SC allows Kerala bars to sell liquor till 30 September

The Supreme Court today ordered status quo on the functioning of bars in Kerala, allowing bars other than those attached to five star hotels to serve liquor till 30 September and asked the state high court to decide on the petition against the state government notification directing them to shut shop by this date.

A bench of Justice Anil R Dave and Justice UU Lalit asked the Kerala High Court to hear the bar-owners' petition challenging the state government notification asking them to down shutters.

The Kerala government had passed an order banning the sale of liquor at bars and hotels below five-star category and the ban order was to come into force on 11 September.

The Congress-led UDF government last month decided to shut around 700 bars attached to hotels below five-star categories in a policy shift.

Owners of hotels affected by the order banning sale of liquor told the Supreme Court on Wednesday that the move was discriminatory and would hit their business as their tourist bookings were already done.

The apex court left decision on the matter to the high court as it better knows the reasons for the ban and can accordingly decide the matter pending before it.

Senior lawyers, including Fali Nariman, Ram Jethmalani, CA Sundaram, Rajiv Dhawan, Dushyant Dave and others appeared for a number of petitioners while state government was represented by Kapil Sibal who argued that it was a policy matter and it could not be stayed.

The Supreme Court, however, was not convinced by the stat government's explanations "What is the logic behind this? We don't see any logic," the bench said.

"For so many years they have been doing the business, logically can you ban it overnight?" it asked Sibal who appeared for the Kerala government.

Apparently not persuaded by the state's position, the court wondered how it is that a person with a fat purse could go to a five star hotel bar and have a drink while another person has no such option.

"Educate the people. It is a social problem," it observed as Sibal resisted the contention that the prohibition on serving liquor at bars other than in five star hotels was discriminatory.

The court, which had wondered at the logic behind banning liquor in bars outside five star hotels during the mentioning of the matter Wednesday, inquired Thursday: "What is the distinction between four star and five star hotels."

Stating that there was a huge difference between the customers visiting the two, Sibal told the court that alcohol was a huge problem in Kerala as "maximum liquor is consumed by the people" in the state.

He, however, conceded that the only ground on which the policy could be contested is on article 14 of the constitution guaranteeing equality before law.

Defending the ban, Sibal said that the liquor was available at the retail outlets and people can buy and drink at their homes. Drinking at home, with the wife and children being present, was a hindrance, he noted.

Assailing the prohibition policy that would come into force in phases over ten years, Sundaram said the policy envisages phasing out 10 per cent retail outlets every year but mocked it, saying it does not talk about the quantity of liquor to be sold over the succeeding years.

Dhawan said the issue was whether the government can take coercive steps during the pendency of the litigation over the issue, noting the licences of the affected bar owners were valid till 31 March 2015, and they should be allowed to operate till then. Thereafter, the government can take a call not to renew them, he said.

Contending that the balance of convenience was in favour of bar owners faced with a shut down, senior counsel Ram Jethmalani said there were constitutional and legal objections to the policy. He said that licences that are valid till 31 March 2015, could not be cancelled by the government by creating new grounds by an executive order.

Taking a dig at the political class, Dave asked: "Tell us how many parliamentarians and MLAs drink." He said that policy was about phasing out retail outlets over a period of 10 years and 80 per cent of liquor was sold at these outlets.