities are willing to relent and correct the mistake

         committed even when valid documents supporting the

         transportation has been brought to their notice and admitted
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         at paragraph 7 of the counter affidavit. The respondent

         authorities in the Excise and Prohibition Department,

         Government of Bihar yet continue to stand by their illegal

         action as canvased through their counsel Mr. Vivek Prasad.

                       In our opinion the provisions underlying section 14

         of 'the Act', which obliges a transport carrier to obtain a valid

         permit from excise authority, much relied upon by Mr. Prasad,

         is unworkable because no Rules have yet been framed to

         prescribe the procedure nor any form is prescribed to make

         the provisions effective. In such situation, the reliance by Mr.

         Prasad, learned Government Pleader No.7 on section 14 was

         completely misplaced and does not come to the aid of the

         respondents.

                       In our opinion, even if the State in its Police

         Department and the 'Excise Department' have their reasons

         for suspicion that it was a case of illegal transportation of

         liquor within the territory of the State of Bihar, once the

         Station House Officer admits that the driver of the vehicle had

         informed that the consignment was being transported from

         Ranchi to Deoghar and the Station House Officer,

         Chandramandi Police Station, Jamui, does not record any

         doubt in the statements so made while drawing the FIR, either
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         he should have allowed the vehicle to return to the territory of

         Jharkhand and/or even if, section 14 of 'the Act' was pressed

         in service then, he should have allowed sufficient time to the

         transporter or the consigner as the case may be, to obtain

         permits for the cross over into the State of Bihar but the

         district police did neither, rather mechanically proceeded to

         seize the vehicle along with the goods to register a police case

         and took the driver into custody.

                       We are satisfied to record that in view of the

         documents present at Annexure 2 series read alongside the

         G.P.S. tracking data present at Annexure 4, the authorities in

         the 'Excise Department' in the State of Bihar as well as the

         Jamui District Police should have exercised prudence rather

         than to mechanically apply the Prohibition Law to seize the

         goods which was being lawfully transported and which act is

         in direct conflict with the Constitutional guarantee provided

         under Article 301 of the Constitution of India and the

         impugned action does not get saved by the provisions of

         Article 304(b) in the attending circumstances.

                       Mr. Chongdar, learned counsel representing the

         State of Jharkhand and the Jharkhand State Beverages

         Corporation Limited has submitted on instruction that the
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         goods were under a valid transportation and which was being

         done with lawful documents. Though he admits to the delay in

         translating such instruction into affidavit but confirms that the

         goods were being lawfully transported.

                       We have also noted the submission of Mr. Gyan

         Shankar, learned counsel appearing for the M/s Carlsberg

         India Private Limited to submit that the driver was in

         possession of complete set of travelling documents which left

         no room for any suspicion either on the nature of the goods

         transported or on the nature of transportation.

                       The hearing of the present case initiated on

         14.02.2019

and while allowing time to the concerned respondents to file their counter affidavit we expected a prudent response from the authorities in the 'Excise Department' and the Jamui Police who we thought, would correct their course but the stand of the respondent authorities in the 'Excise Department' and the Jamui Police confirms to an obstinate, mechanical and pedantic approach which belies prudence.

For the reasons and discussions above we allow this writ petition and direct the designated court below at Jamui (in case no confiscation proceeding has yet started) Patna High Court CWJC No.2866 of 2019 dt.01-04-2019 17/17 and/or the District Magistrate, Jamui who is the prescribed authority under 'the Act' (in case confiscation proceedings have been initiated) to ensure the release of the Truck bearing Registration No.BR 01 GD 5138 together with the goods i.e. 500 cases of Tuborg Supreme Strong Premium Beer packed in bottles of 650 ml/500 ml within a period of 72 hours of receipt/production of a copy of this judgment, failing which the petitioner would be entitled to damages at the rate of Rs.5,00,000/- (five lacs) per month payable by the Excise Department, Government of Bihar from the date the alleged illegal seizure was carried out until the vehicle together with the goods are released.

Let a writ of mandamus issue accordingly to the authorities in the 'Excise Department' as well as the Jamui District Police.

(Jyoti Saran, J) ( Arvind Srivastava, J) skpathak/-

AFR/NAFR                AFR
CAV DATE                NA
Uploading Date          02.04.2019
Transmission Date       NA