High Court of KeralaSingle JudgeWrit petition dismissed; costs imposed; matter ...

Devicolam Distilleries Ltd. v. State of Kerala and Others

Case / Petition Number:WP(C).No.14503/2018

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Honourable Mr. Justice Anil K. Narendran
Judgment Date
2018-09-13
Court Decision / Holding
The writ petition is dismissed; the petitioner is directed to pay costs amounting to Rs. 5,00,000 to the Chief Minister's Distress Relief Fund within three weeks; failure to remit will invite recovery by the State. The order confirms that there is no basis to grant the relief sought and that the petitioner's conduct amounts to abuse of process.
Final Disposition
Writ petition dismissed; costs imposed; matter disposed with directions regarding payment to the Chief Minister's Distress Relief Fund.

Parties to the Case

Appellants / Petitioners

  • M/s. Devicolam Distilleries Ltd.

Respondents

  • State of Kerala represented by the Secretary to Government, Taxes Department, Secretariat, Thiruvananthapuram
  • Excise Commissioner, Commissionerate of Excise, Nanthavanam, Vikas Bhavan, Thiruvananthapuram
  • Joint Excise Commissioner, Central Zone, Ernakulam
  • Deputy Excise Commissioner, Excise Division Office, Ernakulam
  • Excise Inspector (Distillery Officer), Devicolam Distilleries Ltd., Kakkanad

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. S.P. Aravindakshan Pillay
  • • Sri. S.A. Anand
  • • Sri. K.A. Balan
  • • Sri. Peter Jose Christo
  • • Smt. K.N. Remya
  • • Smt. N. Santha
  • • Sri. V. Varghese

Counsels for Respondents

  • • Sri Bimal K. Nath, Senior Government Pleader

Case Synopsis & Summary

The petitioner, M/s. Devicolam Distilleries Ltd., challenges Ext.P9, a demand notice issued by the Distillery Officer under the Foreign Liquor (Registration of Brand) Rules, 1995 (as amended by the 2012 Second Amendment). The notice demanded Rs. 25,000 per brand for 11 brands of Foreign Liquor to clear stock for the previous financial year, invoking a brand registration requirement under the amendment to Rule 3. The petitioner argues that the amendment (Ext.P10) is unauthorized without amending the Abkari Act, and that the petitioner has already paid the fees for prior years; payment for removal of remaining brands would amount to unjust enrichment. The petition references earlier petitions (W.P.(C) No.18501 of 2012 and W.P.(C) No.7383 of 2017) and interim orders. The court reviews the petitions, interim orders and conduct of the petitioner, noting that some material facts and circumstances were not candidly stated in the pleadings and that Ext.P11 (the interim order) was presented without proper context. The judgment emphasizes that the writ remedy under Article 226 is discretionary and premised on truthfulness and full disclosure. The court dismisses the petition with significant costs, holding that the petitioner had conducted the matter in a manner that abused judicial process. The order culminates in a dismissal with costs to be paid to a public fund, and directs compliance steps for remittance. The registry is directed to place the judgment in related files.

Provisions of Law Cited

Article 226 of the Constitution of IndiaKerala High Court Act, 1958 - Section 8Foreign Liquor (Registration of Brand) Rules, 1995Foreign Liquor (Registration of Brand) Second Amendment Rules, 2012Proviso to sub-rule (7) of Rule 3 of the Foreign Liquor (Registration of Brand) Rules, 1995G.O.(P) No.107/2012/TD dated 14.06.2012 (S.R.O. No. 433/2012)G.O.(P) No.57/2013/TD dated 30.03.2013 (S.R.O. No. 254/2013)Abkari Act, 1077

Legal Doctrines & Maxims

  • Clean hands doctrine: an applicant must come with full and fair disclosure of material facts; suppression or concealment can lead to dismissal (R. v. Kensington Income Tax Commissioners).
  • Full and fair disclosure of material facts is essential in writ petitions; suppression or misrepresentation may lead to dismissal and exemplary costs (Prestige Lights Limited v. State Bank of India).
  • The court is a discretionary and equitable instrument under Article 226; publish facts truthfully and without reservation (Prestige Lights Limited, and related discussion in K.D. Sharma).
  • A litigant invoking extraordinary jurisdiction must come with clean hands and clean objects; suppression or misstatement may result in dismissal with exemplary costs (Dnyandeo Sabaji Naik v. Pradnya Prakash Khadekar; Usha Nanthini v. Regional Transport Authority).

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that Ext.P10 (the amendment) and the consequent demand for Rs.25,000 per brand to clear stock for the previous financial year are not authorized without amending the Abkari Act. It is argued that Ext.P9 notice seeks to impose a new levy for brand registration for prior years, which would amount to unjust enrichment since the petitioner has already paid the fees for those years. The petition references interim orders in similar matters (W.P.18501 of 2012 and W.P.7383 of 2017) and claims Ext.P11 mischaracterizes the court's position; it asserts that Ext.P10 was not under challenge in those petitions. The petition also argues constitutional and statutory limitations and seeks quashing of Ext.P9 and related actions.

