Preferential right in toddy shop allotment must be heard before confirmation of provisional allotment.
Before confirming a provisional allotment of toddy shops under Rule 5(15) of the Kerala Abkari Shops Disposal Rules, 2002, the Excise Commissioner must issue notice and hear competing claimants where a preferential right is asserted under Rule 5(1)(a). A sale at the auction stage does not become final against the Government until such confirmation, so rival objections and entitlement to preference must be examined at that stage. The petitioners' claim was therefore preserved for consideration, and confirmation could follow only after a hearing and decision on preferential entitlement.
Issues: Whether the Excise Commissioner, before confirming the provisional allotment of toddy shops under Rule 5(15) of the Kerala Abkari Shops Disposal Rules, 2002, was required to issue notice and consider the petitioners' claim of preferential right under Rule 5(1)(a).
Analysis: The petitioners asserted a preferential right to the shops, while the rival allottees disputed that entitlement. Since a sale made at the auction stage does not become final against the Government until confirmed by the Commissioner under Rule 5(15), the question of preferential entitlement had to be examined before final confirmation. The parties also sought an opportunity of hearing before the Commissioner, and the Court accepted that the rival claim and objections should be considered at that stage.
Conclusion: The Excise Commissioner was directed to issue notice of hearing to the petitioners and the party respondents, consider the petitioners' entitlement to preferential right under Rule 5(1)(a), and pass orders on confirmation only after such consideration.
Final Conclusion: The writ petitions were disposed of by preserving the petitioners' claim for consideration before confirmation of the provisional allotment.
Ratio Decidendi: Where a statutory confirmation step is required to finalise a provisional allotment, competing claims to preferential entitlement must be heard and decided before the confirmation order is passed.
TaxTMI 
AI Drafter ✕
TaxTMI 
