This article is written by Shriya Singh. It seeks to discuss in detail the state legislation of Tamil Nadu regarding the prohibition of liquor, intoxicating drugs, or any other substance containing such intoxicating matter. It covers the important definitions, the prohibition regarding manufacture and consumption, as well as the punishment provided under the Act. Furthermore, it discusses the exemptions and licences, the powers, duties, and procedures of officers, rules and regulations, as well as the legal proceedings.

Introduction

The grundnorm of India, that is, the Constitution of India, provides a Directive Principle of State Policy under Article 47 that proclaims that the State shall endeavour to bring about prohibition of consumption except for medical purposes of intoxicating drinks and of drugs that are injurious to health. Such prohibition is necessary in order to raise the level of nutrition and standard of living of people as well as to improve public health, which is a fundamental right guaranteed under the Constitution of India.

As the objectives in the body of the Constitution are of a socialistic nature, it is necessary to maintain a balance between the social and economic objectives. In light of the importance of the stated notion, the state of Tamil Nadu introduced prohibitory legislation regarding liquor intoxicating drugs, or any other substance that contains such intoxicating matter in the whole state. 

Let us delve deeper into the discussion regarding it.

Prohibition of alcohol in Tamil Nadu

The Tamil Nadu Prohibition Act, 1937 (hereinafter referred to as the Act, 1937) provides for the provisions relating to the prohibition of the manufacture, sale, and consumption of intoxicating liquors and drugs in the State of Tamil Nadu. Let us discuss all the chapters of the Act in detail.

Chapter 1 of Tamil Nadu Prohibition Act, 1937 : preliminary

Chapter I of the Act, 1937 deals with the preliminary portion of the Act by providing the short title and extent of the Act along with its commencement and definitions, which are crucial in understanding the whole Act.

Extent of the Act

The Act, 1937 as per Section 1(2) extends to the whole of the state of Tamil Nadu as it is state legislation.

Exceptions

The exceptions regarding the application of the Act, 1937 are outlined in Section 1(3). It specifies that this section, together with Sections 3 and 6, will all take effect immediately across the State of Tamil Nadu.

The remaining provisions of the Act, 1937, however, will take effect as follows:

• immediately in the Salem district, and
• on that date, in any other locality within the State of Tamil Nadu, as the State Government of Tamil Nadu may specify, by notification.

Important definitions

Bottle 

The term ‘bottle’ for the purpose of the Act, 1937, is defined under Section 3(1-A) and states that it means to transfer liquor from a cask or any other vessel to a bottle, jar, flask, pot, or any other container eligible for the purpose of sale, and it does not matter whether any process regarding the manufacture is indulged in or not. It also includes rebottling within its ambit.

Collector

Section 3(3) of the Act, 1937, defines the term ‘collector’ as a collector of land revenue or any other person appointed in that record under Section 25(d) to perform the required duty of a collector for the purpose of this Act. 

Section 25(d) states that the State Government of Tamil Nadu is empowered to appoint a paid or honorary officer with such designation power or duties as the state government may think fit from time to time by notification.

The explanation to Section 3(3) purports that the collector of land revenue includes an additional collector as well as a district revenue officer.

Commissioner

Section 3(4) of the Act, 1937 states that a commissioner is an officer appointed under Section 25(a) of the same Act. 

Section 25(a) states that the State Government of Tamil Nadu can, from time to time, appoint an officer, by notification, to exercise all the powers of a collector required under this Act in all local areas in which the Act is enforced. Such an officer can also be appointed in order to have control of the administration of the provisions of this Act in the areas in which the Act is applicable.

Cultivation

The term ‘cultivation’ is defined under Section 3(5) after the Act, 1937 and it states that cultivation is inclusive of protecting or tending a plant during its growth, and the process does not necessarily imply that such a plant is raised from seed.

Excisable Article

Section 3(5-A) defines the ‘excisable article’ as any alcoholic liquor suitable for human consumption. It further states that the excisable article does not include medical and toilet preparations mentioned in Entry 48 belonging to List I of the Seventh Schedule of the Constitution of India.

Export

The term ‘export’ is defined under Section 3(6) of the Act, 1937. It states that export means to take out of any local area, to which the Act is applicable, any other area in the state of Tamil Nadu to which the Act has not yet been made applicable.

The provision is extended to cover the taking out of the state of Tamil Nadu, including crossing the customs frontiers of India.

Foreign liquor

Section 3(6-A) defines the term ‘foreign liquor’ to include every liquor that is imported into India, barring the foreign spirits made in India, plain rectified spirits, and denatured and methylated spirits.

Import

Section 3(7) of the Act, 1937 defines the term ‘import’. In common parlance, import means bringing products or services from one country to another. In accordance with the definition provided under this Act, import refers to bringing things into any local area of the state of Tamil Nadu where the Act is applicable. Further, the things are brought from any other local area of the state of Tamil Nadu where the Act is not applicable yet. 

The proviso attached to this provision envisages that import also implies bringing something into the state of Tamil Nadu which includes the crossing of customs frontiers of India.

Indian-made foreign spirits

Section 3(7-A) of the Act, 1937 defines ‘Indian-made foreign spirits’. It states that the Indian-made foreign spirits are the spirits that are manufactured and compounded in India. These spirits are made in flavour and colour to resemble gin, brandy, whisky, and rum that are imported into India. The provision further states that these foreign spirits that are made in India include milk punch and other liquors consisting of or containing spirits.

Intoxicating drug

Section 3(8) defines an intoxicating drug by dividing it into four categories, which are: 

1. The leaves, small stalks, and flowering or fruiting tops of the Indian hemp plant, which is also referred to as connadis satival, includes all forms of bhang, siddhi, and ganja, as they are known. 
2. Charas, which is the resin that is obtained from the Indian hemp plant. These should not have been subjected to any manipulation other than those necessary for packing and transport. 
3. Any mixture of the above two mentioned forms of intoxicating drug or any drink prepared from them with or without neutral materials. 
4. Any other intoxicating or narcotic substance that the State Government of Tamil Nadu may declare to be an intoxicating drug by notification. However, opium cocoa leaf or a manufactured drug as described in Section 2 of the Dangerous Drugs Act, 1930, does not come within the ambit of such declaration.

Liquor

Liquor is defined under Section 3(9) of the Act, 1937. The provision states that liquor includes toddy or arrack, spirits or wine spirits, which are also referred to as denatured spirits, wine, beer, and all liquids consisting of or containing alcohol.

The explanation of the same provision further defines the term ‘denatured’. It states that being denatured means being subjected to all processes prescribed by the State Government of Tamil Nadu for the purpose of rendering it unfit for human consumption. Such a prescription would be made by notification.

Local body

Section 3(10) provides the definition for the term ‘local body’ and states that it means: 

1. The Corporation of Chennai, 
2. Any municipality that is constituted under the Tamil Nadu District Municipalities Act, 1920, or
3. Any other local board that is constituted under the Tamil Nadu Local Boards Act, 1920.

Manufacture

According to Section 3(11) of the Act,1937 manufacture means every process by which any fermented, spiritual, or intoxicating liquor or drug is produced, prepared, or blended, irrespective of whether the process is natural or artificial. It also includes re-distillation and every other process for the rectification of liquor.

Molasses

The term ‘molasses’ as per Section 3(11-A) of the Act, 1937 is defined as a heavy, dark coloured residual syrup that is drained away in the final stage of manufacturing jaggery, which is commonly known as gur, or a solution that contains sugar or suspension sugars that can be fermented. 

It further states that it includes any product that is formed by the addition to such symp of any ingredient which does not substantially alter the character of such syrup.

However, it does not include any article that the State Government of Tamil Nadu declares not to be included for the purpose of this Act by notification.

Neer or Padani

Section 3(11-B) defines ‘neer or padani’ as juice drawn from a coconut, date, palmyra, or any other kind of palm tree into receptacles treated so as to prevent any fermentation. These should not be fermented for this purpose.