Contentions of Respondents

The respondents defend the statutory authority and the validity of Ext.P9 and Ext.P10 amendments, arguing that the brand registration fee is legally enforceable under the amended Rules for stock clearance and that previous petitions and interim orders do not render the current notice invalid. They rely on the statutory framework and the government’s regulatory powers under the Foreign Liquor Rules and the Abkari Act.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
R. v. Kensington Income Tax Commissioners[(1917) 1 KB 486]PositiveUsed to support the principle that an applicant must come with candid facts; suppression or distortion of facts leads to dismissal.
Prestige Lights Limited v. State Bank of India[(2007) 8 SCC 449]PositiveCited for the proposition that the writ jurisdiction is discretionary and that full truth and disclosure are essential; suppression may lead to dismissal and exemplary costs.
K.D. Sharma v. Steel Authority of India Ltd.[(2008) 12 SCC 481]PositiveAffirms that parties invoking extraordinary jurisdiction must be truthful and disclose all material facts; failure to do so undermines the court's function.
Dnyandeo Sabaji Naik v. Pradnya Prakash Khadekar[(2017) 5 SCC 496]PositiveThree-Judge Bench holding that abuse of process warrants exemplary costs; emphasizes the sanctity of judicial process.
Usha Nanthini v. Regional Transport Authority, Palakkad[2018 (2) KHC 89]PositiveAffirms that suppression of material facts in writ petitions can lead to dismissal with exemplary costs to deter abuse of process.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN** **THURSDAY,THE 13TH DAY OF SEPTEMBER 2018/22ND BHADRA, 1940** ## **WP(C).No. 14503 of 2018** ## **PETITIONERS:** **THE DEVICOLAM DISTILLERIES LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956,HAVING ITS REGISTERED OFFICE AT 9/764, PARAKKAMUGAL, KUSUMAGIRI P.O, KAKKANAD, ERNAKULAM DISTRICT, REPRESENTED BY ITS AUTHORISED SIGNATORY, ABHILASH P, AGED 36 YEARS,S/O. JAYARAMAN V.T, RESIDING AT ABHI NIVAS, PALLITHODY NAIR HOUSE, SHORANUR P.O, PALAKKAD, PIN - 679 121.** **BY ADVS. SRI.S.P.ARAVINDAKSHAN PILLAY SRI. S.A. ANAND SRI. K.A. BALAN SRI. PETER JOSE CHRISTO SMT. K.N. REMYA SMT. N. SANTHA SRI. V. VARGHESE** **RESPONDENTS: 1 STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695 001. 2 EXCISE COMMISSIONER COMMISSIONERATE OF EXCISE, NANTHAVANAM, VIKAS BHAVAN P.O, THIRUVANANTHAPURAM, PIN - 695 033. 3 JOINT EXCISE COMMISSIONER CENTRAL ZONE, ERNAKULAM, PIN - 682 018. 4 DEPUTY EXCISE COMMISSIONER EXCISE DIVISION OFFICE, ERNAKULAM, PIN - 682 018. 5 EXCISE INSPECTOR (DISTILLERY OFFICER) DEVICOLAM DISTILLERIES LTD, KAKKANAD,PARAKKAMUGAL, KAKKANAD P.O, ERNAKULAM DISTRICT,PIN - 682 030.** **OTHER PRESENT:SRI BIMAL K.NATH, SENIOR GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 13.09.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** W.P.(C)No.14503/2018 2 **“CR”** ## **JUDGMENT** The petitioner, M/s.Devicolam Distilleries Ltd., Kakkanad, a Company registered under the Companies Act, 1956 is the holder of Exts.P1 to P5 licenses issued under Part-I of the Kerala Distillery and Warehouse Rules, 1968, which are valid upto 31.03.2019. The provisions under the said Rules deal with the establishment and working of Distilleries, Warehouses and Excise Depots, regulating the issue and transport of spirit to and therefrom and the inspection and supervision thereof. Ext.P1 is the licence issued to the petitioner in Form-I to manufacture spirits in its Distillery; Ext.P2 is the licence in Form-II for compounding and blending of Indian Made Foreign Liquor and Imported Liquor for the purpose of sale; Ext.P3 is the licence for bottling of Foreign Liquor for the purpose of sale; Ext.P4 is the licence to establish a Warehouse for the deposit and keeping of spirits without payment of duty; and Ext.P5 is the licence for possession and use of non-duty paid imported/ transported Extra-natural Alcohol (neutral spirit for W.P.(C)No.14503/2018 3 alcohol drinks) Grape Spirit/Malt in the Bonded Warehouse. 2. Going by the averments in the writ petition, the petitioner had registered 7 brands of Foreign Liquor for the financial year 2012-13, 6 brands for 2013-14, 5 brands for 2014-15, 18 brands for 2015-16 & 2016-17 and 20 brands for 2017-18. The document marked as Ext.P7 is a consolidated statement dated 'nil', signed by the Authorised Signatory of the petitioner, showing brand registration fee paid for the period 2012-18. Ext.P8 is another statement dated 'nil', signed by the Authorised Signatory of the petitioner, showing the brands registered for the year 2018. It is averred in the writ petition that, for the financial year 2018-19 the petitioner has registered 25 brands. 3. On 25.04.2018, the petitioner filed this writ petition, under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P9 notice dated 02.04.2018 issued by the 5[th] respondent Excise Inspector, Kakkanad, who is the Distillery Officer in the petitioner's Distillery, whereby a total sum of Rs.2,75,000/-, at the rate of Rs.25,000/- per W.P.