In Sun Bright Marketing (P) Ltd.'s case (supra) claim of proportionate reduction was accepted in view of the fact that liquor vend was situated beyond the municipal limits where the election was being conducted. It was found that case is covered by Clause VIII of the General Licence Conditions and not by Clause V of such conditions which permits the closure of liquor vends for the purpose of election in the municipal limits. Clause VIII of the Conditions was to keep the shops open. Subclause 3 of the said Clause provides that shops shall remain closed in any area, or areas for such period as the State Government may in public interest deem necessary to do, it provided that when a shop is closed under this rule, the Collector may with the previous sanction of the Excise Commissioner, award compensation to the licensee for the loss of profits. On the other hand, Clause V contemplated the closure of liquor vends during Lok Sabha and Assembly general elections/by-elections, and also elections of local bodies. In respect of local bodies, the shops of only those areas will remain closed where elections are being held. Since the liquor vend was situated not within the municipal limits of the local area where the municipal elections were being held, it was found that the closure of liquor vends fall
