{"id":345843,"date":"2025-04-15T17:00:33","date_gmt":"2025-04-15T11:30:33","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=345843"},"modified":"2025-04-18T09:47:07","modified_gmt":"2025-04-18T04:17:07","slug":"delhi-hc-hauz-khas-social-liquor-sales-ban-quashed-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/04\/15\/delhi-hc-hauz-khas-social-liquor-sales-ban-quashed-legal-news\/","title":{"rendered":"Delhi High Court allows Hauz Khas \u2018Social\u2019 to resume liquor sales; Excise Department\u2019s ban quashed amid licensing delay"},"content":{"rendered":"
\n

Delhi High Court<\/span>: A petition was filed by Epiphany Hospitality Pvt. Ltd. (petitioner) the operator of the restaurant-cum-bar ‘Hauz Khas Social’, challenging the action of the Department of Excise, GNCTD, directing it to halt the sale of liquor from its premises on the ground of non-availability of a valid Eating House License being arbitrary and without legal basis. Sachin Datta<\/span>, J., held that the petitioner’s excise license remained valid and that, as per the Delhi Eating House, Registration Regulations, 2023, the Eating House License must be deemed valid during the pendency of its renewal application and thereby quashed the directions of the Excise Department and allowed the petitioner to resume liquor sales, while directing the Licensing Unit to process the renewal of the Eating House License expeditiously.<\/p>\n

The petitioner is the operator of a restaurant-cum-bar under the brand name “Social and Tinur”, popularly known as “Hauz Khas Social”. The establishment is located on the first and second floors of property bearing numbers 9A, 12, and T-12A, Hauz Khas Village, New Delhi. On the evening of 03-04-2025, the operations of the restaurant were abruptly disrupted when officials from the Department of Excise, GNCTD (Respondent 1), conducted an inspection and issued directions to halt the sale of liquor. The action was based on the alleged non-possession of a valid “Eating House License” by the petitioner at that time.<\/p>\n

It is undisputed that the petitioner holds a valid L-17 and L-17F license, allowing for the service of Indian and foreign liquor in an independent restaurant. Originally valid till 31-03-2025, the license had been extended until 30-06-2025 pursuant to circular dated 26-03-2025, issued by the Excise Department. However, the petitioner was facing administrative obstacles from the Licensing Unit of Delhi Police (Respondent 2) in the renewal process of its Eating House License, which had been valid until 31-03-2024. Despite submission of complete documentation and compliance with the stipulated requirements, the renewal had not been processed.<\/p>\n

On 06-02-2025, the petitioner received a Show Cause Notice (SCN) dated 21-01-2025 from Respondent 2, citing a report from the Delhi Fire Service dated 09-07-2024. The SCN alleged that the restaurant was illegally serving alcohol within 100 meters of a government school and village temples, in violation of the Delhi Eating House Registration Regulations, 2023. It claimed the petitioner was “not suitable” to operate an Eating House and the premises were not “fit” for operation, as per general licensing conditions.<\/p>\n

Despite having submitted a detailed reply to the SCN on 19-02-2025, Respondent 2 took no further action thereafter. However, the Excise Department, citing non-possession of a valid Eating House License, not only ordered a halt on liquor sales at the premises on 03-04-2025 but also seized the stock of liquor present at the bar and the L-17 store. The petitioner, aggrieved by this unilateral and sudden disruption, approached the Court seeking urgent relief, especially as the delay in license renewal was not attributable to them but rather to administrative lapses on part of Respondent 2.<\/p>\n

Counsel for Excise Department submitted that it was not denied that the petitioner has a valid L-17\/F license till 30-06-2025. It was contended that no seizure was made, only a direction was issued to halt liquor sales until further orders. This action was taken solely due to the absence of a subsisting Eating House License.<\/p>\n

Counsel for Delhi Police – Licensing Unit submitted that it was admitted that the petitioner’s renewal application is still under consideration. The delay in processing was attributed to the pending Area Suitability Report from the Delhi Police Unit concerned.<\/p>\n

The Court noted that the petitioner had been holding a valid Eating House License for the premises since 29-04-2014, and the same had been periodically renewed, most recently till 31-03-2024. The Court laid particular emphasis on Regulation 6(ii) of the Delhi Eating Houses Registration Regulations, 2023, which states that if a renewal application is duly submitted along with requisite documents, the premises is deemed to be duly registered until the renewal is granted or refused. It was found that the petitioner had submitted all necessary documents and that the only delay was due to pending administrative formalities involving internal reporting from the local police, which could not be blamed on the petitioner.<\/p>\n

The Court also highlighted that the respondents had failed to take any final decision on the SCN dated 21-01-2025, despite the petitioner’s reply submitted on 19-02-2025. Thus, the Court concluded that the petitioner had not violated any law or acted in bad faith. Instead, it was caught in the administrative inefficiency of the Licensing Unit, and the Department of Excise could not have legitimately suspended its operations or seized its liquor stock on that basis.<\/p>\n

The Court remarked that “Considering that under para-6(ii) of the Delhi Eating House, Registration Regulations, 2023, the registration already granted to the petitioner shall ensure, till the renewal certificate is issued or till an intimation of refusal is issued by the respondent 2, the direction contained in the aforesaid SCN-cum-order dated 08-04-2024, requiring the petitioner to “cease the Operation of Service of Liquor”, is ex-facie misconceived.”<\/span><\/p>\n

The Court directed<\/p>\n

(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 2 that renewal has been refused.<\/p>\n

(ii) the respondent 2 is directed to process the petitioner’s application for renewal of Registration \/ license 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 the date of order.<\/p>\n

(iii) the direction contained in the SCN-cum-order dated 08-04-2025, issued by the respondent 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.<\/p>\n

(iv) 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 licencing authority concerned. The licensing authority\/respondent 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.<\/p>\n

[Epiphany Hospitality Pvt Ltd. v. The Commissioner Excise Entertainment and Luxury Tax, 2025 SCC OnLine Del 2302<\/a>, Decided on April 9, 2025<\/span>]<\/p>\n\n

Ms. Shyel Trehan (Sr. Adv) along with Mr. Raghav Anand, Mr. Shubham Kathuria, Ms. Vidhi Jain, Mr. Suhail Ahmed, Advocates for petitioner<\/p>\n

Mr. Satender Sangwan (ACP) along with Mr. Mukesh Rana (Inspector) and Mr. M. Singh (SI) for Delhi Police.<\/p>\n","protected":false},"excerpt":{"rendered":"

By virtue of the prescription contained in para 6(ii) of the Delhi Eating House, Registration Regulations, 2023, unless and until the petitioner’s renewal application is declined, the petitioner’s operations cannot be precluded for want of an Eating House Registration Certificate\/license.<\/p>\n","protected":false},"author":67516,"featured_media":314886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[80972,80969,72373,80975,80971,80968,80966,80974,80967,80973,80970],"class_list":["post-345843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-barlicensedelhi","tag-delhiexciseban","tag-delhihighcourt","tag-delhirestaurants","tag-eatinghouselicense","tag-excisedepartment","tag-hauzkhassocial","tag-liquorlawsindia","tag-liquorlicense","tag-restaurantcompliance","tag-restaurantlicense"],"yoast_head":"\nDelhi HC quashes ban on liquor sales at Hauz Khas Social| SCC Times<\/title>\n<meta name=\"description\" content=\"Delhi High Court sets aside Excise Dept\u2019s liquor ban on Hauz Khas Social, citing valid license and delay 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