Spirits

Section 3(17) of the Act, 1937, defines the term ‘spirits’ as any alcohol. The provision further states that it includes any liquor that contains alcohol and is obtained by distillation, whether such liquid is denatured or not.

Toddy

‘Toddy’ has been defined under Section 3(19) as fermented juice that is drawn from date, coconut, palmyra, or any other type of palm tree.

Chapter 2 of Tamil Nadu Prohibition Act, 1937 : prohibitions and penalties 

Chapter II of the Act, 1937 deals with prohibitions and penalties with respect to the manufacturing, trafficking, and consumption of liquor and intoxicating drugs. It also deals with the advertisement regarding the aforementioned and the conspiracy that surrounds the prohibitory acts with regard to their prohibition and punishment. 

Let us understand the chapter in detail.

Prohibition on manufacture, traffic, and consumption

Section 4 of the Act, 1937 explicitly provides for certain activities that are not permitted. Further, it provides penalties if these prohibited activities are ever carried out. The punishment has been provided keeping in mind the gravity of the result caused by such activity. Also, there are certain areas where this prohibition of Section 4 does not apply, and the provision also simplifies that.

Prohibited activities

Section 4(1) of the Act, 1937, lists certain activities that are prohibited, and hence the commission of which becomes punishable. The activities are given below:

• The activity of importing, exporting, transporting, or processing of liquor or any intoxicating drug.
• The activity of importing, exporting, transporting, or processing liquor that exceeds 50 litres but is less than one hundred litres in quantity. 
• The activity of importing, exporting, transporting, or processing liquor, the quantity of which is a hundred litres or above. 
• The manufacturing of liquor or any intoxicating drugs. 
• Cultivating the hemp plant in any other manner except in accordance with the rules that are made by the State Government of Tamil Nadu on this behalf. Also, the collection of any portion of such a plant from which the intoxicating drugs can be manufactured.
• Tapping any tree capable of producing toddy and permitting toddy to be drawn from any such tree that belongs to him or her or are in his or her possession. 
• Drawing a toddy from any tree or granting permission to others to draw it from any three that belong to him or her or is in his or her possession. 
• Constructing any distillery or brewery. 
• Using, keeping, or having in place any material, still, utensil, implement, or apparatus in order to tap toddy or manufacture liquor or any other intoxicating drug. Also, keeping or having any material that has undergone any process in order to manufacture liquor or other intoxicating drugs in his or her possession.
• The activity of bottling any liquor to produce it for sale purposes. 
• The activity of selling liquor or any other intoxicating drugs.
• Consumption or even buying any liquor that has not been specified by the State Government of Tamil Nadu is eligible for search purposes through a notification of any intoxicating drug. 
• Investing or applying any monetary resource in the direct furtherance or support of the commission of the prohibited acts that are mentioned above. Also, such felicitation has to be done with prior knowledge.
• Allowing any of the acts that have been mentioned above upon any premises to be in his or her immediate possession.

Non-applicability of Section 4(1)

The proviso to Section 4(1) of the Act, 1937,  provides that nothing contained in the provision shall apply to:

• Any act that is done under or in accordance with the provisions of this Act or the terms of any rules, notifications, orders, licences or permissions that are issued there under. 
• The possession, sale, purchase, usage and consumption of duty that is paid for medicinal or toilet preparations for bonafide medicinal or toilet purposes. 
• The transport or possession of personal consumption of the prescribed quantity of liquor that is specified by the State Government of Tamil Nadu.

Punishment for prohibitory activities

Rigorous imprisonment for a term that may extend to three years and a fine that may extend to ten thousand rupees are provided for the activities that are mentioned below

• The activity regarding the imports, exports, transports, or procession of liquor in quantities of one hundred litres and above,
• The activity regarding the manufacture of liquor or any other intoxicating drugs,
• The activity regarding the construction of any distillery or brewery, and 
• The activity of bottling any liquor for the purpose of sale.

Regarding the activity of importing, exporting, transporting, or possessing liquor, the quantity of which exceeds 50 litres but is below one hundred litres, the punishment that has been provided is imprisonment for a term that may extend to 6 months and a fine that may extend to two thousand rupees. 

For any other activity that has been prohibited under Section 4(1), the punishment that has been provided is imprisonment for a term which tends to three months or a fine which may extend to one thousand rupees.

Section 4(1-A) provides for a special kind of punishment where death or grievous hurt is likely to be caused to the consumer because of the liquor or intoxicating drug that has been involved in the prohibitory activities that have been committed by the offender. The specific activities are stated below:

• The activity involves the importing, exporting, transporting, or processing of liquor or any intoxicating drug.
• The activity regarding importing, exporting, transporting, or processing liquor that exceeds fifty litres but is less than one hundred litres in quantity. 
• The activity involves importing, exporting, transporting, or processing liquor, the quantity of which is one hundred litres or above. 
• The activity of manufacturing liquor or any intoxicating drugs. 
• The activity of bottling any liquor to produce it for sale purposes. 

The punishment for the activities mentioned above would be in such a manner as provided below:

• If the death was due to the consumption, then the punishment would be rigorous imprisonment for life and with a fine which shall not less than five thousand rupees.
• In any case other than that, the punishment would be rigorous imprisonment for a term that may extend to ten years, with a fine that may extend to seven thousand rupees.

Presumption

There are two presumptions that are provided under Section 4(2) of the Act, 1937. They are provided below:

• That a person who is charged with an offence under Section 4(1) excluding for the activity that allows any of the acts under Section 4(1) upon the premises to the offender’s immediate possession, has committed the offence concerning liquor or intoxicating drug or any still, utensil, tool or apparatus used in the manufacture of such liquor or intoxicating drug any other material that is typically used in the production of liquor or intoxicating drug or any other material that has undergone any process that results in the production of liquor or intoxicating drug or from which any liquor or intoxicating drug has been produced and for which such person is unable to provide a satisfactory explanation. 
• Any person who is charged with the offence relating to any activity that has been listed to be prohibited under Section 4(1) on the property under the immediate possession of the offender that has committed the offence if it is established that the offence was committed on such property involving any liquor or intoxicating drug or any still, utensil, tool, or apparatus used in the production of liquor or intoxicating drug or any other material which is commonly used in the manufacture of such liquor or intoxicating drug or any other material that has undergone any process which leads to the production of liquor or any intoxicating drug from which such substance has been produced.

Punishment for being found intoxicated

Section 4-A of the Act, 1937, provides that whoever is found in a state of intoxication in a public place shall be punished with imprisonment for a term that may extend to three months or with a fine that may extend to one thousand rupees.

Further, the provision states that this punishment would also apply to a person who is otherwise not permitted to consume any liquor or any intoxicated drug according to this Act but is found in such a state of intoxication at a private place.

Punishment for rendering spirits fit for human consumption

Section 5 of the Act, 1937, provides that anyone who denatures any spirit, irrespective of whether it is made in India or not, renders or attempts to render any spirit fit for human consumption, preparation containing such spirit or someone who has in his possession such spirit or preparation containing such spirit, would face rigorous imprisonment, which may extend to a time period of three years, and a fine that may extend up to ten thousand rupees. 

Further, the provision provides that the person who is an offender here has to have the knowledge or reason to believe that such an attempt has been made.

Furthermore, the provision enunciates that as long as a spirit or any preparation containing spirit is shown by chemical analysis to contain any amount of one of the approved denaturants, it is assumed that the spirit is or has been generated from the denatured spirit.

Prohibition on advertisement

According to Section 6, anybody who prints or publishers any advertisement or any other matter that encourages the use of or the offering of liquor or intoxicating drugs other than liquor or drugs that are exempt in any newspaper, book, leaflet, booklet, or any other single or periodical publication shall be punishable with imprisonment up to six months or a fine that may extend to one thousand rupees or with both. The provision also covers the advertisement with regards to the display or distribution of any of the newspaper, book, leaflet, booklet, or likewise mediums for the punishment that has been mentioned above.

