WP.(MD)Nos.34278 & 36587 of 2025

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

Reserved On : 09.06.2026

Pronounced On : 23.06.2026

CORAM

THE HONOURABLE MR .JUSTICE N.SATHISH KUMAR

AND

THE HON'BLE MR.JUSTICE M.JOTHIRAMAN

WP.(MD)Nos.34278 & 36587 of 2025

and

WMP.(MD)Nos.27123 & 29095 of 2025

WP.(MD)No.34278 of 2025

C.Arundurai ...Petitioner

Vs.

1.The Commissioner,

Commissionerate of Prohibition and Excise Department,

2

nd

Floor, Ezhilagam Building,

Chepauk, Chennai.

2.The District Collector,

Sivagangai District, Sivagangai.

3.The Superintendent of Police,

Collector Complex, Aranmanai Vasal,

Sivagangai.

4.The Assistant Commissioner (Prohibition & Excise),

Prohibition & Excise Department,

Collectorate Campus,

Sivagangai.

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WP.(MD)Nos.34278 & 36587 of 2025

5.The Revenue Division Officer,

Karaikudi Taluk,

Sivagangai.

6.The Tahsildar,

Karaikudi Taluk,

Sivagangai.

7.The Deputy Director,

District Town and Country Planning,

District Collectorate Campus,

Sivagangai-630 562.

8.Santhosam Recreation Club,

Kotaiyur Main Road,

Karaikudi, Sivagangai District. ... Respondents

PRAYER : Writ Petition filed under Article 226 of the Constitution of

India, praying to issue Writ of Certiorari, to call for the records relating

to the impugned order passed by the first respondent in R.Dis.No.P and

E.2(2)/0216/2024 dated 12.11.2025 and quash the same as illegal,

arbitrary, violative of statutory rules.

(Prayer is amended vide Court dated 12.03.2026 in WMP.(MD)No.29252

of 2025 in WP.(MD)No.34278 of 2025)

For Petitioner: Mr.Muthucharan Sundaresh,

for Mr.M.Rajarajan

For R1, R2, R4

to R7 : Mr.B.Saravanan,

Senior Counsel,

for Mr.C.Jeganathan,

Counsel for State

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WP.(MD)Nos.34278 & 36587 of 2025

For R3 : Mr.I.Murugesan,

Government Advocate (Crl.side)

For R8 : Mr.AR.L.Sundaresan,

Senior Counsel,

for Mr.T.Bashyam

WP.(MD)No.36587 of 2025

Chithiral ...Petitioner

Vs.

1.The Commissioner,

Commissionerate of Prohibition and Excise Department,

2

nd

Floor, Ezhilagam Building,

Chepauk, Chennai.

2.The District Collector,

Sivagangai District, Sivagangai.

3.The Superintendent of Police,

Sivagangai District, Sivagangai.

4.The Assistant Commissioner (Prohibition & Excise),

Prohibition & Excise Department,

Collectorate Campus, Sivagangai.

5.Santhosam Recreation Club,

Rep.by Kalloor Rasu,

Karaikudi Kottaiyur State Highways,

Near Barma Colony Bus Stop,

Karaikudi, Sivagangai District. ... Respondents

PRAYER : Writ Petition filed under Article 226 of the Constitution of

India, praying to issue Writ of Mandamus, to direct the respondents 1 to

4 to cancel the FL2 license issued to the fifth respondent to sell Indian

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WP.(MD)Nos.34278 & 36587 of 2025

made foreign liquors in the name and style of Santhosam Recreation

Club at Karaikudi-Kottaiyur State Highways within the limits Karaikudi

municipal corporation, Sivagangai District by considering the

representation dated 05.12.2025 within a time frame.

For Petitioner: Mr.D.Venkatesh,

for Mr.A.Mohamed Haneef

For R1, R2 & R4 : Mr.B.Saravanan,

Senior Counsel,

for Mr.C.Jeganathan,

Counsel for State

For R3 : Mr.I.Murugesan,

Government Advocate (Crl.side)

For R5 : Mr.AR.L.Sundaresan,

Senior Counsel,

for Mr.T.Bashyam

COMMON ORDER

(Order of this Court was delivered by M.JOTHIRAMAN J.)

