Supreme Court of India
State of M.P. & Anr. v. Kedia Great Galeon Ltd. & Anr.
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What the Court ordered
In view of the aforesaid settled legal position, the condition empowering the State Government to recover the actual cost of supervisory staff posted at the premises of the respondent cannot be said to be in any way illegal or ultra vires as it constitutes the price or consideration which the Government charges to the licensee for parting with its privilege and granting licence.
Judgment, page 21
From the headnote
Madhya Pradesh Distillery Rules, 1995: Rule 4(41) - Notice to licensee under the Act - Demanding certain amount as excess expenditure on the establishment of officers and employees - Challenged by filing writ petition without challenging the vires of r. 4(41) - Single Judge of High Court quashed the demand notice holding the same as arbitrary and unreasonable - Single Judge though opined that r. 4(41) seems to be ultra vires MP. Excise Act beyond the rule making powe1~ but in absence of any prayer in this regard,· did not give any order in that behalf- Writ appeal dismissed - On appeal, held:
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