Non-applicability of the prohibition under Section 6

The proviso to Section 6 of the Act, 1937, states that the prohibition provided under Section 6 shall not be applicable to:

• Plane catalogues and price lists that may be approved by the commissioner, generally or specially. 
• Advertisements in medical journals, notices, and literature circulated exclusively to members of the medical profession. However, such advertisement, notice, or literature that relates to liquor or intoxicating drugs has to have been specially approved for medicinal value by the following:

1. A medical council established by the Tamil Nadu Medical Registration Act, 1914,
2. Any other medical council which has been formed under any law for the time being enforced in any other state or which has been recognised by the government of such state, or 
3. Any such authority with respect to Indian medicine may be notified by the State Government of Tamil Nadu. 

• The normal circulation within the state of Tamil Nadu of newspapers, periodicals, and books printed in published in accordance with the law outside the state. 
• Any advertisement that is contained in a newspaper that is printed and published in a state before the first day of January for the year 1938.

Regulation of molasses

Section 6-A of the Act, 1937, expressly provides that no person shall import, export, transport, sell, or even have in his own possession any quantity of molasses. 

However, sub-sections (2) and (3) of the same provision provide for two exceptions stated below, respectively: 

1. The state government is empowered to authorise any officer or to authorise a licence for the import, export, sale, or possession of molasses by general or special order. 
2. The state government is also empowered to authorise any officer to grant permission for the transportation of molasses.

Regulation on the transit of liquor

Section 6-B of the Act, 1937, explicitly prohibits a person from transiting in liquor.

However, there is an exception provided to it under subsection (2), which states that the collector or any officer not being lower than the rank of deputy collector that is authorised by the collector in this regard may issue permission for the transit of any liquor in the form. Further, such permission could be accompanied by some restrictions established to be subjected to the condition and supervision of the State Government of Tamil Nadu. 

The provision further states that an application for such permission of transit must be submitted within the time period that is specified by the State Government of Tamil Nadu. Also, required copies of import and export licences from the relevant state from where the liquor is being transported must be accompanied by such an application.

Section 6-B(3) provides the condition that shall be coupled with the permission to transit that would be issued under sub-section (2) of Section 6-B. They are stated below: 

1. That all routes designated in the permit shall be used for the transportation of liquor, and
2. The person transporting liquor must pay for the police escort during transit according to the scale that the prescribed authority may specify.

Punishment for conspiracy

Section 7 of the Act, 1937 covers the punishment for conspiracy. It states that whenever two or more persons agree to commit or cause to commit any offence under Section 4(1) or under Section or to evade or nullify the provisions of the Tamil Nadu Prohibition Act 1937, each such person shall be punished with imprisonment for a term that may extend up to three months or a fine that may extend up to one thousand rupees.

However, despite the fact that none of the parties performed any conduct other than what was stated in the agreement of conspiracy, they would face such penal consequences.

Punishment for vexatious search or arrest

Punishment for vexatious search or arrest has been provided under Section 8 of the Act, 1937. It states that any officer or person exercising powers under this Act shall be punishable with imprisonment up to the time period of six months or with a fine up to the amount of five hundred rupees, or with both imprisonment and fine, who:

• Enters, searches, or orders a search of any closed area without a valid basis to do so, 
• Vexatiously, aggressively, and needlessly confiscates someone else’s property under the guise of looking for or taking anything that might be subject to confiscation under this Act, 
• Harasses and needlessly stops, searches, or arrests somebody, 
• Intentionally and deceptively provides information that justifies a search, seizure, arrest, detention, or
• In any other way, he or she willfully goes beyond his or her authorised authority.

Confiscation order

According to Section 14(1), the court shall order the confiscation of any property deemed subject to seizure, whether the offender is found guilty or not of violating this Act, even in cases where the accused is found not guilty. 

Furthermore, Section 14(2) stipulates that the court shall order the seizure of everything it determines is subject to confiscation under the prosecution of an infraction against this Act. 

The proviso provides that no animal, vessel, cart, or other vehicle may be seized under sub-section (1) or (2) if the court determines that the owner and those parties have taken reasonable precautions to prevent the commission of the relevant offence after hearing from the owner of the animal, vessel, cart, or other vehicle and parties claiming ownership rights.

Section 14(3) purports that if an offence against this Act is committed but the preparator is unknown or cannot be located, or if anything that is subject to confiscation under this Act is in the possession of anyone who can be satisfactorily account for it, the collector or another district prohibition officer in charge will investigate the matter and make a determination. Also, any other officer designated by the state government in this capacity will order the confiscation.

However, no such order may be issued until fifteen days have passed after the items targeted for confiscation were seized and until the parties cleaning the rights to the items have been heard and have had a chance to represent any relevant evidence.

According to Section 14(4), despite the provisions in subsections (1) to (3), if the collector or any other prohibition officer in charge of the district or any other officer designated by the State Government of Tamil Nadu in this regard is convinced that an offence has been committed against this Act, he may order the confiscation of any animal, vessel, cart or other vehicle used in the commission of such offence without affecting the other penalties the offender may be subjected to under this Act. 

The understanding is that the owner of the person from whom the animal, vessel, cart or other vehicle is taken must disclose the following information before the issuing of an order of confiscation:

• A written notice explaining to him the reason for the intended seizure of the animal, vessel, cart, or other vehicle, 
• A opportunity to subject to the reasons for confiscation in writing within a reasonable amount of time, not more than fourteen days, depending on the notice at any moment, and 
• A reasonable opportunity to be heard on the whole matter. 

The additional provision provides that the owner of the person from whom the animal, vessel, cart, or other vehicle is taken will have the option to pay some not to exceed the market value of such animal, vessel, cart or other vehicle in lieu of having it confiscated.

Section 14(5) after the Act, 1937 provides that anybody who feels wronged or aggrieved by a confiscation order issued under the sub-section (4) of Section 14, can file an application with the Sessions Court. Such an application can be filed within one month from the day the order was received. Also, the Sessions Court shall be the one which has jurisdiction over the matter.

Summary trial

Regardless of anything stated in the Code of Criminal Procedure 1973, Section 15-A of the Act, 1937 states that the State Government of Tamil Nadu may grant authority to try summarily any or all of the offences that are punishable under this Act by a term of imprisonment that would not exceed six months, with a fine or with both, in accordance with the provisions that are contained in Section 262 to Section 265 of the Code of Criminal Procedure, 1973. 

However, no sentence other than a fine shall be imposed as a result of such a trial, on- 

1. Any first-class judicial magistrate,
2. Any second-class judicial magistrate, and
3. Any special judicial magistrate designated pursuant to Section 13 of the Code of Criminal Procedure, 1973

Chapter 3 of Tamil Nadu Prohibition Act, 1937 : exemptions and licences

Just like a right gives rise to a duty corresponding to it, a prohibition regarding something also sometimes clears the path for exemption. Chapter III of the Act, 1937, provides for certain exemptions in the bona fide light. The chapter also provides for different licences granted for the purpose of this Act.

Let us discuss them.

Power to notify exemption

According to Section 16(1), any specified liquor intoxicating drug or any other article which contains such liquor or intoxicating drug may be exempted from all or any of the provisions of this Act if the state government determines that the liquor drug or article concerned is required for a medical, scientific, industrial, or likewise purposes. The State Government of Tamil Nadu is empowered to provide such an exemption by notification and can also subject it to certain conditions it deems appropriate. 

Furthermore, the provision under Section 16(2) stipulates that anybody who violates those terms and conditions that are imposed by the state government while granting such exemption may attract the punishment of imprisonment for a time period that may extend up to three months or a fine that may go up to one thousand rupees.

