Intoxicating Liquor - Definition - Law Dictionary Home Dictionary Definition intoxicating-liquor

Definition :

Intoxicating liquor, the word 'intoxicating liquor' is not confined to potable liquor alone but would include all liquor which contain alcohol. Liquor should not only cover alcoholic liquor which is generally used for beverage purposes wand produce intoxication but would also include liquids containing alcohol, State of U.P. v. Synthetics and Chemicals Ltd., AIR 1980 SC 614: (1980) 2 SCR 531: (1980) 2 SCC 441. [Constitution of India, List II, 7th Sch., Entry 8]

See also Synthetics and Chemicals Ltd. v. State of Uttar Pradesh, (1990) 1 SCC 109.

Intoxicating liquors. The sale of intoxicating liquors by retail in England and Wales is now mainly regulated by the Licensing (Consolidation) Act, 1910 (10 Edw. 7 & 1 Geo. 5, c. 24), which repealed (see Sched. VII.) the whole or part of thirteen earlier Acts. The effect of this statute is shortly as follows:-

1. Grant of Licence.--Defining 'intoxicating liquor' as meaning 'spirits, wine, beer, porter, cider, perry, and sweets, and any fermented, distilled, or spirituous liquor which cannot, according to any law for the time being in force, be legally sold without an excise licence'; two licences are in every case required (except where the sale is in theatres or on packet-boats, railway restaurant cars, or canteens, or of methylated spirits or spruce, or by the holders of wholesale spirits or wine licences)--one from the justice of the peace, and one from the Inland Revenue, the first discretionary, and the second obtainable as of right, on production of the justices' licence. The justices' licence is grantable only at a 'general annual licensing meeting,' held in every division of a county, and in every borough having a separate commission of the peace, in the first fourteen days of February (s. 10). The Licensing Act, 1921, s. 11, provides that any liquor found on analysis at any time to be of an original gravity not exceeding 1,016 degrees and to contain not more than 2 per cent. of proof spirit, which may be sold under the excise laws without an excise licence, is not to be deemed beer or an intoxicating liquor within the meaning of the Act of 1910.

2. Character of Licence.--The licences are either (a) general, authorizing the sale of any kind of liquor to be drunk either on or off the premises where sold, or (b) particular, authorizing the sale of only wine or beer or spirits, as the case may be, to be drunk on and off, or only off the premises where sold, as the case may be.

The general licence is commonly called an 'alehouse licence' or a 'public-house licence' the licence for sale for consumption on or off the premises an 'on-licence,' and that for sale for consumption off the premises only an 'off-licence'

3. Duration of Licence.--Each licence (except 'a new licence,' see below) is expressed (see s. 4) to be for one year only, commencing from the 5th of April, and a licence is not extended by transfer or special removal.

4. Renewal.--A licence granted by way of renewal requires no confirmation. From a refusal to renew, the grounds of which must be specified in writing [s. 18(2)], there is (see s. 29) an appeal to quarter sessions. Holders of certain wine and beer licences, if first granted before 1869 (before which year wine and beer might be sold without a justices' licence), have special privileges (see Sched. II.).

Before 1904 justices had an absolute discretion (subject to compliance with procedure as to notices, etc.) to refuse to renew the general 'public-house licence' (Sharpe v. Wakefield, 1891, AC 173), though prior to that decision the usual practice was to renew such licences in all cases except where actual misconduct on the part of the holder was shown.

Since the passing of the Licensing Act, 1904 (4 Edw. 7, c. 23), this absolute discretion has been taken away and the power in the licensing justices to refuse the renewal of an old 'on-licence' is confined to certain grounds specified in the First and Second Schedules to the Act of 1910. These specified grounds' vary according to whether the licence in respect of the premises in question was in force on (1) 1st May, 1869, called 'old' beer-house licences, (2) 25th June, 1902, or (3) 15th August, 1904. Licences first granted since that date can never be the subject of renewal. Their continuance will be dealt with in the same way as the grant of a new licence.

