Excise department cannot cancel license of liquor vend on basis of public sentiment: Delhi High Court

The Delhi High Court recently held that a license granted to a liquor vend under the Delhi Excise Act, 2009 cannot be cancelled merely on the basis of 'public sentiment' with regard to its location (Deputy Commissioner Excise v. M/S 2 Bandits Restaurant)..While dismissing a petition challenging the restoration of a vendor's liquor license, Justice Yashwant Varma stated in his order,"It becomes pertinent to note that the grant of license under the Act and Rules framed thereunder is not subject to “public sentiment”...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.".The Court was hearing a petition filed by the Deputy Commissioner of Excise challenging a 2019 order passed by the Financial Commissioner which restored the liquor license of the owners of 2 Bandits, a bar located near Delhi University's South Campus.It was noted that in 2018, the license in question was cancelled by the Department of Excise on the grounds that "public sentiment" was opposed to the location of the liquor vend and that there was an "apprehension of law and order.".Before the High Court, the Excise Department had contended that it had the power to cancel a license granted "for any reason whatsoever." Taking a dim view of this submission, the 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. 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..."Moreover, it was held that concerns regarding the apprehension of a law and order situation would be looked into by the police, and that the Department must categorically prove that the license of the liquor vend has fallen foul of any statutory provisions.It further held,"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."On these terms, the Court dismissed the petitions challenging the restoration of the liquor license..Advocates Abhinav Sharma and Swati Bansal appeared on behalf of the Deputy Commissioner Excise..[Read order] :