In Brief
Gwalior Distilleries, holding a D-1 licence, applied for a CS-1 licence to manufacture and wholesale country spirit in Madhya Pradesh. The application was rejected solely because it did not participate in a 2018-19 tender process. The Supreme Court held that neither the Excise Act, 1915 nor the state rules require tender participation or area allotment as legal conditions for granting a CS-1 licence. While the State cannot be forced to grant liquor manufacturing rights, when it chooses to do so it must follow the law and cannot act arbitrarily or discriminate. The Court allowed the appeal and directed reconsideration of the application in accordance with law, without insisting on tender participation or area allotment conditions.
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