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of <h1>High Court sets aside stay order in appeal, no contempt order or costs imposed. Distillery's actions deemed misleading.</h1> <h3>STATE OF HARYANA Versus KARNAL DISTILLERY CO. LTD</h3> The appeal was accepted, and the High Court's order granting stay of dispossession was set aside. No order was passed on the contempt proceedings ... - Issues involved: The issues involved in the judgment include contempt proceedings for not abiding by a court order, validity of a notice determining a license, renewal of a license for manufacturing liquor, and disposal of stock of spirit and distilling plant.Contempt Proceedings:The State filed an application for initiating contempt proceedings against the respondent for not abiding by the court order. The appeals were adjourned multiple times for settlement discussions, and eventually, the Distillery accepted that they would cease liquor manufacture after the license expiry. The court found it necessary to record that distillery operations at Karnal were not allowed due to the circumstances.Validity of License Notice:The appeals revolved around the validity of a notice determining the license, which was challenged by the Distillery. The court's dismissal of the appeals indicated that the contentions challenging the notice were not accepted. The Distillery was given time till 6 September 1976 to cease liquor manufacture under the license.Renewal of License:The Distillery sought renewal of the license for manufacturing liquor at Karnal. However, after the court order on 22 April 1976, the Distillery could not request renewal beyond 6 September 1976. The court clarified that it did not pronounce on the validity of any license.Disposal of Stock:The Distillery requested time to bottle the manufactured liquor for disposal. Rule 10 of the Punjab Distillery Rules 1932 mandates the disposal of stock, apparatus, and distilling plant under the direction of the Financial Commissioner. The court directed the Financial Commissioner to provide suitable directions for disposal.Conclusion:The appeal was accepted, and the High Court's order granting stay of dispossession was set aside. No order was passed on the contempt proceedings application, and no costs were imposed. The Distillery's actions in the High Court for license renewal were deemed misleading and for ulterior purposes.
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