(C)No.14503/2018 4 brand for 11 brands, was demanded in terms of the proviso to sub-rule (7) of Rule 3 of the Foreign Liquor (Registration of Brand) Rules, 1995, substituted vide the Foreign Liquor (Registration of Brand) Second Amendment Rules, 2012, to clear the stock of Foreign Liquor with brand registration for the financial year 2017-18, before 31.05.2018. The document marked as Ext.P10 is a copy of G.O.(P)No.107/2012/TD dated 14.06.2012 (S.R.O. No. 433/2012), whereby the Government notified the Foreign Liquor (Registration of Brand) Second Amendment Rules, 2012, with effect from 04.04.2012. 4. In paragraph 8 of the writ petition, it is averred that, the petitioner has challenged Ext.P10 amendment made to the Foreign Liquor (Registration of Brand) Rules, 1995 and the consequential demands made by the respondents, compelling the petitioner to pay an amount of Rs.25,000/- for each brand, in order to clear the stock of Foreign Liquor with brand registration for the previous financial year, by filing W.P.(C)No.18501 of 2012, which is pending before this Court. It is also averred that, in similar writ petitions filed by W.P.(C)No.14503/2018 5 certain other Distilleries interim orders staying Ext.P10 notification were obtained and that, Ext.P11 is a true copy of one such interim order issued by this Court dated 06.03.2017 in W.P.(C)No.7383 of 2017. Paragraph 8 of the writ petition reads thus; “8. It is submitted that the petitioner has challenged Ext.P10 amendment made to the Foreign Liquor (Registration of Brand) Rules, 1995 and the consequent demands made by the respondents compelling the petitioner to pay an amount of Rs.25,000/- for each brand for a period of every two months starting from 1[st] April, 2012, in order to clear the stock of foreign liquor with brand registration of the previous financial year kept in the petitioner's Distillery under the joint custody of the licensee and the Distillery Officer in Writ Petition (C)No.18501 of 2012 which is pending before this Honourable Court. It is also submitted that similar Writ Petitions were filed by certain other distilleries and interim order staying Ext.P10 notification were obtained. A true copy of such an interim order dated 06.03.2017 issued by this Honourable Court in W.P.(C)No.7383 of 2017 is produced herewith and marked as **Exhibit P11** .” (underline supplied) 5. In the writ petition, the petitioner would contend that the intention of Ext.P10 notification is to collect an additional fee of Rs.25,000/- per brand W.P.(C)No.14503/2018 6 for clearing the stock of Indian Made Foreign Liquor having brand registration for the previous year. Such subordinate legislation is not contemplated without amending the provisions of the Abkari Act, 1077. As the petitioner has already remitted the entire fees for the year, any further remittances for removal of brands for which fees have already been paid would amount to unjust enrichment to the Government, which is against all mandatory statutory and constitutional provisions. 6. On 27.04.2018, when the writ petition came up for admission before the Vacation Judge, based on an application filed under Section 8 of the Kerala High Court Act, 1958 the matter was ordered to be listed to 08.05.2018 for further consideration. On 08.05.2018, this Court admitted the matter on file. The learned Government Pleader took notice for the respondents. This Court granted an interim stay as prayed for, i.e., stay of operation and all further proceedings pursuant to Ext.P9 notice dated 02.04.2018 of the 5[th] respondent Distillery Officer, for a period of three months. 7. On 27.07.2018, the petitioner filed two interlocutory applications in this writ petition, i.e., W.P.(C)No.14503/2018 7 I.A.Nos.13727 and 13728 of 2018. I.A.No.13727 of 2018 is filed seeking an interim order directing the 2[nd] respondent Excise Commissioner to revalidate the export permit of the petitioner and also to direct the 5[th] respondent Distillery Officer to release the stock to the petitioner, forthwith. I.A.No.13728 of 2018 is filed seeking an order to accept Exts.P39 to P41 as additional documents. 8. In the affidavit accompanying to I.A.No.13727 of 2018, it is averred that the export permit issued to the petitioner dated 09.01.2018 was valid upto 09.03.2018. During the validity of the said permit the petitioner could not export 1000 cases of liquor due to some technical difficulties. Therefore, revalidation of export permit was sought for, which was granted upto 15.06.2018. Based on the export permit, the petitioner approached the 5[th] respondent Distillery Officer to release the stock from the Bonded Warehouse. As the 5[th] respondent failed to release the stock before the expiry of the Export Permit, the petitioner submitted Ext.P39 request dated 12.06.2018 before the 5[th] respondent Distillery Officer and Ext.P40 request dated W.P.(C)No.14503/2018 8 13.06.2018 before the 4[th] respondent Deputy Excise Commissioner, seeking permission to release the stock, so as to enable the petitioner to export 1000 cases of Scarletts Gold Premium Whisky. 