Point of Law: In exercise of power of judicial review, the concept of reasoned orders/actions has been enforced equally by foreign courts as by the courts in India. The administrative authority and tribunals are obliged to give reasons, absence whereof could render the order liable to judicial chastise

ORDER :

1. (Heard and pronounced through Blue Jeans App(virtual) mode, since this mode is adopted on account of prevalence of COVID-19 Pandemic).

2. The Writ Petition is filed seeking to declare the order of the 3rd respondent issued in R.C.No.189/A/2020 dated 22.04.2020 as illegal, arbitrary, violative of principles of natural justice, without jurisdiction and consequently direct the 3rd respondent to permit the petitioner to conduct the business and pass such other orders as deemed fit.

3. The facts relevant for disposal of the present case in brief, are as follows;

4. The petitioner is a Form 2B license holder to run a Bar and Restaurant as per the provisions of the A.P. Excise (Grant of License of Selling by Bar and Conditions of License) Rules, 2017 and he is conducting the business in the name and style of M/s.Eden Park Restaurant and Bar at Tirupathi, Chittoor District.

5. On the basis of a report of the Prohibition and Excise Superintendent dated 11.04.2020 that a physical verification of liquor stocks in the bar premises was conducted on 10.04.2020 and the ground stock was verified with reference to closing balance as on 21.03.2020 and that there are manipulations and over-writings in the figures in closing stock, a case was registered against the petitioner under Section 36 (b) and (c) of the A.P. Excise Act. Subsequently, the 3rd respondent issued a show cause notice dated 11.04.2020 to show cause as to why license granted to the petitioner shall not be suspended and seven days time from the date of receipt of the notice was granted for submitting the explanation. The petitioner submitted his explanation dated 19.04.2020 interaliacontending that issuance of show cause notice, giving seven days time for submission of explanation is contrary to law laid down in N. Mallareddy v. State of Andhra Pradesh 2004 (4) ALD 681, wherein the Hon’ble Court categorically held that a minimum period of 15 days time has to be granted to the licensee for submitting explanation and that in view of the same, the show cause notice dated 11.04.2020 granting seven days time itself is illegal. In the explanation, it is further stated that the power to register a case under Section 36(b) and (c) of the A.P. Excise Act would arise only if there is any willful omission or breach of any of the conditions of license or contravention of any rule under the Act and that in the show cause notice, contravention of any of the provisions of the Act or rules was alleged and that the notice was vague. In the explanation, it is stated that the bar premises was sealed by the Excise Department on 22.03.2020 and the same was opened on 14.04.2020 by the Excise Department and when the seals were intact and there is no allegation of tampering of any seals, merely because there was good business on 21.03.2020 itself cannot be a ground for issuance of show cause notice and that increase in the sales on the particular day is due to various factors and one of the factor being that the closure of the bar on the next day. It is further stated that increase in sales of liquor on a particular day compared to the earlier days cannot by itself be a ground to presume that there is violation or infraction of the provisions of the Act and the Rules made there-under. The petitioner while denying that they did not abide by the orders of the Collector, further stated that Excise Act does not empower the invocation of powers under Section 31 of A.P. Excise Act on assumptions. The petitioner also sought for personal hearing before passing any order.

6. The 3rd respondent on receipt of the said explanation passed the order dated 22.04.2020 impugned in the present Writ Petition suspending the license of the petitioner pending enquiry, holding that the Bar licensee and his nowkarnama holders have sold away most of the stocks of liquor that were available in the Bar at the time of closure i.e., during Janatha Curfew and followed by continuous lockdown period and have acted in a manner pre