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Synopsis

The Delhi High Court, recently, allowed Social Hauz Khas to continue serving alcohol while their Registration Certificate is undergoing the renewal process. The bench of Justice Sachin Datta held, “the premises in respect of which the Registration Certificate is to be renewed, shall be deemed to be duly registered until such registration certificate is renewed and delivered to the applicant online, or till an intimation that the renewal of the registration certificate has been refused, is communicated to such person”. 

These observations were made in a petition filed by Epiphany Hospitality Pvt. Ltd., the operator of the restaurant-cum-bar ‘Hauz Khas Social’, situated in Hauz Khas Village, New Delhi. The petition arose from a disruption in the restaurant's operations on the evening of April 3, 2025, following directions issued by the Department of Excise, GNCTD, to halt the sale of liquor due to the absence of a valid Eating House License.

It was not disputed that the petitioner held a valid L-17 and L-17F liquor license, originally issued on March 27, 2023, and valid until March 31, 2025. The license has since been extended until June 30, 2025, through a government circular dated March 26, 2025. However, the Excise Department took action based on the non-availability of a valid Eating House License, despite the petitioner’s claim that the renewal of the license was pending due to administrative delays.

The petitioner contended that although all required documentation had been submitted for renewal, the Licensing Unit of the Delhi Police had delayed processing the application. The previous Eating House License was valid until March 31, 2024, and a Show Cause Notice (SCN) had been issued on January 21, 2025, alleging that the restaurant was serving alcohol within 100 meters of a government school and village temples — a potential violation under the Delhi Eating House Regulations, 2023. The petitioner submitted a detailed reply on February 19, 2025, and the authorities have taken no further action since.

During the inspection on April 3, 2025, the Excise Department directed the petitioner to cease liquor sales due to the pending renewal of the Eating House License. The petitioner argued that this action was unwarranted, as the license had not been cancelled and that the delay was solely due to the absence of an 'area suitability report' from the local police, which was beyond the petitioner’s control.

The court observed that the petitioner had held a valid Eating House License since April 2014, which had been renewed regularly. It further held that under Para 6(ii) of the Delhi Eating House Registration Regulations, 2023, if a renewal application is duly submitted, the premises in question shall be deemed to be registered until the renewal certificate is delivered or a rejection is communicated.

The court noted that the Licensing Unit had not issued a rejection, and the application for renewal remained pending. It was also acknowledged that the restaurant had complied with all fire safety regulations, as verified in a re-inspection conducted by the Delhi Fire Service on February 3, 2025.

Accordingly, the court issued the following directions:

“(i) in terms of para-6(ii) of the Delhi Eating Houses, Registration Regulations, 2023, the petitioner‟s premises shall be deemed to be duly registered thereunder, until its registration certificate is duly renewed and delivered OR till an intimation is send by the respondent no.2 that renewal has been refused. 
(ii) the respondent no.2 is directed to process the petitioner‟s application for renewal of Registration / licence under the Delhi Eating House, Registration Regulations, 2023 and take a decision thereon (either accepting the renewal application or intimating refusal thereof), as expeditiously as possible, and preferably within a period of two weeks from today. 
(iii) the direction contained in the SCN-cum-order dated 08.04.2025, issued by the respondent no.1, to the extent it directs that the petitioner shall cease operation of service of liquor from its restaurant, is stayed till adjudication of the said SCN. The petitioner shall duly respond to the SCN-cum-order dated 08.04.2025 (whereby the petitioner has been directed to show cause as to why its excise licence be not suspended) within the time granted thereunder. The same shall be duly adjudicated by the concerned licencing authority. The licensing authority/respondent no.1, shall take into account the provision/s of para-6(ii) of the Delhi Eating House, Registration Regulations, 2023 and the outcome of the petitioner‟s application seeking renewal under the said Regulations”.

For Petitioner: Senior Advocate  Shyel Trehan with Advocates Raghav Anand, Shubham Kathuria, Vidhi Jain and Suhail Ahmed
Case Title: Epiphany Hospitality Pvt Ltd v Commissioner Excise Entertainment And Luxury Tax (2025:DHC:2516)