Campbell v Three Stars Trading Company Limited [2007] NZLLA 1288 (11 December 2007)

Last Updated: 29 January 2012

Decision No. PH 1288-1289/2007

IN THE MATTER of the Sale of Liquor Act 1989

AND

IN THE MATTER of an application pursuant to s.132 of the Act for suspension or cancellation of off-licence number 008/OFF/14/2004 issued to THREE STARS TRADING LIMITED in respect of premises situated at 3/34 Riverton Road, Manurewa, Manukau City, known as "Riverton Liquor"

AND

IN THE MATTER of an application pursuant to s.135 of the Act for suspension or cancellation of General Manager's Certificate number GM/08/310/2001 issued to GURDIAL SINGH

BETWEEN GAVIN JAMES CAMPBELL
(Police Officer of Manukau City)

Applicant

AND THREE STARS TRADING LIMITED

First Respondent

AND GURDIAL SINGH

Second Respondent

BEFORE THE LIQUOR LICENSING AUTHORITY

Chairman: District Court Judge E W Unwin
Member: Ms J D Moorhead

HEARING at PAPAKURA on 3 December 2007

APPEARANCES

Sergeant G J Campbell – NZ Police – applicant
Mr G Singh – for first respondent and as second respondent
Mr P Radich – Manukau District Licensing Agency Inspector – to assist

ORAL DECISION OF THE AUTHORITY

[1] There are two enforcement applications before the Authority. The first application is for the suspension or cancellation of an off-licence issued to Three Stars Trading Limited in respect of a standalone bottle store situated in Manurewa known as "Riverton Liquor". The second and related application is for the suspension or cancellation of a General Manager's Certificate issued to Mr Gurdial Singh.

[2] The grounds for the first application are that:

• [a] The licensed premises are being conducted in breach of s.165 of the Act. This section makes it an offence for any licensee or manager to sell or supply liquor to any person at any time when the licensee is not authorised to do so by the licence.
  
• [b] The conduct of the licensee is such as to show that it is not a suitable entity to hold a licence.
  

[3] In relation to the General Manager's Certificate the application is based on the ground that Mr Singh's conduct has been such as to show that he is not suitable to hold the certificate.

[4] The applications were brought by Sergeant Gavin James Campbell. Sergeant Campbell is currently the officer in charge of the Counties Manukau District Licensing Unit. He advised us that the Counties Manukau Police along with their partner organisations, the Manukau District Licensing Agency, and the Auckland Regional Public Health Service, routinely integrity test licensed premises within Manukau for compliance with the Act. A component of this integrity testing is where premises are tested by using volunteer minors to purchase liquor at the direction of the Police.

[5] The testing is generally linked to intelligence sources and this was such a case. The licence for the premises known as "Riverton Liquor" is held by Three Stars Trading Limited for which Mr Gurdial Singh is the majority shareholder and a director.

[6] On Thursday 21 June 2007 at about 6.15 pm, a volunteer aged 17 went to "Riverton Liquor". When the volunteer approached the premises she was met by a male at the door. He asked her what she wanted, and she said that she was looking for a four pack of “Pulse” which we gather, is an RTD brand. The volunteer was asked to wait. The person then went into the premises and produced the liquor. He told the volunteer that she had to pay for the liquor at the dairy which was situated two shops away within the same shopping area.

[7] The volunteer went into premises known as "Rosemead Superette" and spoke with Mr Gurdial Singh who was working behind the counter. Mr Singh asked the volunteer about her age and whether she had identification. She gave a date of birth which would indicate that she had reached the age of 18, but said that she did not have her driver licence, or any other form of identification, with her. She said that she had come over from the North Shore.

[8] According to a later statement, Mr Singh was in a hurry. He took the cash and allowed the sale to take place. As a result he was subsequently charged before the District Court with selling liquor as an unlicensed person. He was duly convicted, having pleaded guilty on 21 August 2007. He was fined $450 with costs of $130.

[9] Mr Singh has acknowledged that he made a stupid mistake. He said that he was full of remorse for what had happened, and that for some time he had been considering getting out of the liquor business. He said that this particular incident had influenced him to make that decision final.

[10] Mr Singh produced a copy of a contract which was entered into on 15 October 2007. Under the contract, it had been agreed that the "Riverton Liquor" would be sold with possession on 7 November last. Mr Singh also produced a copy of a temporary authority which was issued on 12 November 2007 to a new company. We are advised by the District Licensing Agency that an application for the off-licence has yet to be filed. On the other hand Mr Singh confirmed that the money in respect of the purchase of the business had been paid to his lawyers, and been paid out to him.

[11] He stated that as far as he was concerned, he no longer owned the business and he no longer had any involvement with it. He said that he was not going to renew his General Manager's Certificate, which falls due in a few days time. Mr Singh accepted that once a new off-licence was issued in respect of "Riverton Liquor", then there would be no difficulty in the current off-licence being cancelled. Mr Singh made the plea that it was his mistake, and therefore any consequences of such a mistake should not impact on the new purchaser.

[12] As to the latter matter we accept that plea. It has been our consistent policy that if mistakes are made by licensees, then the impact and consequences of any enforcement action will not as a matter of right, impact on a new purchaser who is an innocent party.

[13] There were some misgivings by the District Licensing Agency Inspector as to how the transaction has taken place, and who exactly are the owners. As far as we are concerned we are satisfied that the premises have been sold in an arms-length transaction.

[14] In those circumstances, we accept that Mr Singh has taken a responsible and reasonable approach to the matter. Accordingly we are prepared to deal with both matters in the following way.

[15] We are satisfied that the grounds for both applications have been established. We are satisfied that, subject to the rights of the purchasing company, it is desirable that orders be made. For the reasons which we have set out we confirm that the General Manager's Certificate issued to Gurdial Singh will now be cancelled.

[16] We also confirm that subject to the issue of a new off-licence for the premises known as "Riverton Liquor", the current off-licence number 008/OFF/14/2004, issued to Three Stars Trading Limited, will be cancelled.

DATED at WELLINGTON this 11th day of December 2007

B M Holmes
Deputy Secretary

Gurdial Singh.doc(aw)