Supreme Court Recalls Its Order Which Wrongly Applied Highway Distance Rule To Liquor Shop In Municipal Area

As per the facts, a writ petition in 2021 was filed in the Madras High Court which had sought not to shift the liquor shop in the name of M/s.Premier Enterprises to an area which is adjacent to a school, a temple and a mosque, i.e. 150 meters of radius. 

The Madras High Court observed that as per the Puducherry Excise Rules of 1970, the liquor shop cannot be located within the distance of 50 meters from an educational institution and also temple/mosque. However considering that the distance in question was 150 meters from the school and places of worship, the High Court held that the Rules of 1970 have not been violated. 

In March 2023, a division bench of Justices MR Shah and CT Ravikumar set aside the High Court's ruling based on the decision in K Balu. The reasoning of the division bench is as follows : 

"Thus, as per para 29.5, no shop for the sale of liquor shall be (i) visible from a national or State highway; (ii) directly accessible from a national or State highway; and (iii) situated within a distance of 500 m of the outer edge of the national or State highway or of a service lane along with the highway. The Rule which may be applicable in the Union Territory of Puducherry may not be permitted to over-rule the directions issued by this Court." 

In the recall proceedings,  Attorney General for India R Venkataramani, appearing for Union Territory of Puducharry, pointed to the bench that a subsequent clarification which was issued in Arrive Safe Society Of Chandigarh v. Union Territory of Chandigarh by 3 Judge bench comprising then CJI Justice Kehar and Justices DY Chandrachud and Nageswara Rao.

The clarification order stated :. "The order does not prohibit licensed establishments within municipal areas. This clarification shall govern other municipal areas as well. We have considered it appropriate to issue this clarification to set at rest any ambiguity and to obviate repeated recourse to IAs, before the Court”.

Taking note of these developments, the Court today recalled the earlier order and restored the writ petition back to the High Court for fresh consideration.

The CJI in his order dictated said, “ Upon recall of the order dated 20 March 2023, we restore the petition back to the High Court for decision afresh and accordingly set aside the order of the High Court dated 4.1.2022”