Death transfer of excise licence falls under Rule 17A, excluding transfer fee under the general transfer provision.

On the death of a partner in a partnership firm holding CL-2 excise licences, the applicable provision is Rule 17A of the Karnataka Excise Licences (General Conditions) Rules, 1967, where the firm deed provides for continuation and induction of the legal representative. Rule 17A governs death-related transfer of the licence with prior sanction in favour of legal heirs, while Rule 17B applies only to other transfers and is expressly excluded where Rule 17A applies. A demand for transfer fee under Rule 17B is therefore unsustainable, and the notices based on that provision were quashed with reconsideration directed under Rule 17A.

---

---

Issues: Whether, on the death of a partner in a partnership firm holding CL-2 excise licences, the licences were required to be dealt with under Rule 17A of the Karnataka Excise Licences (General Conditions) Rules, 1967, or whether Rule 17B applied so as to require payment of transfer fee.

Analysis: The facts were admitted: the deceased partner was a partner in the licensed firms, the partnership deeds provided that the firm would not dissolve on death and that the legal representative could be inducted in the deceased partner's place, and the licence was subsisting. Rule 17A specifically governs transfer in the event of death and permits transfer of the licence in favour of the legal heirs on application with prior sanction. Rule 17B applies to transfers in other cases and expressly excludes transfers covered by Rule 17A. Since the situation arose from the death of a partner and the legal representative was sought to be inducted, the case fell within Rule 17A and not Rule 17B.

Conclusion: Rule 17A applied, Rule 17B had no application, and the demand notices seeking transfer fee were unsustainable.

Final Conclusion: The impugned notices were quashed and the authority was directed to decide the representation in accordance with Rule 17A.

Ratio Decidendi: Where a partnership firm holding an excise licence provides for continuation on the death of a partner and induction of the legal representative, the licensing authority must act under the death-transfer provision and cannot invoke the general transfer-fee provision excluded by that rule.

---