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In a recent decision, Justice C. Sarvanan of the Madras High Court has directed Tamil Nadu State Marketing Corporation (TASMAC) to close down all the “bars” attached to the retail liquor shops. 

Justice Saravanan observed that, 

"The provision as it stands today does not permit a person to be in public in an intoxicated state. Therefore, the respondents TASMAC as a State Monopoly can only confine itself with “wholesale” and “retail sale” of alcohol/liquor and cannot be allowed to be seen actively encouraging a person to consume alcohol in public space and violate the sanctions under the law."

The Court was hearing a bunch of petitions filed by the “bar” licensees for 2019-2021. The petitioner's sought extension of their licenses because they could not hold business during the pandemic. 

The Court dismissed the petitions holding that TASMAC can only confine itself to selling alcohol and not get into the Bar business. Allowing such bars to prop up under TASMAC's watch means TASMAC is encouraging public intoxication which is barred by law. The Court opined

"A person who is found in a state of intoxication in any “public place” is punishable for an offence under the Act. A person consuming liquor in a bar does not necessarily go for few pegs. Chances are that such a person who goes there to get fully intoxicated. These bar facilitates such an environment."

The Court further referred to under Section 4A of Tamil Nadu Prohibition Act of 1937 a person found in a state of intoxication in a public place could be imprisoned for three months or imposed with a fine of ₹1,000 or both. Tus as long as such provision remains TASMAC can not be allowed to carry on such activities. 

The Court further noted that TASMAC may not be directly opening up bars for its customers, but it a person leaving TASMAC shop and going into bar for only one reason. 

"It is to be further underlined, that a person choosing to consume the liquor purchased from TASMAC shop in the Bar goes only to get intoxicated," the Court stated. 

The Court thus ordered all such bars to be closed down within six months and further ordered a call back of all tenders. 

The Court in the course of the order also looked back on the history of law on alcohol consumption and opined "today there is no prohibition against consumption. On the other hand, there is regulation of manufacture, sale and batch consumption of alcoholic liquor and intoxicating drinks in the State." The Court noted that there is a mixed history when is comes to alcohol. Earlier it was accepted, however of late owing to ills and social menace and deleterious impact on the society, Madras Prohibition Act, 1937 was enacted. 

S.Jagannathan vs. The Managing Director, Tamil Nadu State Marketing Corporation Limited