The owners of premises licensed before 1869 under special Acts for the sale of beer or wine no longer enjoy the privilege of renewal as of right in the absence of ground for refusal affecting the character of the licensee or his house. One important distinction, however, between these ante-1869 licences and other existing on-licences is drawn by the Act: the renewal of them cannot be refused without compensation on the grounds of structural deficiency or unsuitability, as can the renewal of other existing on-licences.

In the case of other on-licences the grounds of non-renewal must rest mainly on misconduct, but it is further provided that in every case of the refusal of the renewal of an 'on-licence' existing at the time of the passing of the Act by licensing justices they are to state in writing the grounds of refusal, and also (indirectly and clumsily) that renewals may be refused without compensation on the ground of an habitual and persistent refusal 'to supply suitable refreshment (other than intoxicating liquor) at a reasonable price,' or because 'the holder of the licence has failed to fulfil any reasonable undertaking given to the justices on the grant or renewal of the licence', see R. v. Dodds, (1905) 2 KB 40.

5. Transfer and Removal.--For the purposes of transfer the licensing justices at the general annual licensing meeting appoint (s. 22) not less than four or more than eight transfer sessions. The cases in which and the persons to whom a transfer can be granted are set out in Sched. IV.

A removal of the licence is the removal from the premises in respect f which it was granted to other premises. Such a removal is either an 'ordinary removal,' and is in the discretion of the licensing justices, and the procedure is similar to that required for the grant of a 'new licence' (see below) and must be confirmed by the 'confirming authority' (s. 26); or is a 'special removal,' i.e. one which was necessary because the premises are about to be pulled down for some public purpose or have been rendered unfit for use by reason of fire (s. 24), and then the procedure is similar to that for a transfer (s. 27).

6. Compensation for Non renewal.--The power of the licensing justices of any licensing district to refuse a renewal on the ground that the licences in that district have become too many is transferred from the licensing justices to quarter sessions, and they are constituted the compensation authority (s. 2); but quarter sessions can exercise such power only (1) on a reference from the licensing justices (s. 19), and (2) on payment of compensation to the dispossessed licensees (s. 20).

The reference is obligatory on the licensing justices when they are of opinion that the question of renewal requires consideration on other than the 'specified grounds' (s. 19), and a consideration of their reports is obligatory on quarter sessions, which may refuse the renewal. The compensation is a sum equal to the difference between the value of the licensed premises as licensed and their value as unlicensed, together with any depreciation in trade fixtures. It is to be paid to 'the persons interested,' and in default of agreement between them and quarter sessions the amount of it is to be determined by the Commissioners of Inland Revenue subject to appeal to the High Court of Justice, but the compensation authority has power to refer questions to the county Court.

The moneys required for these payments are to come out of a compensation fund to be constituted by quarter sessions annually imposing, 'unless they certify to the Secretary of State that it is unnecessary to do so in any year,' charges on all old 'on-licences' renewed within their area. The charges are in proportion to the value of the licensed premises and at rates not exceeding certain maxima set out in Sched. III., ranging from 1l. on premises under 15l. yearly value to 100l. on premises of 900l. yearly value or more. If the tenure of the holder of the licence is leasehold, he may deduct [s. 21(3)] from his rent a percentage of the charge, lessening with the length of his term, ranging from 88 per cent. in the case of an unexpired term of two years to 1 per cent. for 55 to 60 years, a person whose unexpired term does not exceed one year being entitled to treatment as a freeholder, and to deduct 100 per cent. The charges are to be levied as part of the corresponding Excise Licence duties, and a deduction can be made in respect of them in Income Tax Returns, Smith v. Lion Brewery Co., 1911 AC 150; Usher's Brewery v. Bruce, 1915 AC 433.