9. In Exts.P39 and P40 requests, the petitioner pointed out that, in view of the interim order of this Court dated 08.05.2018 in this writ petition, staying the demand made in Ext.P9 notice dated 02.04.2018 of the 5[th] respondent Distillery Officer, the petitioner may be permitted export 1000 cases of India Made Foreign Liquor. In spite of Exts. P39 and P40, the 4[th] and 5[th] respondents did not release the stock before the expiry of the Export Permit. In such circumstances, the petitioner submitted Ext.P41 request dated 29.06.2018 before the 2[nd] respondent Excise Commissioner for revalidation of the Export permit, after remitting a sum of Rs.20,000/-. 10. On 02.08.2018, when this writ petition came up for consideration, this Court allowed I.A.No.13728 of 2018 and accepted on file Exts.P39 to P41 additional documents. The learned Senior Government Pleader sought time to get instructions. After extending the interim W.P.(C)No.14503/2018 9 order of stay by two weeks, the writ petition was ordered to be listed on 09.08.2018, along with W.P. (C)No.18501 of 2012. On 9.08.2018 the matter was adjourned to 16.08.2018 for filing counter affidavit by the respondents. On 16.08.2018 the matter was adjourned to 10.09.2018, and thereafter, to 12.09.2018. 11. On 12.09.2018, when this writ petition came up for consideration, Sri K.A. Balan, the learned counsel for the petitioner asserted that, in view of Ext.P11 interim order of this Court dated 06.03.2017 in W.P. (C)No.7383 of 2017, there is no justification for respondents 2, 4 and 5 to keep pending the petitioner's request in Exts.P39 to 41. After considering the submissions made by the learned counsel for the petitioner and also the learned Senior Government Pleader for the respondents, this writ petition was ordered to be listed today, along with the Judge's papers of W.P.(C)No.7383 of 2017. 12. Heard Sri K.A. Balan, the learned counsel for the petitioner and also Sri Bimal K. Nath, the learned Senior Government Pleader for the respondents. Perused the Judge's papers of W.P.(C)No.7383 of 2017 filed by W.P.(C)No.14503/2018 10 M/s.Amrut Distilleries Ltd. and also that of W.P. (C)No.18501 of 2012 filed by the petitioner. 13. The Judge's papers of W.P.(C)No.7383 of 2017 would show that the said writ petition is one filed by M/s.Amrut Distilleries Ltd. at Chullimada in Palakkad District, seeking a declaration that Ext.P5 amendment made to the proviso to sub-rule (2) of Rule 3 of the Foreign Liquor (Registration of Brand) Rules, 1995 does not have any application for the financial year 2012- 13. The further relief sought for in that writ petition is a writ of certiorari quash Ext.P6 demand notice dated 18.02.2016 issued by the Distillery Officer of that Distillery, demanding enhanced registration fees at the rate of Rs.2,00,000/- for liquor brands registered in other States, from the financial year 2012-13. The document marked as Ext.P5 in that writ petition is a copy of G.O.(P)No.57/2013/TD dated 30.03.2013 (S.R.O. No. 254/2013), whereby the Government notified the Foreign Liquor (Registration of Brand) Amendment Rules, 2013. In that writ petition, this Court granted Ext.P11 interim order dated 06.03.2017, staying all steps pursuant to Ext.P6 demand W.P.(C)No.14503/2018 11 notice dated 18.02.2016, and the said interim order is still in force. 14. Sri K.A. Balan, the learned counsel for the petitioner, would submit that on account of certain inadvertent mistakes it is averred in paragraph 8 of this writ petition that, in similar writ petitions filed by other Distilleries this Court granted interim order staying Ext.P10 notification dated 14.06.2012 and that, Ext.P11 is a true copy of such an interim order issued by this Court dated 06.03.2017 in W.P.(C)No.7383 of 2017. The learned counsel would also submit that he has produced the said interim order as Ext.P11 in this writ petition, a copy of which was handed over to him by the representative of the petitioner, without noticing that Ext.P10 notification dated 14.06.2012 is not under challenge in W.P.(C)No.7383 of 2017. Sri K.A. Balan, the learned counsel would submit that the petitioner may be permitted to withdraw this writ petition. 15. The Judge's papers of W.P.(C)No.18501 of 2012 would show that, the petitioner filed the said writ petition on 06.08.2012 seeking a writ of certiorari to W.P.(C)No.14503/2018 12 quash Ext.P10 Notification, i.e., G.O.(P)No.107/2012/TD dated 14.06.2012 and an order directing the 1[st] respondent Excise Inspector, Kakkanad, who is the Distillery Officer, to issue permit to the petitioner to dispatch goods without insisting on the payment of Rs.25,000/- per brand. On 07.08.2012, when that writ petition came up for admission, the learned Government Pleader took notice for respondents 1 to 3. The learned Standing Counsel for the Beverages Corporation took notice for the 4[th] respondent. On 06.02.2015 the learned Government Pleader has filed a memo to adopt the counter affidavit dated 28.06.2013 filed by the 1[st] respondent State in W.P.