CHITRA vs STATE OF KERALA .

The Supreme Court addressed the issue of entitlement to proportionate annual rental for an FL3 licence under Rule 14 of the Foreign Liquor Rules. The Court held that the Division Bench of the Kerala High Court erred in denying the Appellant's claim for proportionate payment, emphasizing the principle that an act of court should not prejudice a party. The Court allowed the appeal, permitting the Appellant to pay the balance fee without incurring interest on delayed payments, thereby reinforcing the precedent set in R. Vijaykumar v. Commissioner of Excise.