Exemption of bona fide travellers

Section 17 provides for the exemption of bona fide travellers and legitimate consignments. It provides that the provisions of the Act, 1937, will not be regarded as applicable until and unless the State Government of Tamil Nadu notifies it differently to the following: 

• To liquor that law-abiding travellers hold for their personal consumption while passing through any locality where this Act has an effect, or
• To legally transport liquor consignments into any local area or legally transported drugs that cause intoxication by means of or into any local area.

Exemption of members of the armed forces

Section 17-A provides for the exemption of members of the armed forces. The provisions stipulate that the following may be exempt from any or all of the provisions of the Act, 1937, which shall be declared by notification and under any condition that is deemed fit by the State Government of Tamil Nadu: 

• The members of the Union Armed Forces,
• Any other armed forces raised or maintained by the Union, and 
• Any member of the medical or other staff related to any of the armed forces mentioned above.

The provision further states that any individual who violates the terms and conditions under which such exemption has been granted by the State Government of Tamil Nadu will face penal consequences. The punishment could be imprisonment for up to three months or a fine that may go up to one thousand rupees.

Licence for the manufacture of potable liquor

According to Section 17-B, the State Government of Tamil Nadu or the collector acting under the direction of such a state government may grant a licence to manufacture liquor for human consumption to any individual or organisation, irrespective of whether it is managed by the government, and can subject them to certain conditions as they deem fit.

Such manufacture must be fit for human consumption for 

• The purpose of selling such liquid to individuals and establishments that hold licences or permits in this regard.
• For any other reason that is allowed by this Act, or 
• For transportation, the import or export of liquor that is intended for human consumption

Licence for import-export

Section 17-E provides that a licence for the export, import, transport, or possession of any liquor or article which contains liquor may be granted by the State Government of Tamil Nadu or a collector acting under the authority of the state government. It can be granted to any individual or to any institution, whether or not it is managed by the government, provided that the liquor or the article is required for legitimate purposes by such individual or institution. 

Licences for bona fide medicinal or other purposes

Section 18 provides that the licence for the manufacture, export, import, transport, sale, and possession of liquor and intoxicating drugs may be generated by the State Government of Tamil Nadu or the collector acting under its authority to any individual or institution whether it is governed by the government or not. It is further stated that the licence may be granted if the liquor intoxicating drug or the article involving them is needed by the individual or institution for a legitimate medical, scientific, industrial, or likewise purpose.

Exemption from payment of excise duty, countervailing duty, or fee

Section 18-H stipulates that, by notice, the State Government of Tamil Nadu is empowered to impose any limitation or condition that it may deem fit through such notification.

Provide an exemption rate reduction or other change with regards to the excise duty, countervailing duty, or any other fee that is due by or under this Act to any individual or group of individuals, and

To revoke or alter the exemption, reduce it, or make other changes to it.

Licence for tapping neera or padani

According to Section 19, the Commissioner of Prohibition and Excise, the functional registrar of the Tamil Nadu Palm Products Development Board, any registrar of the Tamil Nadu Palm Products Development Board, or any other officer designated by the government on this behalf, may issue:

• The licence for the tapping of neera or padani to be consumed unfermented is used to make products like sugar, biscuits, honey, jaggery, and other items that the State Government of Tamil Nadu may notify.
• Permissions for the sale, transportation, or possession of neera or padani.

Permits and licences

Section 20 addresses licences and permits. It specifies that the State Government of Tamil Nadu or any representative authorised by them may issue:

• Permission enabling any individual to use and process for personal use any liquor other than those listed by the state government under Section 4 or any other intoxicating drugs,
• Licences to any establishment to carry liquor and distribute it to members who have the permissions stated above,
• Permits enabling the owner of a restaurant car connected to a railroad to keep liquor and serve it to legitimate passengers, and 
• Licences to anybody to possess liquor and distribute it to individuals or organisations that are in possession of permits or licences issued under this Act or have been granted exemption from several of the restrictions given under Section 4(1) concerning the purchase, possession, and consumption of liquor.

Matters to be taken into consideration by the licensing authority

Section 20-A envisages matters that are to be taken into consideration by the licensing authority. It states that under this Act, the authority competent to grant a licence or permit, as the case may be, shall consider certain factors when evaluating an application for the grant of a licence or permit, subject to the provisions of Section 20-B, which outline the preferences to be given to the co-operative societies in granting licences over the other applicants. The following are the factors that are to be taken into account: 

• The appropriateness of the applicant for the issuance of a licence or permit as applicable,
• Such other matters as may be prescribed.
• According to the explanation attached to the provision, it is accordingly declared that the authority competent to provide such a licence or permit should take into consideration certain elements when determining whether the applicant is suitable for the issuance of a licence or permit, as the case may be. The elements are given as follows:

1. The solvency of the applicant,
2. If the applicant has violated any of the terms and conditions of the licence or permit granted under the provisions of this act or any other rules made there under, 
3. Whether the applicant has violated any of the provisions of this act or of any rules, notifications, or orders made to effect this Act, 
4. Whether the applicant has been found guilty of any crime covered by this Act or any other offence recognised as having no bail requirements, any offence that is covered under the Dangerous Drug Act, 1930, any offence covered by the Trade and Merchandise Marks Act, 1958, or any offence covered under Sections 482 to 489 of the Indian Penal Code, 1860,
5. If the applicant is engaged in any other activity that would hinder him from giving the reason for the request for a licence a permit under this Act enough consideration, 
6. If the applicant has a payment history with the State Government of Tamil Nadu of any taxes or other payments owed or for any other amount payable under this act or its provisions, 
7. Any other information pertinent to the reason for which a licence or permit under this act is being requested.

Licence for possession and use of denatured spirit in the manufacture of specified commodities, etc.

According to Section 20-C, no licence under this Act may be given in spite of anything else in the Act, for

• The possession and use of denatured spirit in the production of varnish, picture varnish, insulating varnish, paint remover, gasket shellac, printing ink, or any other goods as the State Government of Tamil Nadu may specify from time to time. However, there is the exception of units of the state government department, government companies as defined under the Companies Act, 1956, or any corporation controlled or owned by the state or central government, as well as manufacturers of spirit-based products who are registered with the director of industries and commerce or the director general of technical development, Government of India, and 
• The ownership and sale of denatured spirit or varnish, whether at retail or wholesale, with the exception of departments within the state government, government companies as defined under the Companies Act, corporations controlled or owned by the state or central government, or cooperative societies that are registered or are deemed to be registered in accordance with the law in force for the time being.

Forms and conditions of licences and permits

The form and conditions of licences and permits are outlined in Section 21. It specifies that each licence of permission issued in accordance with Section 6-A shall:

• Be granted subject to restrictions and limitations upon payment of such fees, if any, for such a time period and on such terms and conditions, including:

• The requirement to deposit the specified amount as collateral for adhering to the terms and conditions of any such licence or permit, 
• The requirement that the entire amount thus placed be forfeited in the event that any terms or conditions of the licence or permit are violated, 
• The need for replenishing the amount forfeited within the time period that may be specified, and
• Be in such form and shall include such detail that the State Government of Tamil Nadu may generally or specifically direct.

Power to cancel or suspend licences and permits

According to Section 23(1) of the Act, 1937, any licence of permission may be cancelled or suspended by the state government, the controller authorised by it on this behalf, or by any other specified body. The reasons for such cancellations are listed below:

• If any sum due from the holder is not properly paid,
• If any terms or conditions of such licence or permission have been broken by the holder, his employees, or someone working on his behalf with his express or implied consent,
• If the holder is found guilty of any offence that is prohibited under this Act or any other offence for which a bail bond is not required, 
• If the holder of such licence or permission has used fraudulent or inaccurate information in order to acquire or renew such licence or permission, 
• If the terms and conditions of such licence or permission allow for its revocation or suspension at any given time, or
• If the intended use behind such a licence or permission is no longer in existence. 