Under assail is the order passed by the Commissioner,

Commissionerate of Prohibition and Excise Department/first respondent

granting licence in R.Dis.No.P and E.2(2)/0216/2024 dated 12.11.2025.

Two writ petitions have been filed in the name of public interest

litigation.

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WP.(MD)Nos.34278 & 36587 of 2025

2.It is the case of the writ petitioner in WP.(MD)No.34278 of 2025

that the club, namely, Santhosam Recreation Club is located in the

locality of Burma Colony in Karaikudi Town. It is purely a residential

area, which is densely populated. The said recreation club had applied for

and obtained FL2 Bar license to serve liquor in their premises. The

proposed site is located in the very near vicinity of the highly revered

“Sri Sakthi Veerakaaliyamman Temple” situated less than 50 metres.

Further, a Church is also located in this region. All worshippers of

different faiths going to their respective place of worship above

mentioned will have to cross the said liquor bar to reach the place of

worship. The location of liquor bar within this close distance is in

blatant violation of Rule 8(1) of the Tamil Nadu Liquor Retail Vending

(in Shops and Bars) Rules, 2003, which prohibits establishing any liquor

shop or bar within 50 meters of a place of worship. The renowned

Alagappa University Science Campus is located in close proximity to the

said liquor bar. The site is adjacent to the State Highway Kotaiyur main

road where heavy vehicle traffic passes frequently. The said FL2 liquor

bar is situated in a highly sensitive and close proximity to essential

public services. As per Rule 13 of the Tamil Nadu Liquor (License and

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WP.(MD)Nos.34278 & 36587 of 2025

Permit) Rules and G.O.Ms.No.32, dated 21.05.2018, no FL2 liquor

license can be granted within 100 meters from any educational

institution, religious place, hospital or public utility area.

3.It is the case of the writ petitioner in WP.(MD)No.36587 of 2025

that Karaikudi city has a renowned name for having Alagappa University

and other Alagappa Colleges and Schools. In view of the potentiality of

educational institution, most of the students in and around Karaikudi are

studying at the educational institutions situated at Karaikudi. At Barma

Colony bus stop, situated at Karaikudi-Kottaiyur State Highway, the

authorities have given FL2 license. FL2 license was given without

following the Rules of the Tamil Nadu Liquor Retail Vending (in Shops

and Bars) Rules, 2003 and violating the guidelines issued by the Hon'ble

Apex Court on selling of liquors in National Highways and State

Highways, within the limits of municipal corporation. Adjacent to the

bar, Dhanya Hospital is located and nearby that Jeyam Hospital is there.

Opposite to the bar, Canara Bank is also there. Within 50 metres of the

bar, Sri Veeramahaliammal temple is also situated. Moreover, nearby the

bar, CSI church is also situated. Without considering the above aspects

and in violation to the rules, license was given to the club. Immediately,

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WP.(MD)Nos.34278 & 36587 of 2025

coming to know about the license given by the authorities, the public at

large along with social activities gathered and mage agitations. On the

result of lawful agitation, the bar was sealed by the revenue officials,

since the license was obtained violating the existing rules.

4.Since both the writ petitions have been filed as against the

issuance of FL2 license dated 12.11.2025, both the writ petitions are

disposed of by this common order.

5.The learned counsel appearing for the writ petitioner in WP.

(MD)No.34278 of 2025 would submit that the impugned licence has

been granted in violation of Rule 13 of the Tamil Nadu Liquor (Licence

and Permit) Rules, 1981, and G.O.Ms.No.32, dated 21.05.2018. The site

is situated in a busy area leading to and connecting with the State

Highway and is heavily used by school children, patients, pedestrians

and the general public, thereby posing a serious threat to public safety

and order. No local inspection was conducted, nor was any public

consultation undertaken. The site also falls within a residential zone. The

authorities have failed to consider the objections raised by the public and

have not adhered to the statutory safeguards prescribed under the

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WP.(MD)Nos.34278 & 36587 of 2025

relevant provisions. The first mandatory condition for the grant of FL2

license is that local needs justify the grant. The license authority failed

to consider that public interest is adversely affected by situating a liquor

shop in a densely populated residential/semi-residential area, proximate

to homes, offices, religious places and public pathway. The Hon'ble

Division Bench of this Court dated 18.08.2025 in WP.(MD)No.8038 of

2019 has categorically held that FL2 license shall not be granted to the

club unless their by-laws specifically incorporate the supply of liquor and

such amended by-laws are duly approved by the District Register under

the Tamil Nadu Societies Registration Act, 1975. Further, he would

submit that FL2 license shall not be granted in prohibited locations,

including areas near hospitals, educational institutions and religious

places, and that the State must verify and regulate such locations in the

interest of public health.

