LAKHANLAL ETC. vs THE STATE OF ORISSA & ORS.(with connected appeals)

The Supreme Court interpreted Section 22(1) and Section 29(2) of the Bihar and Orissa Excise Act, 1915, affirming that the State Government cannot interfere with a finalized auction conducted by the Collector for the exclusive privilege to vend liquor. The Court held that the auction price is not a fee but a tax, and thus the rules governing the auction exceeded the Board's rule-making power. The High Court's decision to quash the State Government's order and direct the issuance of a license to the highest bidder was upheld, confirming the respondent's entitlement to the exclusive privilege under Section 22.