Section 23(2) further provides that the State Government of Tamil Nadu may cancel or suspend any licence of permission that has been granted by the collector or any other designated body in light of the reasons that are mentioned above. 

Section 23(3) stipulates that the holder of the licence or permission shall be afforded a reasonable opportunity to be heard so that he can raise his objections before the licence or permission is revoked or suspended. This opportunity should not exceed 14 days, and any representation made by the holder in this regard shall be duly taken into account before the final orders are passed. However, in the event that a prima facie case is established, the State Government of Tamil Nadu, the collector appointed on this behalf, or the prescribed authority as applicable may nevertheless suspend any such licence of permission at any time and for the reason that must be expressed in writing. Further, giving the opportunity of being heard under such circumstances won’t be necessary.

Penalty for breach of the conditions of licences and permits.

In addition to having the licence of permission granted to the holder revolved or suspended, the holder of such licence of permission or any other person acting on his behalf with his express or implied consent shall be punishable under Section 24 with up to three years of imprisonment or a fine up to the amount of three thousand rupees for any violation of any of the terms and conditions of such granted licence or permission.

Punishment for adulteration by a licenced vendor or manufacturer

Punishment regarding adulteration by a licensed producer or vendor is outlined in Section 24-A. It specifies that anybody who works for Tamil Nadu State Marketing Corporation Limited or who holds a licence or authorisation under this act for the production or sale of liquor:

• Mixes or authorisation blends with the liquor he sells or manufactures- any harmful substances or foreign ingredients that might increase their real or perceived intoxication quality or intensity, provided that doing so does not constitute an adulteration offence under Section 272 of the Indian penal code, or any illicit or illegal liquor.
• Either keeps, sells, or exposes for sale –

• As foreign liquor, alcohol that he is aware of or reasonably suspects to be something other than foreign liquor, or
• As foreign spirits created in India, liquor that he knows or has reasonable suspicion that is anything other than the liquor made in India, or
• As illegal or illicit liquor, liquor that he either knows to be illegal or has a good cause to think that it is.

• Dilute or allow to be diluted any liquor that he sells or manufactures using any kind of substance.
• Create the cork for any bottle, case, package, or other receptacle that contains liquor other than that of another country, or use any of these articles with a mark on them or on the cork to lead one to believe that day contains liquor other than that of another country, provided that this conduct or practice does not violate Section 482 of the Indian penal code, which provides a prohibition against using a false trademark to deceive or harm others. 
• If someone sells stores or exposes for sale any liquor other than the foreign liquor in a bottle, case, package, or other receptacle with the mark on it or on the cork, they are intending to give the impression that the bottle, case, package, or other receptacle contains foreign liquor, even though this does not constitute the selling of goods marked with a counterfeit trademark under Section 486 of the Indian penal code.

The punishment that they would attract would be imprisonment for up to three years and a fine that would lead to up to three thousand rupees.

Offences by companies

Section 24-B of the Act, 1937,  talks about offences by companies. 

Section 24-B(1) provides that if a company commits an offence under this Act, every person who was in charge of the business of the company at the time of the offence and was accountable to it for its conduct will be considered guilty of the offence and will face the legal actions and punishments. 

The proviso to the provision states that if any such person who is elected to have committed such an offence is able to show that the offence was committed without their knowledge or that they took all reasonable precautions and due diligence to prevent the offence from being committed, then the provision cannot hold such an individual accountable for any penal consequences. 

Furthermore, Section 24-B(2) states that regardless of what is stated in Section 24-B(1), if any company commits an offence under this Act and it is established that the offence was committed with the knowledge or assistance of, or as a result of any neglect on the part of, a director, manager, secretary, or any other officer of that company, then such director, manager, secretary or any other officer of that company will be presumed to have committed the offence and will be subjected to legal actions and penal consequences accordingly.

Penalty for furnishing false or incorrect information

Section 24-C of the Act, 1937, provides that in addition to having the licence or permit granted in relation to the liquor that is revoked or suspended, the holder of the licence or permit in relation to liquor under this Act who furnishes any information in connection with the obtaining or renewal of the licence or permit under this Act that is false or which he knows or has reason to believe to be incorrect will attract penal consequences. Such punishment could be imprisonment for up to a period of three years and a fine that may extend up to two thousand rupees.

Chapter 4 of Tamil Nadu Prohibition Act, 1937 : establishment and control 

For every duty, there has to be accountability that follows it. And to hold someone accountable, there has to be authority. In order to protect the intent of the Act, 1937, Chapter IV provides for its establishment and control.

Let us discuss it.

Appointment of officers and withdrawal of powers

According to Section 25, the State Government of Tamil Nadu may, by notification, from time to time do the following things: 

• Designate a person to oversee the administration of the provisions of this Act in all local areas where it is in effect and to exercise all the authority of a collector under this Act.
• Designate any individual apart from the land revenue collector to carry out all or any of the responsibilities and powers that are assigned to a collector under this Act within a district, either in conjunction with or independently of the land revenue collector, subject to any supervision that the State Government of Tamil Nadu may specify from time to time.
• Appropriate any or all of the authority granted to the commissioner of the land revenue collector by this Act. 
• Designate honorary or compensated officials with the titles, responsibilities, and authority that the state government deems appropriate.
• Mandate that any current government employee or other individual may assume and carry out all or any of the authority and responsibilities granted to such paid or honorary officers, and
• Assign the authority granted to them by this Act to any prohibition officer in the name of delegating such authority.

Delegation of powers of state government

According to Section 25-A, the commissioner or any other subordinate official may be granted authority by the state government to execute any of the powers granted to them by this Act, with the exception of the authority to establish regulations and to issue notices. 

Furthermore, any authority granted may only be delegated under the conditions and limitations that the notification specifies, which may also be subjected to revision and modification by the State Government of Tamil Nadu.

Prohibition committees

Section 26 of the Act, 1937 provides for the provisions for prohibition committees.

The provision states that in light of achieving the goals of this Act, the State Government of Tamil Nadu may establish a prohibition committee for the entire State of Tamil Nadu, and the district collector may do the same for any reason within the district that the state government specifies in this regard by general or specific order. 

Further, the provision provides that each member of the prohibition committee is required to monitor how the Act is being applied and to report to the State Government of Tamil Nadu if they are part of the state government-constituted prohibition committee and the collector if they are part of the collector constitute prohibition committee on any topic related to the Act at regular intervals and whenever they deem appropriate.

Further, every member of the prohibition committee has the right to provide information at any police station about any offence against this Act that has been committed or is suspected of being committed in the jurisdiction of such committee. The officer in charge of that station will then act upon such information and conduct an investigation into the matter in accordance with the procedures provided in the Code of Criminal Procedure, 1973.

Power of State Government to authorise officers to admit persons arrested to bail

Section 27 empowers the State Government of Tamil Nadu to authorise any or all the officers, classes of officers, or persons employed to make arrests of offenders and seizure of contraband liquor and articles without warrant throughout the state or any local area to release an individual arrested in that regard on bond so they can appear before a police officer, prohibition officer, or magistrate with jurisdiction to inquire about the offence for which they are arrested. 

Such authorisation shall be made by virtue of notification by the state government. Also, the state government may cancel or modify such notification.

Chapter 5 of Tamil Nadu Prohibition Act, 1937 : power, duties, and procedure of officers

Chapter V of the Act, 1937, covers the powers, duties, and procedures that are given and required to be followed by the officers responsible under this Act.

Let us discuss it.

Issue of search warrants

Section 28 outlines regulations for granting search warrants. It purports that any collector, prohibition officer, or majestic who has reasons to believe that an offence under Section 4(1) that has been discussed above has been committed may issue a warrant for the search of any liquor, intoxicating drug material, still, utensil, implement, or apparatus related to the alleged offence. This is based on the information obtained and after making the necessary inquiries. Any person responsible for carrying out the execution of such a warrant may obtain and search these investigated areas, and if he deems it appropriate, he may make an arrest of the person he believes to be guilty of the alleged offence under this act.

