Vikram Khanna vs. State Of U.P. And 3 Ors

Facts

The petitioner, Vikram Khanna, applied for a model liquor shop at Jagdishpura Bodla Road, Agra, for the financial year 2018-19. He deposited earnest money of Rs. 4,67,000/- along with processing fee and 18% GST on February 28, 2018. He fulfilled all formalities, including submitting a solvency certificate of Rs. 61,80,000/-. The shop was allotted to him via e-lottery on March 19, 2018. He was required to deposit a license fee of Rs. 49,70,000/-. A challan for Rs. 42,00,000/- was issued, and the petitioner prepared a draft for this amount on March 26, 2018. However, respondents 3 and 4 refused to accept the draft. The petitioner made representations, but the respondents did not accept the balance license fee. Subsequently, a notification dated April 6, 2018, was issued by the District Magistrate/Licence Authority, Agra, and the District Excise Officer, Agra, inviting proposals for allotment of model shops, including the one allotted to the petitioner, for a third round of allotment.

Held

The Court held that the action of the respondent authorities in issuing the notification dated April 6, 2018, concerning the model shop at Jagdishpura Bodla Road, Agra, was illegal. The Court found no reason to include a shop that had already been allotted to the petitioner in the impugned notification for a fresh allotment. The Court reasoned that the petitioner had fulfilled all the necessary conditions and had been allotted the shop through a proper e-lottery process. The refusal to accept the license fee and the subsequent inclusion of the shop in a new allotment round without addressing the petitioner's pending representation and without providing a hearing were deemed arbitrary. Therefore, the notification dated April 6, 2018, was quashed insofar as it related to the petitioner's allotted shop. The Court directed respondents 3 and 4 to accept the petitioner's bank draft and issue the license within a week of receiving a certified copy of the order.

Key Issues

1. Whether the notification dated April 6, 2018, issued by the District Magistrate/Licence Authority, Agra, and the District Excise Officer, Agra, is illegal and arbitrary in so far as it includes the model shop at Jagdishpura Bodla Road, Agra, which was already allotted to the petitioner, for a fresh allotment process. Petitioner's contentions: The petitioner argued that the impugned notification dated April 6, 2018, was issued without providing him an opportunity of being heard and without deciding his representation dated March 27, 2018. He contended that there were no outstanding demands or dues against him, yet the respondents refused to accept the balance license fee. He further argued that the inclusion of his allotted shop in the fresh allotment notification was in contravention of the law and issued with malicious intent to harass him, especially since he possessed a solvency certificate significantly exceeding the requirement. Respondent's contentions: The judgment does not record any specific arguments made by the respondents.