In Brief
The Supreme Court (by majority) struck down Rule 24(i-eeee) of the Haryana Liquor License Rules 1970, which created a single L-1BF (imported foreign liquor) license for the entire State of Haryana. The majority held that under Section 58(2)(e) of the Punjab Excise Act, 1914, only the State Government—not the Financial Commissioner—has power to determine the number of licenses in any local area. The Financial Commissioner's authority under Section 59(a) to regulate supply and sale applies only after licenses are granted to local areas, not to fix the number of licenses for the entire State. The dissenting judge disagreed, holding that regulatory power includes determining the number of licenses. The majority's decision invalidated the monopoly arrangement and remitted the matter to allow multiple licenses.
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