License Of Liquor Vend Cannot Be Cancelled Merely Because Public Sentiment May Be Opposed To Its Location: Delhi High Court

The Delhi High Court has observed that unless the license of a liquor vend is shown to fall foul of any statutory provision or otherwise established to be in violation of any rule or regulation, the same cannot possibly merit cancellation, merely because "public sentiment" may be opposed to its location.

Justice Yashwant Varma further added that public opinion or sentiment is not a factor relevant or germane under the Delhi Excise Act for locating a liquor vend.

The Court was dealing with a petition preferred by the Department of Excise assailing the order of 28 June 2019 passed by the Financial Commissioner. The impugned order restored the excise license which was granted to the respondent, M/S 2 Bandits Restaurant, setting aside an order in terms of which the same had been cancelled.

The counsel appearing for the petitioner Department submitted that sec. 16 of the Delhi Excise Act, 2009 confers ample power on the competent authority to cancel a license granted for any reason whatsoever.

The Court however did not agree with the submission after observing that the Department acting as a public authority is obliged to act fairly and surely not whimsically.

"The expression "for any reason whatsoever" cannot be recognised as empowering the respondent to cancel a license on grounds which are not contemplated under the Act. The provisions of Section 16 cannot be viewed as granting the Department of Excise a carte blanche to cancel a license validly granted in terms of the provisions of the Act and Rules framed thereunder on a ground which may not be legally sustainable or not contemplated under the Act," the Court observed.

Furthermore, the Court noted that the Financial Commissioner had noted that the solitary ground on which the license was sought to be cancelled was the issue of "public sentiment" and an "apprehension of disturbance of law and order".

In this backdrop, the Court observed:

"It becomes pertinent to note that the grant of license under the Act and Rules framed thereunder is not subject to "public sentiment". The apprehension of a law and order situation is clearly a different issue altogether and which must necessarily be looked into by the concerned police authorities. Unless the license of the liquor vend is shown to fall foul of any statutory provision or otherwise established to be in violation of any rule or regulation, the same cannot possibly merit cancellation merely because "public sentiment" may be opposed to its location."

"Public opinion or sentiment is not a factor relevant or germane under the Act for locating a liquor vend. While the Court is aware that principles of res extra commercium apply to trade in liquor, that would not justify the cancellation of a license validly granted and which is not established to be in violation of the law."

With the said observations, the plea was dismissed.

Case Title: DEPUTY COMMISSIONER EXCISE v. M/S 2 BANDITS RESTAURANT

Citation: 2022 LiveLaw (Del) 553

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