6.The learned counsel appearing for the petitioner in WP.(MD)No.

36587 of 2025 would submit that Karaikudi city has a renowned name

for having Alagappa University and other Alagappa Colleges and

Schools. In view of the potentiality of educational institution, most of

the students in and around Karaikudi are studying at the educational

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WP.(MD)Nos.34278 & 36587 of 2025

institutions situated at Karaikudi. At Barma Colony bus stop, situated at

Karaikudi-Kottaiyur State Highway, the authorities have given FL2

license. FL2 license was given without following the Rules of the Tamil

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

violating the guidelines issued by the Hon'ble Apex Court on selling of

liquors in National Highways and State Highways, within the limits of

municipal corporation. On the result of lawful agitation made by the

public at large, the bar was sealed by the revenue officials, since the

license was obtained violating the existing rules.

7.The learned Senior Counsel appearing for official respondents

would submit that the club is registered under the Registration of

Societies Act and has applied for FL2 license under Rule 16 of the Tamil

Nadu Liquor (Licence & Permit) Rules, 1981 before the first respondent.

The same was forwarded to the District Collector to sent a detailed report

along with specific recommendations. A detailed report was called for by

the District Collector from the Superintendent of Police, Tahsildar,

Revenue Divisional Officer. Accordingly, they have filed their report

before the District Collector, in which, all of them recommended for

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issuance of FL2 license. The Superintendent of Police carried out a field

inspection and found that the club satisfies the condition stipulated for

grant of FL2 license under Rule 17(b) of the Tamil Nadu Liquor (Licence

& Permit) Rules, 1981. Based on the recommendations reports, the

District Collector has recommended to the Commissioner, Prohibition

and Excise Department for issuance of FL2 license in favour of the club.

8.The learned Senior Counsel appearing for the Santhosam

Recreation club would submit that the subject club is registered under the

Society Registration Act. In order to satisfy the needs of their members,

they have applied for FL2 license and the first respondent after verifying

the documents and after getting recommendations from the authorities

concerned, issued FL2 license, on 12.11.2025. The distance rules stated

by the writ petitioner is stipulated under Tamil Nadu Liquor Retail

Vending Shops and applicable only to TASMAC shops. The respondent

club is situated far away from the Schools, Hospitals and temples. Sri

Sakthi Veera Kaliamman temple and church are located 70 metres away

from the club. There is no violation of Rule 8(1) of the Tamilnadu

Liquor Retail Vending (in Shops and Bar) Rules, 2003. Before issuance

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of FL2 license, all the conditions and requirements stipulated in

G.O.Ms.No.32, dated 21.05.2018 have been verified by the official

respondents including distance criteria of 50 metres from the place of

worship, educational institutions. The distance rules is not applicable to

the shop situated in Municipality area. The learned Senior Counsel

would further submit that the present writ petition has been filed to

cancel the FL2 license granted by the first respondent. An appeal remedy

is available before the Government as against the order passed by the

Commissioner, Prohibition and Excise Department, under Rule 2(5) of

the Tamil Nadu Prohibition Appeal and Revision Rules. As per the Rule,

the writ petitioner shall file an appeal before the Government. But,

without exercising the alternative remedy, straight away filed the present

writ petitions and the same are un-sustainable in law.

9.We have considered the submissions made on either side and

perused the available records carefully.

10.The present writ petitions have been filed aggrieved over the

issuance of FL2 license dated 12.11.2025, permitting Santhosam

Recreation Club for setting up a bar and the said FL2 license has been

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obtained by violating the rules.

11.It is not in dispute that as per the counter affidavit filed by the

District Collector that FL2 shop was opened on 17.11.2025. Due to

continuous protest by the general public, the liquor bar was temporarily

closed, on 19.11.2025. It is seen from the records that originally, one,

“,isQh; vGr;rp kd;wk;” (Elaingar Eluchi Mandram)was located in Door

No.324, Alagar Kovil Main Road, opposite to Government Hospital,

Melur Nagar, Madurai District. The same was registered under the

Societies Registration Act in Reg.No.107/2024, on 23.07.2014.

