IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Gannamaneni Ramakrishna Prasad, J.
Botta Lakshmi Pavani, D/O. Venkateswara Rao - Petitioner
Versus
The State Of Andhra Pradesh, (Excise-Ll) Revenue Department And Ors. – Respondents
Writ Petition No: 19812 of 2024
Decided On : 23-09-2024
Natural Justice - Writ Petition - Andhra Pradesh Excise Act, 1968, Section 31 - The court emphasized the necessity of providing reasons for administrative orders and adherence to natural justice principles, concluding that the suspension order lacked a specified duration, thus requiring a final determination within a stipulated time frame.
Fact of the Case:
The petitioner, granted a bar license, faced suspension due to alleged violations of license conditions. The Deputy Commissioner issued a suspension order without specifying its duration, leading to a writ petition challenging the legality of the order.
Finding of the Court:
The court found that the suspension order was issued without adequate reasoning and did not specify a duration, violating principles of natural justice. However, it concluded that the order was not vitiated by reliance on a subsequent report.
Issues: Whether the suspension order violated principles of natural justice by lacking reasons and a specified duration, and whether the reliance on a subsequent report was appropriate.
Ratio Decidendi: The court held that administrative orders must be supported by reasons and that the absence of a specified duration in a suspension order renders it indefensible, necessitating a final order within a set timeframe.
Result: The writ petition is dismissed, but the authorities are directed to issue a final order regarding the suspension within three weeks.
ORDER:
Gannamaneni Ramakrishna Prasad, J.
Heard Sri O. Manohar Reddy, Learned Senior Counsel brief by M/s. OMR Law Firm and Sri Y. Balaji, Learned Government Pleader assisted by Sri K. Arjun Chowdhary, Learned Assistant Government Pleader for Prohibition and Excise. In view of the urgency expressed by the Learned Senior Counsel, with the consent of both the parties, this matter is taken-up for final hearing at the admission stage itself.
2. The prayer sought in the present Writ Petition is as follows:
3. The facts as emerged from the Affidavit filed in support of the Writ Petition are that the Writ Petitioner herein was granted a Form-2B License to run a Bar & Restaurant under the provisions of the Andhra Pradesh Excise (Lease of Right of Selling by Bar, Grant and Conditions of License) Rules, 2022 in the name and style of M/s. Island Bistro Bar and Restaurant in East Point Colony, Beach Road, Visakhapatnam aka QUBBAA PUB. It is further stated in the Affidavit that the Deputy Commissioner of Prohibition and Excise (Respondent No.3) has issued Show Cause Notice bearing Rc.No.313/2022/B2, dated 20.08.2024 (Ex.P.2), in which, it is alleged that the District Prohibition and Excise Officer, Visakhapatnam has submitted a Report stating that the Inspector of Police, III town Police Station has submitted a Report stating that on reliable information, on 17.08.2024 night, the Joint Commissioner of Police, Visakhapatnam City conducted a surprise raid on the premises and found that the Bar & Restaurant run by the Writ Petitioner was conducting its business beyond the business hours which is in violation of the terms and conditions of license. It is also pointed out that the Report of the Joint Commissioner of Police indicated certain other irregularities. The Respondent No.3 issued Show Cause Notice on 20.08.2024 (Ex.P.2) to the Writ Petitioner. The Writ Petitioner has submitted detailed Explanation on 04.09.2024 (Ex.P.3). Being dissatisfied with the Explanation submitted by the Writ Petitioner, the impugned Proceedings came to be passed by the Respondent No.3 suspending the license of M/s. Island Bistro Bar and Restaurant with immediate effect vide Order dated 06.09.2024 (Ex.P.1).
4. It transpires from the impugned Order that the Respondent No.3 had considered three incidents as the reason for passing the impugned Order and such reasons are as under:
| i. | 1st incident | 16.03.2024 | Crime No.55/2024 under Section 353 IPC; |
| ii. | 2nd incident | 23.06.2024 | Crime No.157/2024 under Section 188 IPC; and, |
| iii. | 3rd incident | 19.08.2024 | Crime No.184/2024 under Section 31(1)(b) of the Andhra Pradesh Excise (Lease of Right of Selling by Bar, Grant and Conditions of License) Rules, 2022. |
5. Sri O. Manohar Reddy, Learned Senior Counsel has assailed the Order of Suspension dated 06.09.2024 (Ex.P.1), essentially, on the following three grounds:
b. That the impugned Order is perverse inasmuch as the impugned Order does not prescribe the period of suspension and therefore, it is in the nature of revocation of license which is in the guise of a Suspension Order for an indefinite period of time; and,
c. That the Deputy Commissio
Amar Chandra Chakraborthy Vs. The Collector of Excise, Government of Tripura and Ors
Madhya Pradesh Industries Limited Vs. Union of India and Others
Maharashtra State Financial Corporation Vs. M/s Suvarna Board Mills and Another
Managing Director, ECIL, Hyderabad and Others Vs. B. Karunakar and Others
Administrative orders must provide clear reasoning and specify durations to comply with natural justice principles, ensuring transparency and fairness.
Suspension of a bar licence without disclosing relevant materials and failing to specify a duration violates principles of natural justice, rendering the order unsustainable.
The cancellation of a license under the Odisha Excise Act, 2008 without providing reasonable notice or opportunity to be heard violates the principles of natural justice, rendering the order invalid.
Suspension of bar license declared illegal due to lack of reasons and violation of natural justice principles.
Point of Law : For want of the inspection report before this Court, it cannot be presumed that the substance of the inspection report or the summary of the documents was furnished and that the summar....
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