Shashi Ray Vs The State of Bihar — Patna HC (2024) — LawSathi Research

Shashi Ray Vs The State of Bihar — Patna HC (2024) — LawSathi Research

What the court decided

AI extract

Outcome

Interim oral order: vehicle directed to be handed over to the petitioner on furnishing security of 10% of the insured value of the vehicle with two solvent sureties to the satisfaction of the District Collector; no alienation of the vehicle and no charge to be created on it till the writ petition is disposed of; the writ petition itself remains pending.

Issue for consideration

Whether the penalty under Rule 12(A)(ii) of the Bihar Prohibition and Excise Rules, 2021, being linked to the insured value of the vehicle carrying contraband without regard to the quantity of intoxicants recovered, confers unbridled discretion on District Collectors capable of arbitrary exercise across the State. +1 more

Court's answer

There is no guideline to exercise the discretion under Rule 12(A)(ii), since the Rules prescribe no quantum of intoxicants that would be treated as for personal consumption or as a commercial quantity.

Ratio / Principle

Interim direction: the vehicle is to be handed over to the petitioner on his furnishing security of 10% of the insured value of the vehicle, with two solvent sureties, to the satisfaction of the District Collector.

Key takeaways

There is also no guideline as to the quantum of penalty to be imposed in excess of Rs. 1 lakh, which should bear some relation to the quantity of contraband recovered from the premises.obiter¶17
Prima facie opinion that Rule 12(A)(ii) gives unbridled power to the District Collectors, which would be exercised in an arbitrary manner across the State by different persons empowered under that Rule.obiter¶17
Restraint imposed till disposal of the writ petition: no alienation of the vehicle and no charge of any kind to be created on it.

Detailed headnote1 paragraphs

Patna High Court, Civil Writ Jurisdiction Case No.7962 of 2023, oral order dated 09-01-2024 (Per K. Vinod Chandran, CJ, with Rajiv Roy, J): In a writ petition concerning penalty under Rule 12(A)(ii) of the Bihar Prohibition and Excise Rules, 2021 (substituted on 31.05.2023) imposed with reference to a vehicle carrying intoxicants, the Court recorded a prima facie opinion that linking the penalty to the insured value of the vehicle without regard to the quantity of intoxicants recovered, the absence of any prescription distinguishing personal consumption from commercial quantity, and the absence of any guideline for penalties exceeding Rs. 1 lakh tied to the quantity of contraband, confer unbridled power on District Collectors liable to arbitrary exercise across the State. As interim relief, the Court directed that the vehicle be handed over to the petitioner on his furnishing security of 10% of the insured value of the vehicle with two solvent sureties to the satisfaction of the District Collector, and barred any alienation of the vehicle or creation of any charge on it till disposal of the writ petition.

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.7962 of 2023

======================================================

Shashi Ray S/o-Sewalal Ray, Resident of Village-Chirand, PS-Doriganj, District-Saran.

... ... Petitioner/s

Versus

The State of Bihar through the Chief Secretary Govt. of Bihar, Patna.

Additional Chief Secretary to the Govt. of Bihar, Prohibition Excise and Registration Department, Patna.

Collector, District-Gopalganj.

... ... Respondent/s

====================================================== Appearance : For the Petitioner/s : Mr. Ebrahim Kabir, Advocate For the Respondent/s : Mr. P. K. Shahi, AG Mr. Pawan Kumar ( AC To AG ) ======================================================

CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE RAJIV ROY ORAL ORDER

(Per: HONOURABLE THE CHIEF JUSTICE)

7 09-01-2024 Rule 12(A)(ii) has been substituted on 31.05.2023

and the amount of penalty has to be imposed with due regard to the quantity of the intoxicants recovered, involvement of the vehicle owner and the insured value of the vehicle. It is also prescribed that the penalty should not be less than 10% of the insured value of the vehicle and not more than Rs. 5 lakh.

We are concerned with the fact that the penalty has been linked to the value of the vehicle which carries the

Patna High Court CWJC No.7962 of 2023(7) dt.09-01-2024 2/3

contraband without any regard to the quantity of the intoxicants recovered. The learned Advocate General submits that reference to quantum of intoxicants takes care of the issue insofar as the in the present case, the quantity is far above that kept by any individual for personal consumption. However, it has to be noticed that there is no guideline to exercise the discretion especially since there is no prescription of the quantum of intoxicants, which would be treated to be for personal consumption or as a commercial quantity. There is also no guideline as to the quantum of penalty to be imposed in excess of Rs. 1 lakh, which should have some relation to the quantity of contraband recovered from the premises. In such circumstances, we are of the prima facie opinion that it gives unbridled power to the District Collectors and the same would be exercised in an arbitrary manner across the State by different persons empowered with the authority under Rule 12(A)(ii) of the Bihar Prohibition and Excise Rules, 2021.

As of now the vehicle is directed to be handed over to the the petitioner, on the petitioner furnishing security of 10% of the insured value of the vehicle with two solvent sureties to the satisfaction of the District Collector. It is made

Patna High Court CWJC No.7962 of 2023(7) dt.09-01-2024 3/3

clear that there shall not be any alienation of the vehicle and there shall no charge created, whatsoever, on the vehicle till the writ petition is disposed off.

(K. Vinod Chandran, CJ)

( Rajiv Roy, J)

sharun/-

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