Gujarat High Court Sets Aside Order Denying Arms License To Businessman Saying He May Deal In Digital Payment To Avoid Threats In Cash Transactions

The Gujarat High Court on Monday set aside an order of Single Judge Bench of the High Court which denied the arms licence to a business man who had requested for the same as he had to deal with cash transactions, on the ground that there were options open for him to deal through digitized payment and avoid cash transactions.

While allowing the Letters Patent Appeal filed by the appellant, the division bench of The Acting Chief Justice A. J. Desai and Justice Biren Vaishnav observed:

“Perusal of the impugned orders before the learned Single Judge indicate that the only ground that weighed with the authorities in rejecting the request of the appellant for an arms license is that there were options open for the appellant to deal through digitized payment and avoid cash transactions and that there was no threat perception. Reading the provisions of the Arms Act, particularly sec. 14 thereof indicates that such ground as the ones advanced by the authorities are beyond the scope of section 14 of the Act.”

The appellant was engaged in the business of transportation & construction and had to deal with cash transactions. He has applied for arms license in the year 2016 which was rejected by the Collector and District Magistrate, Bhavnagar on the ground that rather than undertaking cash transactions, it was open for the appellant to undertake operations through banking and also through courier services and as there were modes of digital transactions available, the appellant was not entitled to an arms license.

The appellant filed an appeal before the appellant authority challenging the order of the Collector which was rejected vide order dated June 25, 2019.

The appellant approached the High Court challenging the impugned orders which were affirmed by the Single Judge Bench vide order dated September 22, 2022. Hence, the appellant filed an appeal under clause 15 of the Letters Patent challenging the impugned order of the single judge.

The Assistant Government Pleader, Sahil Trivedi submitted that under the provisions of Arms Act, 1959, it is the subjective satisfaction of the licensing authority who is in the field and who can assess the situation on the basis of material which is before him.

He further submitted that such an assessment cannot be substituted by this Court and the Court cannot undertake any exercise to determine the facts leading to such subjective satisfaction.

The court relied upon the judgement of the Gujarat High Court in Vallabhbhai Ramjibhai Khagad v. The Home Department in Letters Patent Appeal No. 425 of 2022 in Special Civil Application No. 2959 of 2021 in which it was laid down:

“It is the subjective satisfaction, based on objective assessment the licensing authority will arrive at a conclusion to grant or refuse the grant of arms license and paramount consideration would be, whether there is danger to the life of the applicant which warrants grant of Arms License.”

Accordingly, the court set aside the impugned order passed by the Single Judge.

Case Title: Mahavirsinh Vanrajsinh Gohil v. State of Gujarat

Case Citation: 2023 Livelaw (Guj) 47

Coram: The Acting Chief Justice A. J. Desai and Justice Biren Vaishnav

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