The Hindu : IMFL licence: orders reserved on Tamil Nadu's plea

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Tuesday, Aug 20, 2002

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IMFL licence: orders reserved on Tamil Nadu's plea

By Our Legal Correspondent

NEW DELHI AUG. 19. The Supreme Court today reserved orders on a special leave petition filed by the Tamil Nadu Government challenging a judgment of the Madras High Court directing the State to renew the licences of about 7,000 IMFL shops for 2002-2003.

During `mention' time on July 30, when the court declined to stay the impugned judgment, an undertaking was given that the licences would be extended till August 15 and again on August 9 it was submitted that the licences would be extended till August 31.

Today a Bench comprising Justice G.B. Pattanaik, Justice Ruma Pal and Justice K.G. Balakrishnan reserved orders at the conclusion of arguments by senior counsel for the State, K.K. Venugopal and P. Chidambaram, senior counsel for the respondent-licencees.

Mr. Venugopal, citing a Supreme Court judgment said that the renewal of licence was not automatic, and `renewal clause' was brought about by a change of policy, under which the minimum offtake for each licencee was fixed.

He also drew the Court's attention that only 319 out of the 5,512 licencees had paid the licence amount by July 31 and as such the rest had not complied with the High Court's direction.

Mr. Chidambaram submitted that nowhere in the G.O. the condition of lifting of minimum stock was mentioned and for the first time the Government was giving this reason for not renewing the licences.

Regarding non-payment of the licence amount by July 31, he said the authorities had refused to accept the amount citing that the matter was pending in the Supreme Court.

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