Supreme Court vacates stay on Punjab and Haryana HC’s order on Chandigarh’s liquor vends
The controversy began when the Chandigarh liquor vends tendering process for the financial year 2025-2026 came under judicial scrutiny
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A detailed order meanwhile was yet to be released in the matterThe Supreme Court on Tuesday vacated the stay on the order of the Punjab and Haryana High Court, in which it was ordered that those granted licences shall not operate their liquor business at their respective vends beyond March 31, 2025. A detailed order meanwhile was yet to be released in the matter.
Disposing of a special leave petition (SLP) filed by the Chandigarh Administration, challenging the order of the high court, a division bench comprising Justice Dipankar Datta and Justice Manmohan granted two weeks to the parties involved — Chandigarh Administration, Kler Wines, and others — to complete the pleadings. The bench further directed the high court to take up the matter for final disposal immediately after the pleadings are completed.
Meanwhile, the apex court also clarified that in the event the high court bench is unable to resolve the issue on the scheduled date, it may issue appropriate interim orders after hearing both parties and providing reasons for the same.
The high court on March 26, while hearing the three petitions filed by M/S Kler Wines and another, had directed a status quo on the liquor vends issue, instructing that those granted liquor vends should not continue their liquor business at the respective outlets beyond March 31, 2025.
At the Supreme Court, for petitioner, Chandigarh Administration, Tushar Mehta, Solicitor General of India, appeared, while for respondents, Kler Wines and others, senior advocates Mukul Rohtagi, Puneet Bali and Bikramjit Singh Patwalia made the representation.
Earlier, on March 26, the high court had issued a notice of motion to the Chandigarh Administration for April 3, while ordering the maintenance of the status quo on three petitions challenging the liquor vends tendering process in Chandigarh. The high court had raised concerns over the allocation of liquor vends, orally observing that granting even 10 vends to a single entity went against the provisions of the Competition Act. The act aims to curb practices detrimental to competition, encourage fair trade, and safeguard consumer interests.
The controversy began when the Chandigarh liquor vends tendering process for the financial year 2025-2026 came under judicial scrutiny. A contractor alleged cartelisation and violations of the excise policy, claiming that the tender results indicated that over 87 out of 97 vends were allocated to merely two or three individuals. These individuals allegedly operated under different firm names or through their relatives, associates, and employees.
One of the petitions, filed by M/S Kler Wines and another, argued that the entire tendering process was carried out in violation of prescribed rules. The petitioners contended that the notice inviting tender (NIT) issued on March 13 was flawed and that the process itself was indicative of collusion among bidders.
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