Pernod Ricard India Pvt. Ltd. found ineligible due to 'criminal background' under Delhi Excise Act, 2009.
In a significant ruling, the Delhi High Court has upheld the rejection of Pernod Ricard India Pvt. Ltd.'s application for an L-1 license for the wholesale supply of Indian liquor in Delhi, citing non-compliance with Section 13(1)(c) of the Delhi Excise Act, 2009. The court, presided over by Justice Purushaindra Kumar Kaurav, emphasized that the condition for not being convicted of a criminal offence should be considered the minimum standard and not the maximum for determining criminal background.
The case revolved around the interpretation of Section 13(1)(c) of the Delhi Excise Act, which stipulates that applicants must possess good moral character and have no criminal background. The judgment clarified that the word "or" in the section should be read as "and," indicating that applicants must meet both conditions to be eligible for a license.
Pernod Ricard's application was initially approved, but later revisited due to new information about its alleged involvement in the Delhi Excise Policy Scam, including money laundering and manipulation of excise policy through criminal conspiracy. The court found substantial evidence, including FIRs and prosecution complaints, supporting the allegations against Pernod Ricard and its employees, leading to its classification as having a "criminal background."
Justice Kaurav highlighted the unique nature of the liquor trade, which requires stringent eligibility criteria due to its potential impact on public safety and morality. The court found no arbitrariness or illegality in the decision-making process of the Excise Department, which had revisited Pernod Ricard's application after receiving new material information.
The court's decision underscores the importance of maintaining strict standards in the licensing process, especially in sectors involving public welfare and safety. Pernod Ricard has been granted the liberty to reapply for the license if there is a change in the status of the criminal cases against it.
Bottom Line:
Delhi Excise Act, 2009 - Interpretation of Section 13(1)(c) - The condition for not being convicted of a criminal offence is the floor, not the ceiling, for determining criminal background under Section 13(1)(c) - The word "or" between the expressions "has no criminal background" and "has not been convicted of any offence" to be read as "and".
Statutory provision(s): Delhi Excise Act, 2009 - Section 13(1)(c), Section 13(1)(g), Section 17, Rule 32.
M/s Pernod Ricard India Pvt. Ltd. v. Excise Department, Delhi, (Delhi) : Law Finder Doc id # 2909834
