17. Power to grant lease of right to manufacture, etc.
(1)The State Government may lease to any person, on such conditions and for such period as it may think fit, the exclusive or other right,-(a)of manufacturing or supply by wholesale or of both, or(b)of selling by wholesale or by retail, or(c)of manufacturing or supplying by wholesale, or of both and of selling by retail,any Indian liquor or intoxicating drug within any specified area.[( 1A) No lease granted under sub-section (1) shall be transferred:Provided that the State Government may grant permission to the lessee to transfer the lease or a part thereof in favour of any other person subject to such terms and conditions (including the transferee entering into an agreement of lease with the State Government), as may be prescribed.;] [Inserted by Act 1 of 1971 w.e.f. 7-8-1970](2)The licensing authority may grant to a lessee [under sub-section (1) or a transferee under sub-section (1A)] [Substituted by Act 1 of 1971 w.e.f. 7-8-1970], a licence in the terms of his lease; and when there is no condition in the lease, which prohibits sub-letting may, on the application of the lessee, grant licences to any sub-lessee approved by such authority.[( 3) A lease referred to in sub-section (1) or sub-section (1A) may be determined,-(a)if any duty or fee payable by the lessee is not duly paid; or(b)in the event of breach of any term or condition of the lease bythe lessee or any of his servants or any person acting on behalf of or under the express or implied permission of the lessee; or(c)if the lessee becomes incapable of carrying on the business; or(d)if the conditions of the lease provide for determination at will:Provided that no such determination shall be made unless the person affected has had a reasonable opportunity of showing cause against such determination.(4)Where a lease is determined under clause (a), (b), or (c) of subsection (3), the State Government may direct the Deputy Commissioner, to take the right under his management and to lease it again by re-sale or other-wise; and if on such management or re-sale, the amount realised is less than the amount payable under the lease which was determined, the loss shall be payable by the person whose lease was determined.] [Sub-sections (3) and (4) Inserted by Act 1 of 1971 w.e.f. 7-8-1970]
