Karnataka HC Quashes FIR Against Liquor Company Accused Of Parking Trucks Loaded With Liquor Bottles In Its Premises During Operation Of Model Code Of Conduct

The Karnataka High Court has quashed a criminal case registered under the Karnataka Excise Act against Kalpatharu Breweries and Distilleries Pvt Ltd who allegedly during the Lok Sabha Election 2024, when the Election Code of Conduct was in force, parked trucks loaded with liquor in the company premises.

A single judge bench of Justice M G Uma allowed the petition and said “Even if the first information is accepted as it is in the light of the invoice and the permit produced by the petitioner, no offence either under Section 32 or under Section 34 of the Karnataka Excise Act, 1965 is made out.”

The petitioner company has a distillery license issued by the Karnataka Excise Department and as per the license, the liquor and beer produced by the petitioner was required to be supplied only to the Karnataka State Beverages Corporation Limited (KSBCL). The petitioner was not permitted to supply his product to any other person.

The company raised an invoice on 16.03.2024 for the supply of the consignment worth Rs.36,00,000 to KSBCL and a necessary permit was issued on the very same date which was valid up to 22.03.2024. But before the expiry of the validity of the permit, on 18.03.2024 itself the Sub-Inspector of Excise registered the FIR on the ground that on that date i.e, 18.03.2024, the truck loaded with liquor bottles was parked in the premises of the petitioner company.

It was argued that when the validity of the permit has not yet expired, no offence was made out against the petitioner. The truck is seized, which is causing hardship to the petitioner.

The prosecution opposed the plea saying that during the Lok Sabha Election 2024, when the Election Code of Conduct was in force, the petitioner parked the truck loading with liquor in the company premises and thereby committed the offence.

The bench on going through the records noted that it is an admitted fact of the case that the petitioner is a company having a distillery license for producing liquor, whisky, beer etc. It is also admitted that the petitioner was permitted to supply the beverages only to the KSBCL and it is not permitted to sell the product to any other person.

Thus it held “Prima facie it is the case of abuse of process of law by registering the case during the Loksabha Elections taking advantage of the Election of Code of Conduct. If at all the petitioner was not permitted to deliver the liquor to KSBCL during the period of Code of Conduct, the department could not have issued the permit in favour of the petitioner. In this view of the matter, the criminal proceedings is to be quashed.”

Appearance: Senior Advocate G K Bhat for Advocate Sudha D for Petitioner.

HCGP Waheeda M M for Respondent.

Citation No: 2024 LiveLaw (Kar) 218

Case Title: Kalpatharu Breweries And Distilleries Pvt Ltd AND State of Karnataka

Case No: WRIT PETITION NO. 12274 OF 2024

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