STATE OF HARYANA AND ORS. vs JAGE RAM AND ORS.

The Supreme Court ruled that under Article 226 of the Constitution of India, a writ petition cannot enforce reciprocal rights and obligations arising out of a contract, specifically in the context of the Punjab Excise Act, 1974. The Court held that the cancellation of the respondents' liquor licence was valid due to their failure to pay the required instalments as per the auction conditions and the Punjab Liquor Licence Rules, 1956. The Court affirmed the authority's decision to reauction the vend after the cancellation of the licence.