- 1 - HC-KAR NC: 2026:KHC:22228 WP No. 18614 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF APRIL, 2026 BEFORE THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.18614 OF 2025 (EXCISE) BETWEEN: E. PAMPAPATHI S/O LATE E. NARAYANAPPA, AGED ABOUT 75 YEARS, R/AT TILAK NAGAR, MOLAKALMURU TOWN, CHITRADURGA DISTRICT-572201. …PETITIONER (BY SMT. SUDHA D., ADVOCATE) AND: 1. THE STATE OF KARNATAKA, BY ITS ADDITIONAL CHIEF SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BENGALURU-560001. 2. THE EXCISE COMMISSIONER IN KARNATAKA, 2ND FLOOR, TTMC, ‘A’ BLOCK, BMTC BUILDING, SHANTINAGAR, BENGALURU-560027. 3. THE DEPUTY COMMISSIONER, CHITRADURGA DISTRICT, CHITRADURGA-577501. 4. THE DEPUTY COMMISSIONER OF EXCISE, CHELLAKERE DIVISION, CHITRADURGA DISTRICT-577522. …RESPONDENTS (BY SRI MANJUNATH B., AGA FOR R-1 TO R-4) Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:22228 WP No. 18614 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE IMPUGNED ENDORSEMENT DATED 11.04.2016 IN NO.EXE/DCE/MOVA/DOORU/45/2015-16 AND ENDORSEMENT DATED 18.12.2018 IN NO.EXE/IML/MLK/ITHARE/01/2018-19 AS PER ANNEXURE-C AND F ISSUED BY THE 4TH RESPONDENT AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA ORAL ORDER The petitioner has approached this Court seeking to quash the impugned endorsements dated 11.04.2016 (Annexure-C) and 18.12.2018 (Annexure-F) issued by respondent No.4, mandamus directing respondent No.3- Licensing Authority to consider the application dated 09.10.2023 (Annexure-E) submitted by the petitioner for grant of CL-2 licence in terms of Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968 (‘the Rules’ for short). By the impugned endorsements, the Licensing Authority has intimated the petitioner that in view of the policy decision of the State Government not to issue fresh - 3 - HC-KAR NC: 2026:KHC:22228 WP No. 18614 of 2025 licenses, the application seeking grant of CL-2 license cannot be considered. 2. Learned counsel for the petitioner submits that the petitioner had applied for grant of licence for retail vending of liquor and remitted the prescribed licence fee of `20,000/- under a receipt dated 31.05.1994. As the application was not considered, the petitioner made several representations. Ultimately, an endorsement dated 11.04.2016 came to be issued, stating that in view of the policy of the Government, fresh licence cannot be issued. It is submitted that though the application was rejected in the year 2016, the amount paid by the petitioner has not been refunded till date. 3. Per Contra, learned AGA for the respondents submits that, the petitioner has not submitted any representation seeking refund of the licence fee along with the bank details, and therefore, cannot now seek relief before this Court. - 4 - HC-KAR NC: 2026:KHC:22228 WP No. 18614 of 2025 4. Heard the learned counsel on both sides and perused the material on record. 5. It is not in dispute that the petitioner has made an application for grant of licence and remitted the prescribed fee of `20,000/- on 31.05.1994. It is also not in dispute that the licence was not granted and an endorsement came to be issued in the year 2016, stating that the application cannot be considered in view of the policy decision of the Government to stop issuance of fresh licences. 6. The amount paid by the petitioner has remained with the respondent-State since 1994. The contention of the learned AGA that the petitioner ought to have submitted representation seeking refund does not merit acceptance. Once the respondent denied to grant a licence, it was incumbent upon the authorities either to consider the application in accordance with law or refund the amount collected. Having failed to do so, the - 5 - HC-KAR NC: 2026:KHC:22228 WP No. 18614 of 2025 respondents have clearly failed to discharge their statutory obligation. Retention of money for more than two decades without either granting licence or refunding the amount is arbitrary and unsustainable. The petitioner, is therefore, entitled for refund of the licence fee, along with reasonable interest. Accordingly, the following: ORDER i. The writ petition is allowed-in-part. ii. Respondent No.3-Licensing Authority is directed to refund the licence fee along with 6% interest from 31.05.1994. iii. The petitioner shall furnish his bank details to the respondent No.3-Licensing Authority within a period of two (02) weeks from the date of receipt of copy of this order. iv. Respondent No.3-Licensing Authority on such receipt of details, shall refund the amount with accrued interest within four (04) weeks thereafter. - 6 - HC-KAR NC: 2026:KHC:22228 WP No. 18614 of 2025 v. In the event of failure to comply within the stipulated time, the amount shall carry interest at 12% p.a. from the date of default till realization. Sd/- _____________________ JUSTICE K.S. HEMALEKHA MBM List No.: 1 Sl No.: 54