Pernod Ricard India (P) Ltd vs State Of Madhya Pradesh 2024 INSC 327- MP Foreign Liquor Rules -General Clauses Act

Madhya Pradesh Foreign Liquor Rules, 1996-Whether it is the rule that existed when the violation occurred during the license period of 2009-10 or the rule that was substituted in 2011 when proceedings for penalty were initiated? If the amendment by way of a substitution in 2011 is intended to reduce the quantum of penalty for better administration and regulation of foreign liquor, there is no justification to ignore the subject and context of the amendment and permit the State to recover the penalty as per the unamended Rule.- . The subject of administration of liquor requires close monitoring and the amendment must be seen in this context of bringing about good governance and effective management. Seen in this context, the principle of Section 10 of MP General Clauses Act, 1957, relating continuation of a repealed provision to rights and liabilities that accrued during the subsistence of the Rule does not subserve the purpose and object of the amendment. (Para 32)

General Clauses Act, 1897 – Interpretation statutes such as the General Clauses Act, 1897, are enactments intended to set standards in construction of statutes. The expression construction is of seminal importance as it is oriented towards enabling a seeker of the text of a statute to understand the true meaning of the words and their intendment. Apart from setting coherent and consistent methods of understanding enactments, the interpretation statutes also subserve the purpose of reducing prolixity of legislations. The standard principles formulated in the interpretation statutes must, therefore, be read into any and every enactment falling for consideration- Interpretation statutes or definitions in interpretation clauses are only internal aids of construction of a statute. (Para 24-28)

Subordinate Legislation – Without a statutory empowerment, subordinate legislation will always commence to operate only from the date of its issuance and at the same time, cease to exist from the date of its deletion or withdrawal – The legislative authorization enabling the executive to make rules prospectively or retrospectively is crucial- The operation of a subordinate legislation is determined by the empowerment of the parent act.. (Para 14)

Legislation -Repeal and Substitution – A repealed provision will cease to operate from the date of repeal and the substituted provision will commence to operate from the date of its substitution. This principle is subject to specific statutory prescription. Statute can enable the repealed provision to continue to apply to transactions that have commenced before the repeal. Similarly, a substituted provision which operates prospectively, if it affects vested 11 rights, subject to statutory prescriptions, can also operate retrospectively. (Para 13)

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