(C)No.15780 of 2012 as the counter affidavit of the 1[st] respondent in W.P. (C)No.18501 of 2012. On 06.02.2018, the petitioner filed reply affidavit in W.P.(C)No.18501 of 2012, to the counter affidavit filed by the 1[st] respondent State. 16. The Judge's papers in W.P.(C)No.15780 of 2012 would show that, the said writ petition filed by M/s.Amrut Distilleries Ltd. was dismissed for nonprosecution, by the judgment of this Court dated W.P.(C)No.14503/2018 13 16.09.2015. Later, by the order dated 23.02.2016 in M.J.C.No.73 of 2016 that writ petition was restored to file, on payment of a cost of Rs.1,000/- to the Kerala High Court Advocates Welfare Trust. In W.P.(C)No.15780 of 2012, there was no interim order staying the operation of the notification dated 14.06.2012, which is marked as Ext.P5 in that writ petition. 17. On 09.03.2018, the petitioner filed I.A.No.4751 of 2018 in W.P.(C)No.18501 of 2012 seeking an order to amend that writ petition by incorporating additional statement of facts, grounds and reliefs. The additional reliefs sought to be incorporated by way of amendment are, a declaration that the amendment brought to the Foreign Liquor (Registration of Brand) Rules, 1995 by Ext.P10 notification is unconstitutional and invalid; and a writ of mandamus commanding the respondents not to enforce Ext.P10 against the petitioner. I.A.No.4751 of 2018 was allowed on 09.03.2018, and the petitioner was directed to file amended writ petition, within a week. 18. On 19.03.2018, the petitioner filed the amended writ petition in W.P.(C)No.18501 of 2012. In W.P.(C)No.14503/2018 14 the amended writ petition filed on 19.03.2018 through the very same counsel, the petitioner has no case that in similar writ petitions filed by other Distilleries this Court granted interim order staying Ext.P10 notification dated 14.06.2012 or that the interim order dated 06.03.2017 in W.P.(C)No.7383 of 2017 (Ext.P11 in this writ petition) is one such order issued by this Court. 19. After filing the amended writ petition in W.P. (C)No.18501 of 2012, the petitioner filed the present writ petition, i.e., W.P.(C)No.14503 of 2018 before the Vacation Judge, challenging Ext.P9 notice dated 02.04.2018 issued by the 5[th] respondent Distillery Officer. The said writ petition, which was filed on 25.04.2018 along with an application under Section 8 of the Kerala High Court Act, 1958 came up for admission before the Vacation Judge on 27.04.2018, which was ordered to be listed to 08.05.2018 for further consideration. On 08.05.2018, this Court admitted the matter on file and granted an interim stay as prayed for, i.e., stay of operation and all further proceedings pursuant to Ext.P9 notice dated 02.04.2018 W.P.(C)No.14503/2018 15 of the 5[th] respondent Distillery Officer, for a period of three months. The statement of facts and grounds in W.P.(C)No.14503 of 2018, to a very large extent, are verbatim reproduction of the amended writ petition in W.P.(C)No.18501 of 2012. 20. The filing of W.P.(C)No.14503 of 2018 before the Vacation Court on 25.04.2018, challenging Ext.P9 notice dated 02.04.2018 of the 5[th] respondent Distillery Officer, with an averment that, in similar writ petitions filed by other Distilleries this Court granted interim order staying Ext.P10 notification dated 14.06.2012 and that, Ext.P11 is a true copy of such an interim order issued by this Court dated 06.03.2017 in W.P.(C)No.7383 of 2017, is nothing but a calculated attempt made by the petitioner to secure interim order by misleading this Court. It is pertinent to note that, in W.P.(C)No.14503 of 2018 no reason whatsoever has been by the petitioner for moving a fresh writ petition before the Vacation Judge challenging Ext.P9 notice dated 02.04.2018 of the 5[th] respondent Distillery Officer, instead of moving a proper interlocutory application in W.P.(C)No.18501 of W.P.(C)No.14503/2018 16 2012 or even fresh writ petition before the regular Bench till 13.04.2018, i.e., prior to the closure of this Court for the summer recess. 21. As stated by Scrutton, L.J., in **R. v.** **Kensington Income Tax Commissioners [(1917) 1 KB 486]** , an applicant who does not come with candid facts and 'clean breast' cannot hold a writ of the Court with 'soiled hands'. Suppression or concealment of material facts is not an advocacy. It is a jugglery, manipulation, maneuvering or misrepresentation, which has no place in equitable and prerogative jurisdiction. 22. In **Prestige Lights Limited v. State Bank of India [(2007) 8 SCC 449]** the Apex Court reiterated that a prerogative remedy is not a matter of course. Therefore, in exercising extraordinary power, a writ court will indeed bear in mind the conduct of the party who is invoking such jurisdiction. If the applicant does not disclose full facts or suppresses relevant materials or is otherwise guilty of misleading the court, the court may dismiss the action without adjudicating the matter. The rule has been evolved in larger public interest to deter unscrupulous litigants W.P.