The imposition of fines by a statutory authority must adhere to procedural due process, including prior notice; failure to do so contravenes principles of natural justice.

JUDGMENT :

DEVASHIS BARUAH, J.

1. Heard Mr. S. J. Sharma, the learned counsel appearing on behalf of the petitioners and Mr. S. Bora, the learned Standing counsel appearing on behalf of the respondent Nos. 1, 2 and 3.

2. The petitioners herein are aggrieved by the action on the part of the respondent authorities in forcefully realising an amount of Rs.1,50,000/- on the ground that the petitioners were running a business with an invalid trade license and serving hookah without trade license.

3. The materials on record show that the petitioners prior to the starting the business sought for a No Objection from the Commissioner, Guwahati Municipal Corporation to run the trade of hookah bar. The Commissioner, GMC issued a No Objection Certificate on 11.04.2019 in favour of the petitioners. One of the stipulations contained in the said No Objection Certificate is that the petitioners have to obtain a trade license.

4. The materials on record further show that on 20.05.2022, the petitioner No.1 hereinafter referred to as the petitioner firm was issued a trade license for running a restaurant having above 30 seats for the year up to 31.03.2023. It is further seen that the license fee was Rs.8,650/-. Subsequent thereto, for the year 2023-2024, the petitioner firm was issued another trade license on 18.04.2023 for running a restaurant having 30 seats. It is however pertinent to mention that the license fee mentioned in the said trade license was Rs.2,750/-.

5. At this stage, it is apposite to take note of certain developments after the petitioner firm obtained the No Objection Certificate dated 11.04.2019. The Commissioner, GMC had issued a notice dated 18.12.2020 to all concerned. In terms with the said notice, it was notified that all trades in respect to hookah bar operating within the city of Guwahati should be closed. Further to that, it was mentioned that there shall be no further renewal or issuance of trade license for hookah bar would be entertained by the Guwahati Municipal Corporation. This notification dated 18.12.2020 was put to challenge before this Court in WP(C) No.75/2021 and this Court taking into account the provisions of the Cigarettes and Other Tobacco Products, (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (hereinafter referred to as the ‘Act of 2003) as well as the Rules framed therein under passed a judgment and order on 18.02.2021. The notification dated 18.12.2020 though not interfered with as per the said judgment and order but appropriate directions were issued as to how a hookah bar can continue in the city of Guwahati. Paragraph Nos. 14 and 15 of the said judgment and order dated 18.02.2021 being relevant are reproduced herein under:

“14. After taking note of the submissions advanced by learned counsel for both the parties, this Court is of the opinion that it would not necessary for this Court to go into the question of legality and validity of the impugned notice in the present proceeding and therefore, the said issue is kept open for decision in an appropriate proceeding. As agreed to by learned counsel for the parties, I dispose of this writ petition by granting leave to the petitioners to submit proper applications with undertaking laying down the following points :-

(1) That they would not use the expression “Hookah Bar” in any form while operating their restaurants.

(2) Hookah or any other tobacco products would not be advertised in any form.

(3) The petitioners would strictly comply with the provisions of the Act of 2003 and the Rules framed thereunder, while operating their restaurants.

15. If such undertaking is furnished within th