Furthermore, it states that the person making the arrest must provide bail to any individual detained under the section if enough money is paid so that the detainee can appear before a magistrate, police officer, or prohibition officer, as per the requirement.

In addition, it is further stated that prior to issuing the warrant, the collector, prohibition officer, or magistrate must examine the facts provided under oath. Such review for examination must be summarised in writing and should be signed by the informant as well as by the collector, prohibition officer, or magistrate.

Powers of entry and search without warrant

The provisions pertaining to entrance and search rights without a warrant are outlined in Section 29. According to it, if a collector, a prohibition officer not below the rank that the state government may designate, a police officer, or any other paid or honorary officer authorised on this behalf by the state government has reason to believe that an offence under Section 4(1) has been committed, they shall act upon such anticipation. 

However, if they are convinced that the delay caused by obtaining the search warrant will prevent the execution, then they can act based on such suspicion. In the meantime, he may enter and search any place at any time of the day or night, recording his justification and the basis of his belief. He may also seize anything that is found that he believes to be a subject attracting confiscation under this Act, and he may conduct a detailed search, and if he deems it appropriate, he can also arrest any person found there who is believed to be guilty of any offence committed under this Act. 

It is further provided that if adequate collateral or enough money is offered for the appearance of the person arrested before a magistrate, police officer or prohibition officer, as per the demand of the case, the official will grant bail to such individual fulfilling the requirement of this provision.

Power of entry and inspection

The power and authority of entry and inspection are emphasised under Section 30. It states that any place where it is reasonably suspected that a toddy is being drawn or that the production of liquor or any other intoxicating drug is being carried out or where any police officer or other paid or honorary officer authorised by the State Government of Tamil Nadu in this behalf or any other prohibition officer not lower the rank that the state government has determined may enter and inspect at any time of day or night, in respect of: 

• That liquor or substance used to get intoxicated is stored or preserved for sale, or
• An offence under Section 5 has been committed or is being committed.

They may inspect, test, weigh, measure, or analyse any object, utensil, device, liquor, or intoxicating drug discovered in such a location.

The arrest of offenders and seizure of contraband liquor and articles without a warrant

The rules pertaining to the arrest of offenders and the unwarranted seizure of elicit articles and liquor are outlined in Section 32 of the Act. It states that anyone found committing an offence that is punishable under Section 4(1), Section 5, Section 7, or Section 24, or any other offence that is punishable with rigorous imprisonment for a time period that may extend up to 3 years or more

• May be arrested without a warrant by any prohibition officer, officer of the police or land revenue departments, or any other authority authorised on this behalf.
• Such officers may confiscate and hold any drug, liquor, or any other article involving them that has caused a reason to believe such confiscation to be carried out under this Act.
• Such an officer may conduct a search of any individual person, vehicle, vessel, package, or covering that he has a reasonable suspicion may contain liquor, intoxicating drugs, or any other items containing them that are to be concealed.

Furthermore, it states that if the officer making such an arrest under the section is not authorised to admit to bail, the person arrested will be sent right away to an officer who is authorised on this behalf. If this officer is known to be located within 5 miles of the location of arrest, it will be their responsibility to admit the person to bail if enough collateral is offered for their appearance before a police officer, prohibition officer, or magistrate with jurisdiction to inquire into the matter.

The provision further states that in the event that the officer a person seizes any toddy, wash, or sonti soru pursuant to this section, they may immediately destroy or cause to be destroyed such seized toddy, wash, or sonti soru to the police, prohibition officer, or magistrate within whose jurisdiction the investigation lies.

Furthermore, the provision provides that in the event that any officer person seizes unlawful or illicit arrack in accordance with this section, such officer person may in the presence of a prohibition officer or any other police officer ranking not below the rank of an inspector, 

• Collect two samples of such unlawful or illicit arrack, or as many samples as necessary. There would be directions given to them as to how they have to do such collection, and
• Destroy such illicit arrack or cause it to be destroyed, and send the parts or other containers containing them, along with the samples that were taken and a certificate from the officer in whose presence the samples were extracted and the arrack that was destroyed, to the magistrate with the jurisdiction to investigate the matter. In addition to it, detailing the total amount in respect of the seized illicit arrack, the total amount taken as samples, and the total amount destroyed would also be sent to such a magistrate.

After receiving the samples, the magistrate is required to keep one in his court and transmit the other to the officer designated for chemical analysis. 

There is an explanation attached to this provision and it states that: 

• ‘Sonti sonu’ is a liquid made from rice or starch that has either finished fermenting into wine or liquor or is in the process of doing so, and 
• ‘Wash’ means a combination of water and saccharine ingredients that have either finished or are still undergoing vinous or alcoholic fermentation.

Arrest of a person refusing to give the name or giving a false name

A person who refuses to reveal names or uses a fake identity may be arrested under Section 33 of this Act. It specifies that anyone who may be reasonably suspected of violating the provisions of this Act and who refuses to give their names and residence upon request from a prohibition officer, an officer of the police or land revenue department, or any other officer that is authorised in this capacity by the State Government of Tamil Nadu may be arrested by that officer in order to obtain their name and residence.

Persons arrested how to be dealt with

Section 38 specifies how those who are arrested are to be handled or dealt with. It states that if someone is arrested under Sections 28, 29, 32 or 33, the person making the arrest must send the arrested person right away to the closest police station or do a prohibition officer along with a report detailing the circumstances leading up to such an arrest, unless bail has been granted under Sections 28, 29 or 32. 

It also outlines the protocol for police station officers and states that when a person is being brought to a police station as mentioned above, the officer in charge of that station will either grant him bail so that he can appear when called either before the prohibition officer or himself or before any police officer within the jurisdiction of which the offence for which he is accused is suspected to have been committed or, should bail be denied, will return him over to that officer. 

It further outlines the process for police or prohibition officers who are authorised to make inquiries. It states that when a person is taken into custody by a prohibition or police officer or when that officer has made the arrest himself, that officer will conduct any investigation he deems necessary and will then either:

• release the person from custody, or  
• forward him to another magistrate with the jurisdiction to investigate the matter, or 
• admit the person to bail.

The proviso further stipulates that if an inquiry is not initiated and concluded on the day the person is arrested, brought before, or appears before the officer, the officer must, upon the presentation of adequate bail for the appearance of the arrested person, release them on bail. The individual is then required to appear on a later date before the same officer or any other official with the authority to conduct the inquiry into the case.

Power of the Police or Prohibition Officer to summon witnesses

The authority to summon the witness is granted to the prohibition officer or to the power of the police under Section 42 of the Act. It states that any police officer or prohibition officer who is conducting an inquiry in accordance with Section 38 is empowered to summon any person to appear before him in order to provide testimony on the matter or to present any relevant document that may be in his control or possession. However, no such officer may allow someone to appear before him in such a way if the required travel distance to comply with such someone exceeds: 

• 10 miles by road,
• 50 miles by rail, or
• Any other restriction that the State Government of Tamil Nadu may have provided.

Terms of summons

The terms and conditions of the summons that are carried out under Section 42 are listed under Section 43. The provision specifies that every summons issued must specify whether the person receiving it is expected to appear before the designated officer at a certain time and place and provide testimony, present documents, or both.

Examination of witnesses

Section 44 of the Act, 1937 states that the person who has been summoned is expected to show up as scheduled and respond to any questions the officer may have about the investigation or examination. 

It further provides that such an answer given by the person so summoned must be reduced to writing and shall be signed by the relevant officer in charge.

Power of the Police or prohibition officer to summon suspected persons

Section 46 grants the police or prohibition officer authority over someone they suspect. The provision says that any police or prohibition officer may be any individual with whom he has reasonable suspicion that he has violated the provisions of this Act. Such officers are required to document the cause of the action of such individuals in writing, which has led them to have a reasonable cause for it. When that individual shows up before that officer, the process prescribed by Section 38-45 will take effect. Prior to some meaning of the suspected individual, the officer may also use the authority granted by Section 42-45 if he deems it essential for the investigation of the case.