(C)No.14503/2018 17 from abusing the process of court by deceiving it. The very basis of the writ jurisdiction rests in disclosure of true, complete and correct facts. If the material facts are not candidly stated or are suppressed or are distorted, the very functioning of the writ courts would become impossible. 23. In **Prestige Lights' case (supra)** the Apex Court held further that, under Article 226 of the Constitution of India, the High Court is exercising discretionary and extraordinary jurisdiction. Over and above, a Court of Law is also a Court of Equity. It is, therefore, of utmost necessity that when a party approaches a High Court, he must place all the facts before the Court without any reservation. If there is suppression of material facts on the part of the applicant or twisted facts have been placed before the court, the writ court may refuse to entertain the petition and dismiss it without entering into merits of the matter. Paragraphs 33 and 34 of the said judgment read thus: “33. It is thus clear that though the appellant-Company had approached the High Court under Article 226 of the Constitution, it had W.P.(C)No.14503/2018 18 not candidly stated all the facts to the Court. The High Court is exercising discretionary and extraordinary jurisdiction under Article 226 of the Constitution. Over and above, a Court of Law is also a Court of Equity. It is, therefore, of utmost necessity that when a party approaches a High Court, he must place all the facts before the Court without any reservation. If there is suppression of material facts on the part of the applicant or twisted facts have been placed before the Court, the Writ Court may refuse to entertain the petition and dismiss it without entering into merits of the matter. 34. The object underlying the above principle has been succinctly stated by Scrutton, L.J., in **R v. Kensington Income Tax Commissioners, [(1917) 1 KB 486 : 86 LJ KB 257 : 116 LT 136** **(CA)]** , in the following words: "It has been for many years the rule of the Court, and one which it is of the greatest importance to maintain, that when an applicant comes to the Court to obtain relief on an ex parte statement he should make a full and fair disclosure of all the material facts - facts, not law. He must not misstate the law if he can help it - _the court is supposed to know the law. But it knows nothing about the facts_ , and the applicant must state fully and fairly the facts, and the penalty by W.P.(C)No.14503/2018 19 which the Court enforces that obligation is that if it finds out that the facts have not been fully and fairly stated to it, the Court will set aside, any action which it has taken on the faith of the imperfect statement." (Emphasis supplied) 24. In **K.D. Sharma v. Steel Authority of India** **Ltd. [(2008) 12 SCC 481]** , the Apex Court held that the party who invokes the extraordinary jurisdiction of the Apex Court under Article 32 or of a High Court under Article 226 of the Constitution is supposed to be truthful, frank and open. He must disclose all material facts without any reservation even if they are against him. He cannot be allowed to play 'hide and seek' or to 'pick and choose' the facts he likes to disclose and to suppress (keep back) or not to disclose (conceal) other facts. The very basis of the writ jurisdiction rests in disclosure of true and complete (correct) facts. If material facts are suppressed or distorted, the very functioning of writ Courts and exercise would become impossible. The petitioner must disclose all the facts having a bearing on the relief sought without any W.P.(C)No.14503/2018 20 qualification. This is because, "the Court knows law but not facts". In the said decision, the Apex Court held further that, if the primary object as highlighted in **R. v. Kensington Income Tax** **Commissioners [(1917) 1 KB 486]** is kept in mind, an applicant who does not come with candid facts and 'clean breast' cannot hold a writ of the Court with 'soiled hands'. Suppression or concealment of material facts is not an advocacy. It is a jugglery, manipulation, maneuvering or misrepresentation, which has no place in equitable and prerogative jurisdiction. If the applicant does not disclose all the material facts fairly and truly but states them in a distorted manner and misleads the court, the court has inherent power in order to protect itself and to prevent an abuse of its process to discharge the rule nisi and refuse to proceed further with the examination of the case on merits. If the court does not reject the petition on that ground, the court would be failing in its duty. In fact, such an applicant requires to be dealt with for Contempt of Court for abusing the process of the court. W.P.