Substituted highway schedule excludes omitted stretch from distance-based liquor licence restrictions, making rejection unsustainable.

The amended notification dated 01.05.2015 substituted the Schedule to the National Highways Act, 1956 and omitted Visakhapatnam from the NH-16 route description. On that basis, the omitted stretch could no longer be treated as part of NH-16 for applying the 500-metre liquor licence restriction. The clarification stated that a separate de-notification under Section 2(3) was unnecessary where the Schedule itself had been substituted. Accordingly, rejection of the A4 shop and 2-B bar licence applications on the assumption that the premises were within the prohibited highway belt was legally unsustainable, and the applications had to be reconsidered in accordance with law.

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Issues: Whether the rejection of applications for A4 shop and 2-B bar licences on the ground that the premises were within 500 metres of National Highway No. 16 was valid after the 01.05.2015 notification amending the Schedule to the National Highways Act, 1956.

Analysis: The amended notification dated 01.05.2015 substituted Serial No. 49 of the Schedule and described NH-16 as passing through Anandapuram, Pendurthi and Anakapalli, while Visakhapatnam no longer found place in the route description. The clarification issued by the Ministry of Road Transport and Highways also stated that a separate de-notification under Section 2(3) was not required where the Schedule itself had been substituted. Once Visakhapatnam was omitted from the Schedule, the stretch could not be treated as part of NH-16 for the purpose of the 500 metre prohibition. The rejection orders were therefore based on an erroneous understanding of the statutory notification, and the authority ought to have considered the applications afresh.

Conclusion: The rejection of the licence applications was invalid, and the writ petitions were allowed by setting aside the impugned orders with a direction to reconsider the applications in accordance with law.

Ratio Decidendi: When a highway route is substituted in the Schedule to the National Highways Act, 1956 so as to omit a locality, the omitted stretch cannot continue to be treated as part of that national highway for applying distance-based licensing restrictions.

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