Subsequently, name has been changed as Santhosam Recreation Club, on

22.06.2023. The said recreation club registered before the Sub

Registrar, Karaikudi in Ref.No.88/2024, on 10.10.2024. This Court, vide

order dated 10.04.2026, appointed an Advocate Commissioner to inspect

the subject club to measure the distance between the shop and the temple

and the church and to file a report before this Court. Accordingly, the

Advocate Commissioner inspected the subject club and filed his report.

12.According to the writ petitioners, the bar is situated at

Karaikudi-Kottaiyur State Highway. The Hon'ble Supreme Court in the

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case of K.Balu Vs. State of Tamil Nadu wherein it has been held that no

liquor vending outlet shall be permitted within 500 meters of National or

State Highways. Per contra, according to the recreation club, the Hon'ble

Supreme Court in SLP(Civil) 10243/2017 dated 11.07.2017 categorically

held that “on 15.12.2016, the Hon'le Supreme Court rendered judgment

in the State of Tamil Nadu Vs K.Balu. Several directions were issued to

obviate dangers to the lives and safety of persons using highways”,

wherein, it has been categorically clarified as follows:-

7.The purpose of the directions contained in the order

dated 15 December 2016 is to deal with the sale of liquor

along and in proximity of highways properly understood,

which provide connectivity between cities, towns and

villages. The order does not prohibit licensed establishments

within municipal areas. This clarification shall govern other

municipal areas as well. We have considered it appropriate

to issue this clarification to set at rest any ambiguity and to

obviate repeated recourse to IAs, before the Court.

It is contended that the distance rule is not applicable to the municipal

areas.

13.It is to be noted that as per Rule 19(A) of the Tamil Nadu

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Liquor (License and Permit) Rules, 1981, on receipt of the application,

the licensing authority shall verify the particulars furnished in the

application. In the case of applications of all kinds, he shall satisfy

himself in general after due enquiry—(a) that the local needs justify the

grant of the licence; and (b) that public interest shall not suffer by the

grant of the licence applied for and that the privilege is not likely to be

misused.

14.It is pertinent to mention that Section 3(1) of the Tamil Nadu

Societies Registration Act provides that subject to the limitations

contained in Section 3(2), any society formed with objects such as the

promotion of education, literature, science, religion, charity, social

reform, art, crafts, cottage industries, athletics, sports (including indoor

games), recreation, public health, social service, cultural activities, the

diffusion of useful knowledge, or any other useful object within the

legislative competence of the State Legislature, as may be prescribed, is

eligible for registration under the Act.

15.It is also to be noted that the Tamil Nadu Prohibition Act, 1937

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WP.(MD)Nos.34278 & 36587 of 2025

has been entrusted for prohibition of the manufacture, sale and

consumption of intoxicating liquors and drugs in the State of Tamil

Nadu. However, such liquor shops causing nuisance or posing threat to

the residents of that locality must be looked into. There is no specific

clause / objective in the by-laws approved by the Registrar for selling of

liquor by obtaining FL2 licence from the Prohibition and Excise

Department. In the absence of any such clause in the by-laws, which are

to be approved under the Tamil Nadu Societies Registration Act, 1975,

selling of liquor in the Recreation Clubs cannot be permitted and it is a

violation of the by-laws of the Societies.

16.It is further to be noted that decision of the Hon'ble Division

Bench of this Court in the case of M.A.Sudhagar vs. The Government of

Tamil Nadu, rep. by its Principal Secretary and others reported in 2014

(4) CTC 721, wherein this Court elaborately dealt the issuance of FL2

license and it was held that on receipt of application for grant of FL2

licence, the Licensing Authority should satisfy in general, after due

enquiry, find three preliminary conditions are satisfied, namely (i) that

the local needs justify the grant of Licence; (ii) that public interest shall

not suffer by the grant of licence applied for and (iii) that the privilege is

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WP.(MD)Nos.34278 & 36587 of 2025

not likely to be misused. Further, the Hon'ble Division Bench of this

Court, by order dated 18.08.2025 in W.P.(MD) Nos.8038 of 2019 etc.,

batch, has held that, for the grant of an FL-2 licence to a recreation club,

the club's by-laws must provide for the supply of liquor and the amended

by-laws must be duly approved by the District Registrar.

