Can’t cancel liquor vend licence over public sentiment, rules HC

“The apprehension of a law and order situation is clearly a different issue altogether which must necessarily be looked into by the police authorities concerned. Unless the licence 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,” said Justice Varma in the judgment.

The court further said that public opinion or sentiment is not germane under the Act for locating a liquor vend. “While the court is aware that principles of res extra commercium (outside commerce) apply to trade in liquor, that would not justify the cancellation of a licence validly granted and which is not established to be in violation of the law,” said the bench.

Defending its order of January 2018 against the restaurant, the Department of Excise in its petition had argued that Section 16 of the Act confers ample power on the competent authority to cancel a licence granted “for any reason whatsoever”.

However, the court said a department acting as a public authority is obliged to act fairly and not whimsically. “The expression ‘for any reason whatsoever’ cannot be recognised as empowering the respondent to cancel a licence 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 licence validly granted… on a ground which may not be legally sustainable or not contemplated under the Act,” reads the judgment.