Power to release certain offenders of prohibition on good conduct

Section 52-B gives the authority to release certain prohibition offenders with good behaviour. Regardless of the provisions of the Probation of Offenders Act of 1958 or the Code of Criminal Procedure of 1973, if any individual is found guilty of:

• Any offence covered by the punishment provided under Section 6 
• The commission attempts to commit or assist in the commission of any of the actions constituting any of such punishable offences when such commission attempt or assistance is subject to the punishment of Section 12.
• The court that finds him guilty does not have any evidence of his prior conviction for any offence under this Act against him.

In the cases mentioned above, rather than immediately sentencing him to any punishment, the court may release the accused upon entering into a bond, requiring at least one surety to appear and answer for their offences whenever the court finds it necessary for a maximum period of 5 years and to refrain from committing any offences under this Act during that time period.

As long as the court is convinced that the offender and his surety have a fixed place to abode or regular occupation in the location for which the court acts or is in which the offender is likely to live during the period designated for the observance of the condition, the Court may not order the release of an offender under this provision.

If the offender is younger than the age of twenty-four, the court may appoint a probation officer named in the order under the Probation of Offenders Act of 1958 to supervise the offender during the period specified in such order. The order may also impose additional conditions to ensure the offender receives the supervision specified in the order. However, the period specified in the order cannot exceed the date the offender is expected to turn 25 years old, as determined by the court.

When a quote issues a supervision order, it must first require the offender to post a bond with at least one surety guarantee that he will abide by the terms of the order, as well as any additional requirements or conditions pertaining to housing, abstaining from liquor, and any other matter that the court deems appropriate to impose in order to prevent the offender from committing any offences under this Act.

When a court issues a supervision order, it is required to provide a written notice describing the terms of the bond in a plain language to both the surety and the offender.

It is further provided that any appellate court or high court may issue an order under this provision in the course of using its revisionary powers.

Chapter 6 of Tamil Nadu Prohibition Act, 1937 : rules and notifications 

The whole Tamil Nadu Prohibition Act of 1937 revolves around the notifications that are to be made by the State Government of Tamil Nadu in order to promote the smooth functioning of this Act, and Chapter VI provides such power to make such rules and defines rules regarding such publication.

Let us discuss it.

Power to make rules

Section 54(1) empowers the State Government of Tamil Nadu to make rules for the purpose of giving effect to the provisions of the Act, 1937.

Section 54(2) provides a list regarding which the state government may establish regulations without affecting the generality of the provision stated above. The list is as follows:

• For the issuance of licences and permits as well as for the upholding of the terms.
• For imposing a penalty for loss or shortage of spirits beyond the specified limit of not more than sixteen rupees for every proof litre.
• For specifying the authority that needs to be appointed and the duties or responsibilities that the honorary prohibition officers must fulfil in order to achieve the goals of the Act.
• To define how the obligation regarding the excise duty or countervailing duty on liquors and intoxicated drugs may be applied.
• For establishing the local authority of police and prohibition officers for inquiry and use of their investigation and preventive capabilities.
• For enabling any official or any other authority assigned on that behalf to carry out any function or exercise any authority under this Act.
• For defining the members of prohibition committees, their responsibilities, and the times at which committee members are required to provide their reports.
• For controlling the transfer of any authority granted to the commissioner, collector, or other district authorities under this Act.
• For controlling the growth of the hemp plant, the extraction of plant parts that can be used to make intoxicating substances, and the production of such substances from those parts.
• To describe the process of creating denatured spirits.
• For giving instructions on when and how to present appeals as well as regarding the process for handling them and stating in which cases of classes of cases and to which authorities such appeals from orders lie, whether original or appellate, past under this Act or any rules. Also, to determine by what authorities such orders may be revised.
• For the payment of batta to witnesses, compensation for lost time to those freed under Section 38(3), which has been discussed above, due to unlawful arrest, and to persons accused of violating this Act before a magistrate but found not guilty. 
• For controlling the authority of police and prohibition officers to call witnesses from a distance under Section 42, discussed above.
• For the removal of the items that are seized and the revenues from them.
• For the control of the use of any liquor or intoxicating drug exempt from all or some of the provisions of this Act and for the prohibition of the use of medical or toilet preparations for any purpose other than the medicinal or toilet preparation.
• For the appropriate collection of taxes on all types of drugs and liquor.
• For the purpose of suspending or removing the application of any regulation created under this Act.
• For all the matters that the Act, 1937 specifically requires to be prescribed.

Section 54(3) further provides that all rules under this Act must be placed on the table of the legislative assembly as soon as possible after they are made. The assembly may then amend or repeal the rules within the time period of 14 days once the sitting of the House commences, either in one session or multiple sessions.

Publication of rules and notifications

Section 55 provides that all the rules and regulations created and the notices that are sent out in accordance with this Act must be published in the official gazette in order to be effective.

Chapter 7 of Tamil Nadu Prohibition Act, 1937 : legal proceedings 

Chapter VII of the Act, 1937 provides immunity to the government and defines the jurisdictional limitation that the civil court has over this Act.

Let us discuss it.

Actions against the Government

By virtue of Section 56, it is stipulated that no action for damages may be brought in a civil court against the government, police, or any other official for any lawful conduct that is carried out or directed to be carried out in accordance with this Act.

Bar of the jurisdiction of the Civil Court

Section 56-B bars the Civil Court from having any jurisdiction with respect to any action taken or to be taken by the Commissioner Officer,  Tamil Nadu State Marketing Corporation Limited, or any other authority empowered with any power under this Act. Further, the provision states that no civil court shall grant injunction over any matter that the commissioner or other officer of the corporation or any other authority empowered by or under this Act has to determine.

Courts to take judicial notice of appointments

It is provided by Section 57 that every court must take judicial notice of all notifications and orders made under this Act that provide authority, impose an obligation, and make appointments.

Tamil Nadu Liquor (Retail Vending) Rules, 1989

The Tamil Nadu Liquor (Retail Vending) Rules of 1989 provide a set of rules that govern the retail vending of liquor in the state of Tamil Nadu. These rules provide provisions regarding the procedures and requirements for obtaining and renewing the licence for retail liquor shops. They also establish the guidelines for the selection of the applicants and operations of these shops. This further outlines the procedure for the sale of Indian-made foreign liquor in such retail shops.

The rule provides for the application process pertaining to the licence. It provides the eligibility criteria, the maximum number of shops that can be licensed by one applicant. In the selection process, circumstances are such that the application exceeds the number of shops available for the same. 

It further provides for the renewal of the licence for the retailing and vending of Indian-made foreign liquor. These rules empower the State Government of Tamil Nadu to change or discontinue such a process of renewal in order to safeguard the public interest. 

There are certain obligations that are imposed through these rules on licences, such as lifting the minimum take fixed for the shops by the licensing authority. Failure to meet these obligations would attract penalties or the cancellation of the licence. 

The rules also provide that when a tenant comes into the picture in order to sell such liquor, he or she does not have a fundamental right to carry on any business on the premises that belongs to someone else. It states that a tenant is required to obtain permission and no objection certificate from the owner of the premises in order to carry out such business of selling India-made foreign liquor. 

The rules also envisage that the principle of promissory estoppel cannot be used to compel the government or a public authority to carry out a representation which is contrary to the law or is beyond the authority of such an officer. 

The State Government of Tamil Nadu can, from time to time, whenever the requirement is felt or is needed in the interest of the general public, change the policy of granting a licence or any other rule by issuing government orders in the official gazette.

These were replaced by the Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003.

Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003

The Tamil Nadu Liquor Retail Vending (In Shops and Bar) Rules, 2003, now govern the retail sale of liquor in shops and bars in the state of Tamil Nadu. Further, it also governs the location and tendering process pertaining to the liquor retail vending shops in the state of Tamil Nadu. 