(C)No.14503/2018 21 25. In **Usha Nanthini v. Regional Transport** **Authority, Palakkad and another [2018 (2) KHC 89]** this Court held that, once it is found that the petitioner has approached this Court invoking the extraordinary jurisdiction under Article 226 of the Constitution of India by suppressing material facts and making false statements, such an attempt made by the petitioner to abuse the process of this Court has to be dealt with appropriately. In such cases this Court has ample power to decline the permission sought for withdrawal of the writ petition. Dismissal of such writ petitions imposing exemplary costs is inevitable, in order to prevent abuse of process of this Court and to preserve purity of judicial proceedings. Paragraphs 26 to 28 of the said judgment read thus: “26. In **Dnyandeo Sabaji Naik v. Pradnya Prakash Khadekar [(2017) 5 SCC 496] : [2017 SCC Online SC** **211]** a Three-Judge Bench of the Apex Court held that the Court must view with disfavour any attempt by a litigant to abuse the process. The sanctity of the judicial process will be seriously eroded if such attempts are not dealt with firmly. A litigant who takes liberties with the truth or with the procedures of the Court should be left in no doubt about the consequences to follow. Others W.P.(C)No.14503/2018 22 should not venture along the same path in the hope or on a misplaced expectation of judicial leniency. Exemplary costs are inevitable, and even necessary, in order to ensure that in litigation, as in the law which is practised in our country, there is no premium on the truth. 27. A litigant who invokes the extraordinary jurisdiction of this Court under Art.226 of the Constitution must come with clean hands and clean objects. Any attempt made by a litigant to mislead this Court, either by suppressing materials facts or by filing false affidavits or giving false statements should be curbed with an iron hand. A litigant has every right to withdraw the writ petition filed under Art.226 of the Constitution. However, once it is found that he has approached this Court suppressing materials facts or by filing false affidavits or giving false statements, this Court has ample power to decline the permission sought for withdrawal of that writ petition. Dismissal of such writ petitions imposing exemplary costs is inevitable, and even necessary, in order to prevent abuse of the process of this Court and to preserve the purity of judicial proceedings. 28. In the instant case, a reading of the reply affidavit filed by the petitioner dated 09/01/2018 would show that the said affidavit has been drafted in a casual manner harbouring the notion that this Court is required to grant permission for withdrawal of the writ petition as a matter of course. Once it is found that the petitioner has W.P.(C)No.14503/2018 23 approached this Court suppressing materials facts and making false statements, such an attempt made by the petitioner to abuse the process of this Court has to be dealt with appropriately. In such circumstances, the dismissal of this writ petition imposing exemplary costs is inevitable, declining the permission sought for withdrawal of the same.” 26. Therefore, it is well settled that, a litigant who invokes the extraordinary jurisdiction of this Court under Article 226 of the Constitution must come with clean hands and clean objects. The judicial proceedings are sacrosanct, and no person would be allowed to abuse the judicial process, particularly, in public law remedy. In writ proceedings, the Court places implicit faith on the parties and their pleadings, as it does not indulge in any fact finding or roving enquiry of what has been asserted. Since Article 226 of the Constitution of India espouses equity jurisprudence, a litigant who has approached the Court with unclean hands, without disclosing full facts, is not entitled for any reliefs. 27. As held by the Apex Court in **Dnyandeo Sabaji Naik's case (supra)** a litigant who takes liberties with the truth or with the procedures of the Court should be W.P.(C)No.14503/2018 24 left in no doubt about the consequences to follow. Others should not venture along the same path in the hope or on a misplaced expectation of judicial leniency. Exemplary costs are inevitable, and even necessary, in order to ensure that in litigation, as in the law which is practised in our country, there is no premium on the truth. 28. Therefore, once it is found that the the filing of W.P.(C)No.14503 of 2018 before the Vacation Court on 25.04.2018, challenging Ext.P9 notice dated 02.04.2018 of the 5[th] respondent Distillery Officer, with an averment that, in similar writ petitions filed by other Distilleries this Court granted interim order staying Ext.P10 notification dated 14.06.2012 and that, Ext.P11 is a true copy of such an interim order issued by this Court dated 06.03.2017 in W.P.(C)No.7383 of 2017, is nothing but a calculated attempt made by the petitioner to secure interim order by misleading this Court, petitioner who takes liberties with the truth has to be dealt with appropriately. In such circumstances, the dismissal of this writ petition imposing exemplary costs is inevitable, thereby W.P.(C)No.14503/2018 25 declining the permission sought for withdrawal of the same. 29. In the result, this writ petition is dismissed imposing a cost of **Rs.5,00,000/-** (Rupees Five Lakhs only) payable by the petitioner to the Chief Minister's Distress Relief Fund, to provide relief to flood victims in Kerala. The petitioner shall remit the said amount in the Chief Minister's Distress Relief Fund, within three weeks from this date. Failing which, the State Government shall recover the said amount by initiating revenue recovery proceedings against the petitioner. 