High Court of Karnataka at Bengaluru (single judge, Excise) — C.A.V. order in W.P. No.9226/2022 (NC: 2025:KHC:9188), Anant Ramanath Hegde J., 04.03.2025. Petitioner (M/s SPR Spirits Pvt. Ltd.), successful bidder for the retail vend liquor leases of Ramanagar, Channapattana and Kanakapura taluks for excise year 2001-02, surrendered the licence midway and the re-auction yielded less, leaving arrears of loss; its earnest money deposit of Rs.2,47,75,200/- stood forfeited and further recoveries were made through monthly deductions imposed while renewing its distillery licence (orders dated 28.07.2003 and 12.06.2007). Following Guruvamma (2007(3) AIR KAR 99), W.P. No.11342/2011 (order dated 04.02.2013) directed adjustment of the forfeited deposit while computing loss and consideration of the petitioner's Kara Samadhana Scheme-III application; the State's belated W.A. No.5851/2013 was dismissed (order dated 18.03.2021), which also set aside the Deputy Commissioner's rejection of the Scheme-IV application as without jurisdiction and directed the Excise Commissioner to decide it. The Excise Commissioner's order dated 11.11.2021 (No.ECS/15/WP/2011) rejecting the Scheme-IV application and ignoring the Scheme-III writ stands quashed. Held: (i) the writ in W.P. No.11342/2011, having attained finality, still operates — the Scheme-III application survives despite Scheme-IV, whose clause 7 admits applicants under earlier schemes and whose withdrawal condition does not reach court-directed applications; (ii) the Commissioner's view that recovery after forfeiture ousts the Scheme contradicts its terms, which apply even to payments after Scheme-II; (iii) the forfeited EMD must be deducted from the State-computed loss of Rs.9,77,38,672/-, fixing actual loss at Rs.7,45,08,323/-; (iv) recoveries under the renewal-condition orders are to be reckoned as principal under clause 8 of Scheme-III, attracting complete waiver of interest; (v) the 2017 proviso to sub-rule (2) of Rule 18, Rules 1969 cannot defeat rights crystallised under the pre-amendment schemes and the affirmed writ. Petition allowed-in-part; respondent No.2 to reconsider within 30 days and refund any amount adjusted towards interest.