Rule 2(d) defines a ‘bar’ as a place that is located within the shop or adjoining the shop and is used for the consumption of the liquor that is sold. 

The rules further provide for the regulations regarding the licence that is required to be granted for the retail vending of liquor in the shop. It also specifies that an intending bidder submitting a tender schedule must quote the price for running a bar that is attached to an Indian-made foreign liquor shop. 

It requires the tender inviting authority to obtain a copy of the first page of the blank passbook of the bidder, which would contain the photo and address attested by the bank branch manager or notary public.

Key provisions of the aforesaid rules are:

Rule 3

Rule 3 states that the corporation shall make an application for the grant of a licence to the Commissioner of Prohibition and Excise regarding the retail vending of liquor in shops and bars for the entire state of Tamil Nadu. It further states that a treasury receipt as proof of the payment of an annual privilege fee of one crore rupees and a licence fee of one thousand rupees for the grant of licence shall be accompanied with such an application.

Rule 4

Rule 4 states that the licence shall be issued in the name of such cooperation by the Commissioner of Prohibition and Excise in Form I for the retail vending of liquor in shops and bars in the entire state. The authorisation to the corporation for the retail vending of Indian-made foreign substances is to be issued in Form II. 

Rule 5

Rule 5 further provides for the issue of a duplicate licence in the event of loss, mutilation, or damage to the licence during its validity period. However, a fee payment of one hundred rupees is payable for the same. 

Rule 8

Rule 8 provides that no shop can be established in:

• The municipal corporations and municipalities within a distance of fifty metres, and 
• From any place of worship or educational institution within a distance of one hundred metres. 

Also, the location of the shop has to be approved by the collector before the commencement of business there. 

Rule 10

The bar should be located either within the store or close to it, according to Rule 10. 

Rule 11

Rule 11 provides that the business in the shops and bars shall only be within the working hours that are specified by the State Government of Tamil Nadu by order. 

Rule 11-A

Rule 11-A bars the sale of liquor to persons who have not completed the age of twenty-one years.

Rule 17

Rule 17 provides that there shall be an inspection of the shops in respect of checking the accounts, doing physical verification of the stocks, and taking samples of liquor for chemical tests or analysis. The authorisation to enter a shop and inspect is provided to; 

• Officer of the excise department not below the rank of excise inspector, 
• Officer of the revenue department not below the rank of Tehsildar authorised by the collector.

In the event of a violation found upon such inspection, it would attract disciplinary action against the persons responsible for it.

Cases Laws

Janshi and Co. v. State of Tamil Nadu (1982)

Facts

In this case, the petitioners were dealers in Indian-made foreign liquor. They were holders of licences for composite wholesale and retail dealing. The wholesaler and retail licence for dealing in such liquor got delinked and separate licences were issued to wholesale dealers and retail dealers. Subsequently, the licence for wholesale dealers for the entire city of Madras was issued to one of the respondents and not to the petition. 

The petitioners challenged the constitutionality of certain sections of the Act, 1937. 

Issues raised

The issue was that the following provisions were challenged to be against the right to do any business or practise any profession under Article 19 of the Constitution of India:

• Section 17-C provides for exclusive privileges for manufacturers. 
• Section 17-D regarding the payment of some inconsideration of the grant of any exclusive or other privilege of a licence for manufacture or sale. 
• Section 20-B provides preferences to go operative society over other applicants in granting a licence, and 
• Section 23-A, which provides for the licence for possession and sale of bottled liquor, to cease.

Judgement

The Honourable Supreme Court held that the petitioners were entitled to submit their applications for the grand licence for wholesale dealers in Indian-made foreign spirits, and their application would be considered on merit according to the law.

S.Jagannathan v. The Managing Director (2021)

Facts

In this case, a challenge to the practice of running bars in the state of Tamil Nadu under the Act, 1937 was made. The petitioner argued that allowing bars to operate in the state of Tamil Nadu is contrary to the provisions of the Act which only permit the consumption of alcohol in private spaces or in the comfort of one’s home. The petitioner further claims that the practice of running bars is also not in line with Article 47 of the Constitution of India, which promotes the prohibition of intoxicating liquors. 

Issues raised

The main issue in this case was whether the practice of running bars in the entire state of Tamil Nadu under the Act, 1937 holds validity and whether it is constitutional in nature.

Judgement

The Madras High Court held that the respondents have the power to engage in wholesale and retail sales of liquor, but they do not possess the power to allow the consumption of liquor in public or in bars. It further stated that the consumption of alcohol within the Act, 1937 only permits such consumption in private spaces or homes of the person consuming. The court emphasised that if the Tamil Nadu State Marketing Corporation Limited, which is the respondent in this case, continues to encourage the consumption of liquor in bars, then this would attract an amendment to the substantive law under the Act.

Conclusion 

Mohandas Karamchand Gandhi was not only a fearless politician but was also a tireless social reformer. He strongly opposed addiction and time and again inscribed his policies regarding the prohibition of such substances available for addiction into the manifesto for the elections. 

Although his ideologies race back in time, the essence of it is alive today and is racing at a developing rate. One such safeguard in this light is the state legislation of Tamil Nadu, which we have discussed in detail above. The legislation not only covers the prohibition of liquor or intoxicating drugs but has also expanded its scope to include articles involving them. It also provides for authorities in this regard and other provisions regarding the rules and regulations for it that have been discussed in detail.

Frequently Asked Questions (FAQs)

What is meant by the term ‘socialist’?

By socialist, it means social and economic equality in its purest form. In order to achieve social equality, discrimination must be discouraged on any possible basis, such as caste, creed, race, gender, religion, language, etc. It also states that each and every citizen should be entitled to the same status and opportunity. The other face of it is economic equality, which is an effort to guarantee that the government makes every effort to ensure that resources and wealth are distributed equally in such a manner that each and every member of our nation has access to a respectable standard of living.

What does Article 47 of the Constitution of India state?

Article 47 of the Constitution of India states that it is the duty of the state to raise the level of nutrition as well as the standard of living, along with improving public health. It should be considered any state’s primary duty in such a manner that the state shall bring about the prohibition on the consumption except for medicinal purposes of intoxicating drinks and drugs which are injurious to health otherwise.

What do custom frontier and custom station mean under the Act, 1937?

The term custom frontiers of India has been defined under Section 7(i) of the Act, 1937 to mean the limit of the area of a custom in which imported goods or goods for export are ordinarily kept before clearance by customs authorities. 

The term ‘custom station’ defined under Section 7(ii) of the same Act means any custom ports, custom airports, or land customs stations.

Are the offences under the Act cognizable or non-cognizable?

Section 15 of the Act, 1937, explicitly states that all the offences under the Act shall be cognizable. It further provides that the provision of the Code of Criminal Procedure 1973, which is a central legislation, shall be applicable with respect to cognizable offences.

What is a delegation of power?

Through delegation, decision-making power is transferred from one organisational level to another, enabling a subordinate to take action. If it is done appropriately, delegation is not the same as surrender. It does not mean the delegation of authority. An authority, if empowered, can delegate some or all of its power to another.

What are excise duty and countervailing duty?

Excise duty is one type of tax that is divided into items for the manufacture, licence and sale. It is an indirect tax that manufacturers of products pay to the government of India. It is applicable to items that are made within the nation. 

Another type of duty is known as ‘countervailing duty’ and it is levied by the government to safeguard domestic producers by compensating for the detrimental effects of import subsidies. Therefore, a counselling duty is an import tax imposed on imported goods by the importing nation.

What is meant by adulteration?

The act of making any food or drug of poor quality by adding some substances to them is commonly referred to as adulteration. Such act of adulteration are mostly done in two ways, and these ways are:

• By removing certain substances from the food, or 
• By altering the existing natural properties of the food that are known.

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