Monday, March 2, 2026

Supreme Court sets aside order by Justices P. B. Bajanthri, Alok Kumar Pandey, all points on merits are left open

In United Spirits Limited vs. The State of Bihar (2026), Supreme Court's Division Bench of Justices Dipankar Datta and Satish Chandra Sharma passed a 4-page long order dated February 27, 2026, wherein, it set aside the order dated July 1, 2024 by Justices P. B. Bajanthri and Alok Kumar Pandey of Patna High Court.  The order reads:"Bearing in mind the fact that during the pendency of the special leave petition, a further order dated 22nd April, 2025 has been passed by the State adversely affecting the respondent’s interest, we dispose of the appeal by granting liberty to the respondent to challenge such order dated 22nd April, 2025 before the appropriate forum in appropriate proceedings, if so advised. 4. The order dated 01st July, 2024 impugned in this appeal, however, stands set aside. 5. Mr. Nadkarni assures that for a period of four weeks, no coercive action shall be taken against the respondent.6. All points on merits are left open."A.N.S. Nadkarni, the senior counsel appeared for the State of Bihar. 

The High Court's 4-page long judgement dated July 1, 2024 by Justices Bajanthri and Pandey in United Spirits Limited vs. The State of Bihar & Ors. (2024) Civil Writ Jurisdiction Case No.11851 of 2022 recorded the following prayers of the petitioner. :-
“i. Issuance of a writ of certiorari or any other appropriate writ(s), order (s), or direction, quashing the letter dated 19.07.2019 (First Impugned Order), as contained in letter no. 361 (Annexure-14), by which the respondent no.5, has notified that demurrage charges has been imposed on the petitioner, for the stocks or liquor lying in its godown, during the period from April, 2016 to September, 2017 which had been supplied by the petitioner and its related manufacturers;
ii. Issuance of a writ of certiorari or any other appropriate writ(s), order(s), or direction, quashing the letter dated 09.03.2022 (Second Impugned Order), as contained in letter no. 178 (Annexure-16), by which the petitioner has been threatened with coercive action on failure to deposit the balance amount of demurrage charges imposed on it and its related manufacturers/suppliers;
iii. Direct the respondent no. 4 & 5 to refund a sum of Rs. 3,82,65,314.40, unlawfully adjusted from the impugned demand of demurrage charges imposed upon the petitioner;
iv. To restrain the respondents from taking any coercive steps for recovery of impugned Demurrage charges from the petitioner;
v. Pass such other order(s) as your Lordship may deem fit and proper in the facts and circumstances of the present case.”

The judgement states that insofar as prayer no. (iii) namely "iii. Direct the respondent no. 4 & 5 to refund a sum of Rs. 3,82,65,314.40, unlawfully adjusted from the impugned demand of demurrage charges imposed upon the petitioner;" the counsel for the petitioner submitted that the aforementioned amount was stated to be towards sale transaction by the Bihar State Beverage Corporation Limited on behalf of petitioner as an agency read with security deposit with Corporation. The aforementioned amount was required to be disbursed.  

The counsel for the respondents raised objection to the extent that he needs instruction in this regard. The matter was re-listed this matter on June 21, 2024. One more opportunity was given to the State-Respondent on June 21, 2024. On July 1, 2024 also, counsel for the Respondents sought time but was  declined for the reasons that sufficient time was provided.

The High Court's judgement set aside the impugned letter/order no. 361, dated 11.07.2019 (Annexure-14) and Letter/order no. 178, dated 09.03.2022 (Annexure-16) in the light of Co-ordinate Bench order dated 20.03.2024 passed in C.W.J.C. No. 7463 of 2020 in the case of Malson Coors Cobra India Pvt. Ltd. Versus The State of Bihar and Ors. The judgement concluded: "5. The concerned respondent is hereby directed to
calculate which are dues to be paid to the petitioner and refund the same in accordance with law within a period of three months from the date of receipt of this order. 6. With the aforementioned directions, the present petition stands allowed." Supreme Court has set aside this order authored by Justice Bajanthri.  

The High Court's order dated June 21, 2024 by Justices Bajanthri and Pandey reads: "Learned counsel for the State seeks time insofar as securing instruction in the light of earlier order dated 08.05.2024. 2. Re-list this matter on 28.06.2024." 

Prior to this an order dated May 8, 2024 was passed by Justice Bajanthri. It reads: "Today, learned counsel for the respondents on instruction submitted that the present matter is covered by orders of this Court dated 20.03.2024 passed in CWJC No. 7463 of 2020 (Molson Coors Cobra India Pvt. Ltd. vs. The State of Bihar & Ors.). 2. On the other hand, learned counsel for the petitioner insofar as prayer no. (iii) namely "iii. Direct the respondent no. 4 & 5 to refund a sum of Rs. 3,82,65,314.40, unlawfully adjusted from the impugned demand of demurrage charges imposed upon the petitioner;" 3. It is submitted that the aforementioned amount is stated to be towards sale transaction by the Bihar State Beverage Corporation Limited on behalf of petitioner as an agency read with security deposit with Corporation. The aforementioned amount was required to be disbursed. 4. At this juncture, learned counsel for the respondents raised objection to the extent that he needs instruction in this regard. 5. Re-list this matter on 21.06.2024."

Notably, the High Court's order dated April 24, 2024 reveals that counsel for the respondents had sought time to verify whether the present matter is covered by earlier decision of this Court passed in C.W.J.C. No. 7463 of 2020 or not?"

Earlier,  on September 2, 2022, by the High Court's order the case was admitted. The order reads: "No coercive action shall be taken against the petitioner without the leave of the Court." The proceedings of the Court were conducted by Justice Sanjay Karol, the Chief Justice and Justice S. Kumar through video conferencing from their residential offices/residences. The Advocates and the Staffs joined the proceedings through Video Conferencing from their residences/offices. The case was filed in the High Court on August 5, 2022 and registered on August 17, 2022. The five respondents were: The State of Bihar through the Principal Secretary, Registration, Excise and Prohibition Department, Government of Bihar, Excise Commissioner, Bihar, Assistant Commissioner of Excise, Patna, Bihar State Beverage Corporation Limited through its Managing Director and General Manager, Operation - I, The Bihar State Beverage Corporation Limited.  

The case was filed in the Supreme Court on September 25, 2024. It was registered on October  23, 2024. It was verified on November 25, 2024. 


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