7. New Licences.--The powers and regulations as to the grant of new licences inaugurated by the (English) Act of 1904 are continued in the Con-solidation Act, ss. 12-15. The jurisdiction to confirm new licences is in the quarter sessions, who are constituted the confirming authority except in boroughs (see below), and the licensing justices in granting 'on-licences' are armed with most comprehensive and far-reaching powers. They may attach such conditions as to payment, tenure, and 'any other matters' as 'they think proper in the interest of the public,' it being obligatory in every case to attach such conditions as 'having regard to suitable premises and good management' they 'think best adapted for securing to the public any monopoly value which his represented' by the increased value arising in the opinion of the justices from the licence being attached. New licences may also be granted for terms not exceeding seven years, instead of for one year only, as before 1904 had been the practice for some 150 years. At the end of the seven years or other fixed period an application for re-grant is to be treated as an application for a new licence and not for a renewal, and during that time the licence is to be subject to forfeiture if any condition imposed on the grant is not complied with or if the licence holder is convicted of any offence [s. 14(4)] The confirming authority, however, i.e., in counties quarter sessions, in boroughs not having ten justices a joint county and borough committee, and in other boroughs the whole body of justices [s. 2(3)]--may 'with the consent of the justices authorized to grant the licences vary any con-ditions attached to the licence' [s. 14(5)].

8. Register of Licences.--The clerk of the licensing justices keeps (s. 50) a register in which are entered the names of the owners of licensed premises and the holders of the licences. Every conviction is entered on the register as well as forfeitures, and disqualifications of premises or persons. A registra-tion fee of 1s. is payable on every grant, renewal, transfer, or removal.

9. Police Regulations.--The holders of licences are subject to very strict police regulations. Their houses must be closed at certain hours, and may be entered by the police at anytime (s. 81). They are subject to penalties for permitting drunkenness or gaming for harbouring constables or prostitutes, for sale to children under 14 (see CHILDREN), and other offences (ss. 65-85). In some cases a convic-tion entails forfeiture of the licence.

10. Procedure, and Home Office Rules.--Quarter sessions may divide their area into districts for the purposes of the Act (s. 5), and may delegate any of their powers under it to a committee appointed in accordance with rules to be approved by the Home Office (s. 6), and except in a county borough shall so delegate their power of confirming the grant of a new licence, and of determining any question as to the refusal of a licence under the Act. The Home Office also may make general rules for carrying the Act into effect, and particularly providing for provisional renewal of licences included in reports of justices as not to be renewed without considera-tion, for regulating the management and applica-tion of the compensation fund, for constituting where requisite standing committees of quarter sessions, and for regulating the procedure of quarter sessions on the consideration of the reports of licensing justices, and on any hearing as to the refusal of renewals or the approval or division of the amount to be paid as compensation. See also Licensing Act, 1921, which repeals ss. 54, 56, 61, 62, and Sched. VI. of the Act of 1910, and repeals part of s. 58(2) and alters the hours during which intoxicating liquor may be sold, making the necessary modifications to the relevant sections (see Part II. of Sched. I.). For further alterations in the law, see the Act itself and the schedules thereto. The Licensing (Permitted Hours) Act, 1934 (24 & 25 Geo. 5, c. 26), passed to remedy the decision in R. v. Sussex Licensing J.J., (1934) 50 TLR 410, gives power to the justices to increase the permitted hours only during the summer period by half an hour, but never for more than eight consecutive weeks.

Clubs must be registered, but the distribution of intoxicating liquors among the members has been described as 'a transfer of special property in the goods', Graff v. Evans, (1882) 8 QBD 373; it is not a sale.

A bona fide but ill-conducted club may be struck off the register (s. 95); there are penalties for supplying liquor in an unregistered club (s. 93). The (English) Intoxicating Liquor (Sale to Persons under Eighteen) Act, 1923, restricts the sale of intoxicating liquor to young persons. (English) Children and Young Persons Act, 1933 (23 Geo. 5, c. 12), s. 6, prohibits children to be allowed in bars of licensed premises with certain obvious exceptions, namely, children of licence holder, railway refreshment rooms, etc. See CHILDREN, sub. tit. Sale of Liquor. See LIQUOR LICENCES.

Consult the works of Paterson, Mackenzie, Talbot, Montgomery.