Chapter L CL :

(1) This Act may be called the Punjab Local Option Act, 1923. (2) It extends to Union territory of Chandigarh. (3) It shall come into force on such date as State Government may by notification appoint in that behalf.

In this Act unless there is anything repugnant in the subject or context (1) "Liquor" has the meaning assigned to it in the Punjab Excise Act, 1914. (2) "Foreign liquor" means (a) all liquor imported by sea into the whole of India except Part B States other than rectified spirit, denatured spirit and perfumed spirit ; (b) all beer manufactured in India. (3) "Local body" means a district board established under the Punjab District Boards Act, 1883, or a municipal committee or notified area committee established or appointed under the Punjab Municipal Act, 1911, or a small town committee established under the Punjab Small Towns Act, 1921. (4) "Empowered local body" means a local body concerning which a declaration has been made under section 3 that it may exercise the powers therein specified. (5) "Sale" includes any transfer other than by way of gift. (6) "Licensed shop" means the business premises of a person licensed to sell liquor by retail under the Punjab Excise Act, 1914, as specified in the license, but does not include any of the following places in which only foreign liquor is sold, namely : (i) a club, (ii) a hotel, (iii) a restaurant bar, (iv) a railway refreshment room except that kept for Hindus and Muhammadans, (v) a railway restaurant car. (7) "Local area" means the area over which a local body has authority.

The Central Government shall, on the application of a local body, within a period not exceeding three months from the date of such application, declare by notification that such local body may exercise the powers conferred under sections 4, 5 and 8.

(1) An empowered local body may from time to time by resolution passed in accordance with its rules of business prescribe the maximum number of licensed shops at which liquor may be sold within its local area. (2) Such number shall be not less, in the case of a municipal committee, than one-third, and in any other case, than one-half of the total number of shops licensed by the Collector for the retail vend of liquor on 31st March, 1923, within the limits of such local area. (3) Such resolution shall take effect from the 1st of April, in the year next following the date on which it was passed.

(1) An empowered local body may by resolution passed from time to time in accordance with its rules of business (a) prescribe a maximum number, which may be less than the proportion prescribed in sub-section (2) of section 4, of licensed shops at which liquor may be sold within its local area ; or (b) direct that liquor may not be sold at any licensed shop within such local area : Provided that no such resolution shall have effect under this Act until it has been submitted by way of referendum to the registered electors of such empowered local body, and has been confirmed by a two-thirds majority of the total number of such electors. (2) When a resolution has been confirmed under sub-section (1) it shall take effect from the 1st day of April of the year next following the date of such confirmation and shall thereafter remain in force, provided that at any time such empowered local body may by further resolution declare that such resolution shall cease to have effect upon the 1st day of April in the year next following the date of such further resolution, and such resolution shall accordingly cease to have effect from such date.

Notwithstanding anything contained in the Punjab Excise Act, 1914, and the rules made thereunder with regard to the powers and functions of the Collector under the said Act a resolution passed under section 4 or passed and confirmed under section 5 shall be binding upon the Collector of the District in which the local area concerned is situated : Provided that if the Collector is of opinion for reasons to be recorded in writing that within such local area illicit distillation or smuggling of alcohol has been carried on or connived at, within the two years preceding the date of the passing of such resolution, by any of the residents of such local area, such resolution shall not be binding upon him, unless the Commissioner orders that it shall be so binding.