17.It is pertinent to mention that Father of our Nation, Mahatma

Gandhi tried to achieve three important objectives, namely, removal of

untouchability, accomplishment of Hindu-Muslim unity and total

prohibition of liquor. However, while prohibition of toddy and arrack is

in force, the business of wholesale and retail sale of Indian-made Foreign

Liquors has been put under the control of the State Government

undertaking, namely, the Tamil Nadu State Marketing Corporation Ltd.

(TASMAC) with the slogan “Liquors ruins country, family and life”.

18.In the instant case on hand, the District Collector categorically

stated in their counter affidavit that FL2 shop was opened on 17.11.2025.

Due to continuous protest by the general public, the liquor bar was

temporarily closed, on 19.11.2025. This Court is of the view that FL2

licence shall not be granted in prohibited locations, including areas near

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WP.(MD)Nos.34278 & 36587 of 2025

hospitals, educational institutions and religious places and that the State

verify and regulate such locations in the interest of public health and

safety. The authorities have failed to comply with the statutories

contemplated in Rule 19(A) of the Tamil Nadu Liquor (License and

Permit) Rules, 1981 and also failed to comply with the mandatory

requirements under Tamil Nadu Societies Registration Act, 1975,

inasmuch as the mere incorporation of the word “Recreation” in the by-

laws of the clubs is insufficient without specifically stating the activities

to be undertaken and obtaining approval from the District Registrar. The

impugned FL2 licence was granted without following the restrictions

stipulated under Rule 8(1) of the Tamil Nadu Liquor Retail Vending

Rules, 2003. The authorities failed to consider the mandatory

requirements prescribed under the Rules and the public reasonably

expected the authorities to follow statutory safety norms and protect the

residential and religious environment. Temporary closure of the bar due

to public protests demonstrates the flawed, unsafe, and unlawful nature

of the license. The authorities have failed to consider the local needs

justify the grant of license, the public interest shall not suffer by the grant

of license applied and the conditions enumerated under Rule 19 of the

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WP.(MD)Nos.34278 & 36587 of 2025

Tamil Nadu Liquor (License and Permit) Rules. Thus, the impugned

license has been issued without considering the conditions and

procedures stipulated under 19 of the Rules and the same is liable to be

set aside.

19.In the result, the writ petition in WP.(MD)No.34278 of 2025 is

allowed and the impugned FL2 license in R.Dis.No.P and E.

2(2)/0216/2024 dated 12.11.2025 is hereby set aside. In view of the

order passed in WP.(MD)No.34278 of 2025, the writ petition in WP.

(MD)No.36587 of 2025 is disposed of. This order will not preclude the

respondent Club to file an application before the authorities for shifting

the FL2 Shop to some other place. If any such application is made, the

authorities shall consider the same on its own merits. No costs.

Consequently, connected miscellaneous petitions are closed.

[N.S.K., J.] & [M.J.R., J.]

23.06.2026

NCC :Yes / No

Index :Yes / No

gns

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WP.(MD)Nos.34278 & 36587 of 2025

To

1.The Commissioner,

Commissionerate of Prohibition and Excise Department,

2

nd

Floor, Ezhilagam Building,

Chepauk, Chennai.

2.The District Collector,

Sivagangai District, Sivagangai.

3.The Superintendent of Police,

Collector Complex, Aranmanai Vasal,

Sivagangai.

4.The Assistant Commissioner (Prohibition & Excise),

Prohibition & Excise Department,

Collectorate Campus,

Sivagangai.

5.The Revenue Division Officer,

Karaikudi Taluk,

Sivagangai.

6.The Tahsildar,

Karaikudi Taluk,

Sivagangai.

7.The Deputy Director,

District Town and Country Planning,

District Collectorate Campus,

Sivagangai-630 562.

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WP.(MD)Nos.34278 & 36587 of 2025

N.SATHISH KUMAR ,J.

and

M.JOTHIRAMAN , J.

gns

Pre-Delivery Judgement made in

WP.(MD)Nos.34278 &

36587 of 2025

23.06.2026

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