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2026 Supreme(Raj) 389

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
FARJAND ALI, CHANDRA SHEKHAR SHARMA, JJ.
Shakti W/o Shri Raman - Appellant
Versus
The State Of Rajasthan, Through The Principal Secretary, Excise Department - Respondent
D.B. Spl. Appl. Writ No. 401 of 2026
Decided On : 07-04-2026

Advocates Appeared:
For the Appellant : Mr. Himmat Jaga, Ms. Taniya Chugh
For the Respondent: Mr. Mahaveer Bishnoi AAG assisted by Ms. Navya Sharma, Mr. P.K. Rawla

Appellate courts should exercise judicial restraint and refuse to entertain appeals against discretionary interim orders when the substantive issues are currently sub judice before the court of first instance, ensuring the sanctity of the hierarchical adjudicatory process is maintained.

Headnote:(A) Administrative Law - Excise Licensing - Renewal of license - Denial of renewal due to alleged outstanding dues - Scope of intra-court appeal - Appellate court is not to substitute its view for that of the court of first instance in interim or discretionary matters unless the order is shown to be patently illegal, perverse, or suffering from jurisdictional error - Judicial propriety requires that where a matter is sub judice and being actively adjudicated by the primary forum, the appellate court should exercise restraint to prevent pre-empting the ongoing proceedings - Doctrine of judicial restraint mandates allowing the original forum to complete its adjudicatory process. (Paras 6.3, 6.4, 6.5, 6.12)

(B) Appeals - Scope and ambit - Interference with interim orders - Jurisdiction of divisional bench is circumscribed - Where the lower court has exercised discretion to balance competing interests through an interim order, such decision remains within the realm of original adjudication and should not be disturbed unless it is found to be manifestly arbitrary - Premature adjudication by an appellate body, which substantially forecloses or stifles proceedings before the original forum, is procedurally impermissible. (Paras 6.6, 6.10, 6.13)

Facts of the case:
The appellant approached the appellate court challenging the denial of license renewal and the subsequent allotment of a shop to a third party, attributing the underlying arrears to technical failures in the electronic system. The appellant had previously initiated proceedings in the court of first instance, which had granted interim protection with respect to specific demands and directed that subsequent allotments remain subject to the final outcome of the pending writ petitions.

Findings of Court:
The court observed that the core issues, including the legality of the demand, the impact of technical system failures, and the propriety of the license renewal denial, were already subject to ongoing adjudication in pending writ petitions. The court held that the lower court had appropriately exercised its discretion by ensuring the rights of the parties were protected via an interim arrangement, and that further intervention at the appellate stage would effectively pre-judge the merits of the case.

Issues: Whether the appellate court should interfere with discretionary interim orders of the lower court while the substantive merits of the controversy are currently sub judice before that same lower court.

Ratio Decidendi: An appellate court must adhere to the principles of institutional discipline and judicial propriety by refraining from premature adjudication on merits when the court of first instance is already actively seized of the matter, particularly where that court has put in place a balanced interim arrangement to preserve the rights of the parties pending final disposal.

Result: Appeal dismissed.

Table of Content
1. factual context of license renewal dispute. (Para 1 , 2)
2. parties' conflicting contentions regarding procedural defaults and renewal rights. (Para 3 , 4)
3. appellate courts should practice restraint when matters are sub-judice. (Para 5 , 6 , 7)
4. dismissal of appeal with liberty to pursue remedy. (Para 8 , 9)

ORDER :

FARJAND ALI, J.

Grievance of the Case

1. The instant Civil Special Appeal (Writ) has been instituted by the appellant assailing the proceedings arising out of denial of renewal of excise licence and the consequential allotment of the shop in question in favour of respondent No. 4.

Factual Background

2. The appellant is an excise licensee holding Shop Code No. 1306051 for Wards No. 3, 4, 5, 8, 10, 11 and 12 of Padampur. It is averred that due to technical glitches in the server maintained by the Excise Department, several licensees, including the appellant, were unable to fulfill the guarantee requirements for the month of September, 2025.

2.1. Despite absence of any attributable fault, the respondents, vide order dated 30.10.2025, sought to impose a penal condition requiring such licensees to lift 1.5 times the quantity of liquor equivalent to the alleged deficiency.

2.2. Aggrieved thereby, the appellant preferred S.B. Civil Writ Petition No. 23713/2025 (Shakti vs. State of Rajasthan & Ors.), wherein a Coordinate Bench of this Court, vide order dated 06.12.2025, issued notices and restrained the respondents from taking coercive action.

2.3. Subsequently, the appellant attempted renewal of the licence on multiple occasions in February, 2026; however, the system declined renewal citing outstanding dues, which were fluctuating and inconsistent in nature.

2.4. In the interregnum, the respondents proceeded to entertain applications for allotment and, vide proceedings dated 17.02.2026, allotted the shop in question in favour of respondent No. 4. Aggrieved by the said subsequent development, the appellant instituted S.B. Civil Writ Petition No. 6202/2026 along with a stay application. In the said proceedings, the learned Single Judge, vide order dated 24.03.2026, while issuing notice as well as notice of the stay application and granting time to the respondents to file reply, directed that the allotment so made shall remain subject to the final outcome of the writ petition, thereby keeping the rights and contentions of the parties open for adjudication.

Submissions on Behalf of the Appellant

3. Learned counsel for the appellant submits that the alleged default for September, 2025 arose solely due to technical glitches in the Excise Department’s server, and no fault can be attributed to the appellant. Despite this, the respondents imposed an onerous and arbitrary condition vide order dated 30.10.2025, compelling licensees to lift 1.5 times the liquor quantity.

3.1. It is contended that this action was challenged in S.B. Civil Writ Petition No. 23713/2025, wherein this Court, vide order dated06.12.2025, granted protection against coercive action. The respondents, however, have indirectly defeated the said protection by denying renewal of licence.

3.2. Counsel further submits that the appellant made bona fide attempts to renew the licence within time, but the same was declined due to fluctuating and inconsistent demands reflected in the system, demonstrating arbitrariness.

3.3. It is also urged that despite being informed of the interim order, the respondents insisted upon deposit of the disputed amount. The subsequent allotment in favour of respondent No. 4, during pendency of the writ petition, is stated to be illegal and prejudicial to the appellant’s rights.

Submissions on Behalf of the Respondents

4. Per contra, learned counsel for the respondents submits that the interim protection granted by this Court was limited only to the dues of September, 2025 and did not extend to subsequent defaults.

4.1. It is contended that the appellant remained in continuous arrears for later periods, and despite notice dated 04.12.2025

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