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IN THE HIGH COURT OF ORISSA AT CUTTACK
ARINDAM SINHA, ACJ, M.S.SAHOO
Galaxy Bar and Restaurant, Nayagarh – Appellant
Versus
State of Odisha – Respondent
| Table of Content |
|---|
| 1. petitioner's application for liquor license rejected. (Para 1 , 2) |
| 2. court notes contentions regarding license application. (Para 3) |
| 3. discussion on implications of the excise policy. (Para 4 , 5 , 6) |
| 4. rule 51 allows restaurant licenses. (Para 7) |
| 5. state's decision basis questioned for arbitrariness. (Para 8 , 9) |
| 6. objections from other parties analyzed. (Para 10) |
| 7. rejection order quashed; license to be issued. (Para 11) |
| 8. writ petition allowed and disposed. (Para 12) |
JUDGMENT :
1. The writ petition was moved before us on 29th October, 2024. Mr. Kar, learned senior advocate appearing on behalf of petitioner had submitted, impugned is order dated 29th April, 2024 made by the Principal Secretary to Government, Excise Department rejecting his client’s application for issue of licence to operate ‘ON’ shop in his restaurant at Nayagarh town. This is his client’s third writ petition.
3. We had recorded our prima facie appreciation in order dated 29th October, 2024, made upon the petition moved. Paragraphs-4 to 6 from said order are reproduced below.
5. Second contention is, application of petitioner is without lodging category, which violates clause of the excise policy
The court ruled that the rejection of a liquor license application based on arbitrary policy distinctions lacks reasonable grounding and does not adequately consider public interest.
The State Government cannot relax excise policy restrictions on shifting liquor shops outside designated areas, as it contravenes established law requiring public notification.
A validly enacted law cannot be challenged on the grounds of hardship; the provisions apply uniformly, and existing licenses are not affected by new distance requirements.
The court upheld the validity of the Liquor Policy prohibiting public servants from holding liquor licences, affirming the State's authority to impose such conditions in public interest.
Point of law : Owner of cinema house cannot challenge the setting up of a new cinema house because it does not result in injury to a legal right or legally protected interest, the business competitio....
There is no fundamental right to trade in liquor; state policies can modify licensing rights as long as they comply with statutory provisions.
Compliance with procedural requirements under the Odisha Excise Rules is necessary for the lawful shifting of liquor licenses, and pleadings must be specific to raise valid legal objections.
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.
Seeking cancellation of licence of - To obtain/get a licence of IMFL is not a matter of right.
Contractual obligations under the Excise Policy cannot be challenged in writ jurisdiction if entered knowingly, and the state has a duty to regulate liquor quality.
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