• Does government allow retail liquor shop licenses to default supplier and create liability

Namaste:
My Simple Query:

Does Maharashtra Government allows Retail Liquor Shop License holder to default liquor traders / distributors / supplier & create Liability on licensed shops.

Is there any provisions in Law / Act / Notification / Order / Judgement available...

In Maharashtra, Liquor licensee is issued by state government through Excise Department which is renewed every year in March.
Can a license holder (licensee) create liability on license by purchasing stocks of goods on credit terms.
What is governments responsibility being License Issuer or License Owner when license holder's cheque is return unpaid and outstanding remains unpaid on 31st March.

Are there any provision allowed by State Excise Act & Rules.

Thanks

Pankaj Kumar
Asked 2 years ago in Criminal Law
Religion: Christian

First answer received in 30 minutes.

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6 Answers

The license holder is liable to pay the amount towards the purchase of the stock to the government and if the cheque issued by the license holder is dishonored then the legal action as per law can be initiated by the government besides seizing the balance stock held by the license holder.

 

T Kalaiselvan
Advocate, Vellore
88057 Answers
2377 Consultations

No he can't as the owner of the said license is govt

Prashant Nayak
Advocate, Mumbai
33128 Answers
215 Consultations

If license holder cheque has bounced remedy of creditors is to file complaint against defaulter under section 138 NI 

 

2) creditors can also sue license holder to recover their dues with interest 

 

3) government is not responsible for failure of license holder to pay creditors their dues 

 

4) as far as purchase goods on contracts is concerned it is up to suppliers whether they want to supply goods on credit or not 

Ajay Sethi
Advocate, Mumbai
97856 Answers
7937 Consultations

license is government property . no one has right to transfer it without government approval 

Ajay Sethi
Advocate, Mumbai
97856 Answers
7937 Consultations

As far as the license holder is concerned he has obtained licens to purchase and sell the liquor as per the rules of the state government.

He cannot create any liability against the government department in this regard.

If he violates any rule or breaches any conditions therein he would be liable for the legal consequences. 

T Kalaiselvan
Advocate, Vellore
88057 Answers
2377 Consultations

Yes, it's, illegal under Maharashtra prohibition Act

Prashant Nayak
Advocate, Mumbai
33128 Answers
215 Consultations

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