Preference for exonerated toddy shop licensees survives unamended rule language; rejection based only on the earlier case was unsustainable.

Rule 5(1)(a) of the Kerala Abkari Shops Disposal Rules, 2002 continued to grant preference to a licensee whose toddy shop licence had been cancelled due to an abkari case but who was later acquitted. The amendment relied on by the authorities changed only the opening part of the rule and did not affect the clause protecting exonerated licensees. A rejection based solely on the earlier case therefore ignored the continuing force of the unamended preference provision. The adverse order was quashed, and the application was directed to be restored and reconsidered under the applicable preference conditions.

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Issues: Whether rejection of the petitioner's claim for preference in the grant of toddy shop privilege under Rule 5(1)(a) of the Kerala Abkari Shops Disposal Rules, 2002 was sustainable after his acquittal and in the absence of any amendment to the latter limb of the rule.

Analysis: The rule gave preference to qualifying licensees who had conducted toddy shops during the relevant period, and also extended preference to licensees whose licences had been cancelled due to registration of abkari cases and who were subsequently exonerated by the courts. The amendment relied on by the authorities altered only the opening portion of the rule and did not change the latter limb governing exonerated licensees. Since the petitioner's licence had been cancelled because of an abkari case and he was later acquitted, rejection of his application on the ground of the earlier case treated a non-existent basis as decisive and ignored the continuing effect of the unamended preference clause.

Conclusion: The rejection was unsustainable and was set aside. The petitioner's application was directed to be restored and reconsidered under Rule 5(1)(a) on the basis of the applicable conditions for preference.

Final Conclusion: The petitioner succeeded in having the adverse order quashed and obtained a fresh consideration of his entitlement to preference in the toddy shop allotment process.

Ratio Decidendi: Where a rule expressly preserves preference for exonerated licensees, an administrative authority cannot deny that preference on the basis of the cancelled case alone when the relevant clause remains unamended.

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