30. The remittance/recovery of **Rs.5,00,000/-** (Rupees Five Lakhs only) as cost by/from the petitioner shall be brought to the notice of this Court by way of a memo filed by the learned Senior Government Pleader. The Registry shall place a copy of this Judgment in the Judge's papers of W.P.(C)No.18501 of 2012 filed by the petitioner. **==> picture [400 x 55] intentionally omitted <==** W.P.(C)No.14503/2018 26 ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** - **EXHIBIT P1 TRUE COPY OF THE LICENCE IN FORM -I. EXHIBIT P2 TRUE COPY OF THE LICENCE IN FORM -II. EXHIBIT P3 TRUE COPY OF THE LICENCE IN FORM -III. EXHIBIT P4 TRUE COPY OF THE LICENCE IN FORM -IV. EXHIBIT P5 TRUE COPY OF THE LICENCE IN FORM -IVA. EXHIBIT P6 TRUE COPY OF THE STATEMENT SHOWING COST OF ESTABLISHMENT PAID FROM 2012 TO 2018 TILL DATE.** - **EXHIBIT P7 TRUE COPY OF THE CONSOLIDATED STATEMENT SHOWING THE BRAND REGISTRATION FEE PAID FROM 2012 TO 2018.** - **EXHIBIT P8 TRUE COPY OF THE STATEMENT SHOWING THE DETAILS OF BRANDS REGISTERED FOR THE YEAR 2018.** - **EXHIBIT P9 TRUE COPY OF THE NOTICE NO.DDE2/2018-19 DATED 02.04.2018 BY THE 5TH RESPONDENT.** - **EXHIBIT P10 TRUE COPY OF THE SRO NO.433/2012 DATED 14.06.2012.** - **EXHIBIT P11 TRUE COPY OF THE INTERIM ORDER DATED 06.03.2017 ISSUED BY THIS COURT IN W.P(C) NO.7383 OF 2017.** **EXHIBIT P12 TRUE COPY OF THE E-CHALAN DATED 06.04.2018.** **EXHIBIT P13 TRUE COPY OF THE E-CHALAN DATED 04.04.2018.** - **EXHIBIT P14 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.66 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P15 TRUE COPY OF THE BRAND REGISTRATION** W.P.(C)No.14503/2018 27 **CERTIFICATE NO.67 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P16 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.68 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** - **EXHIBIT P17 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.69 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** - **EXHIBIT P18 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.70 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** - **EXHIBIT P19 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.71 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P20 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.95 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** - **EXHIBIT P21 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.96 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P22 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.121 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P23 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.123 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P24 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.124 DATED 28.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P25 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.151 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P26 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.152 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** W.P.(C)No.14503/2018 28 **EXHIBIT P27 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.153 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P28 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.154 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P29 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.155 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** - **EXHIBIT P30 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.156 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P31 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.157 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P32 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.158 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P33 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.159 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** - **EXHIBIT P34 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.160 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P35 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.161 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P36 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.162 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P37 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.163 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** **EXHIBIT P38 TRUE COPY OF THE BRAND REGISTRATION CERTIFICATE NO.164 DATED 31.03.2018 ISSUED BY THE 2ND RESPONDENT.** W.P.(C)No.14503/2018 29 **EXHIBIT P39** **TRUE COPY OF LETTER DATED 12.6.2018 OF THE PETITIONER TO THE 5TH RESPONDENT.** **EXHIBIT P40** **TRUE COPY OF LETTER DATED 13.6.2018 OF THE PETITIONER TO THE 4TH RESPONDENT.** **EXHIBIT P41** **TRUE COPY OF APPLICATION DATED 29.6.2018 OF THE PETITIONER TO THE 2ND RESPONDENT.** **RESPONDENTS' EXTS: NIL** ## **TRUE COPY** **P.A. TO JUDGE**