Facts of the Case

The petitioner, P. Rajesh Kumar, was carrying on a lawful business dealing in tobacco products under a valid licence and GST registration, while regularly paying applicable GST and taxes. Despite the Supreme Court having granted an interim stay against the Telangana Government's Notification No. 501/FSS-1/2022 dated 07.01.2022, the petitioner alleged that various State authorities were continuously interfering with his business activities. Aggrieved by such interference, the petitioner approached the Telangana High Court under Article 226 of the Constitution seeking protection against illegal obstruction of his lawful business operations.

 Issues Involved

  1. Whether the State authorities could interfere with the petitioner's licensed tobacco business despite the Supreme Court's interim stay on the Telangana tobacco prohibition notification.
  2. Whether such interference violated the principles of natural justice and amounted to arbitrary administrative action.
  3. Whether the petitioner was entitled to protection under Article 226 of the Constitution until the Supreme Court finally decided the pending proceedings.

 Petitioner's Arguments

  • The petitioner contended that he was conducting business legally under a valid licence and GST registration while complying with all statutory tax obligations.
  • It was argued that the Telangana Government's prohibition notification dated 07.01.2022 had already been stayed by the Hon'ble Supreme Court in pending Special Leave Petitions.
  • Despite the subsisting stay order, the respondents were allegedly interfering with the petitioner's business, thereby violating the Supreme Court's directions.
  • The petitioner submitted that such interference was arbitrary, illegal, contrary to the principles of natural justice, and liable to be restrained by the High Court.

 Respondent's Arguments

  • The State was represented through the learned Assistant Government Pleader.
  • During the hearing, it was submitted that the controversy involved in the present writ petition was already covered by the earlier judgment of the Telangana High Court in W.P. No. 34806 of 2022 & Batch decided on 21.09.2022, wherein appropriate directions had already been issued concerning identical issues.

 Court Order / Findings

The Telangana High Court observed that the present dispute stood squarely covered by its earlier decision in W.P. No. 34806 of 2022 & Batch.

Following the earlier judgment, the Court held that:

  • As long as the interim orders passed by the Hon'ble Supreme Court in SLP(C) Nos. 1656 and 5399 of 2022 remained operative, the respondents shall not interfere with the petitioner's lawful business activities.
  • The Court also noted that the Director General of Police had already issued a circular to all concerned officers.
  • It was clarified that if any officer acted contrary to the said directions, such action would be viewed seriously.
  • Accordingly, the writ petition was disposed of without costs and all pending miscellaneous applications stood automatically closed.

 Important Clarification

  • A valid licence, GST registration, and compliance with applicable tax laws strengthen the legal protection available to a business against arbitrary interference by authorities.
  • Where the Supreme Court has stayed the operation of a Government notification, subordinate authorities are bound to comply with such stay.
  • Administrative authorities cannot disregard binding judicial orders while taking enforcement action.
  • The High Court reiterated that any violation of the Supreme Court's interim protection by government officials would be viewed seriously.

Sections / Provisions Involved

  • Article 226 of the Constitution of India
  • Section 151 of the Code of Civil Procedure, 1908
  • Food Safety and Standards Act, 2006 (relating to the impugned notification)
  • Notification No. 501/FSS-1/2022 dated 07.01.2022
  • SLP(C) Nos. 1656 of 2022 and 5399 of 2022 (Supreme Court)

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785143487_2075compressed.pdf

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