“Public opinion or sentiment, not a factor relevant under Delhi Excise Act for location of Liquor vends”: Delhi High Court

The Delhi High Court recently observed that public opinion or sentiment is not a factor relevant or germane under the Delhi Excise Act, 2009 for locating a liquor vend.

Court was dealing with a petition by the Department of Excise challenging the order of June 28, 2019, passed by the Financial Commissioner. The impugned order restores the excise license which was granted to the M/S 2 Bandit Restaurant, setting aside the order of January 18, 2018, in terms of which the same had been canceled.

A single-judge bench of Justice Yashwant Varma while dismissing the petition noted, “Unless the license of the liquor vend is shown to fall foul of any statutory provision or otherwise established to violate any rule or regulation, the same cannot possibly merit cancellation merely because ‘public sentiment’ may be opposed to its location.”

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

To which Court stated, “The Court finds itself unable to countenance that submission since undisputedly the Department acting as a public authority is obliged to act fairly and surely not whimsically.”

Court further added, “The expression for any reason whatsoever cannot be recognized 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 that may not be legally sustainable or not contemplated under the Act.”

Additionally, Court noted, “The Financial Commissioner has noted that the solitary ground on which the license was sought to be canceled was the issue of ‘public sentiment’ and an ‘apprehension of disturbance of law and order’.”

“It becomes pertinent to note that the grant of license under the Act and Rules framed thereunder is not subject to ‘public sentiment’,” emphasized the court.

Conclusively, Court observed, “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 violate 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 violate the law,” added the Court.

Accordingly, the petition was dismissed.

Case Title: Deputy Commissioner Excise v. M/S 2 Bandits Restaurant