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.

JUDGMENT :

B.R. SARANGI, ACJ.

1. The petitioner, by means of this writ petition, seeks to quash the letter dated 16.12.2021 under Annexure-6 issued by opposite party no.1- Secretary to Govt. of Odisha, Excise Department, Bhubaneswar in cancelling the license of South City IMFL Hotel ‘ON’ Shop at Bhagabanpur Industrial Area, Tamando in the district of Khurda for the year 2021-22 and further to issue direction to the opposite parties to consider renewal of the license of South City IMFL Hotel ‘ON’ shop for the current excise year.

2. The brief facts, which led to filing of this writ petition, are that the petitioner was issued with IMFL ‘ON’ shop license in respect of Hotel South City (with Lodging) on 07.04.2021 by opposite party no.4-Superintendent of Excise, Bhubaneswar with validity from 01.04.2021 to 30.04.2021 on payment of license fee of Rs.2,00,000/- through challans dated 06.04.2021 and the currency of the said license was extended up to 30.09.2021. Apart from that, the petitioner has also deposited license fee of Rs.3,00,000/ through chalans dated 09.09.2021 after adjustment of relaxation amount of Rs.2,25,000/-, which was deposited in the excise year 2020-21 towards license fee for the year 2021-22.

2.1. On 11.10.2021, opposite party no.5-IIC, Tamando P.S, Bhubaneswar wrote to opposite party no.4, by way of requisition, to take action against the petitioner alleging that the Bar used to remain open till late night, i.e., 3 AM to 4 AM or more, and that the Dance Bar Room is too small but the licensee is allowing huge congregation, which violated the terms and conditions of the license and the COVID guidelines. Basing on the alleged requisition, without making any enquiry to the said allegations by the concerned Inspector of Excise as well as opposite party no.4, a show cause notice was issued to the petitioner on 16.10.2021 by opposite party no.4, by order of opposite party no.3-Collector, Khurda, to submit an explanation within 7 days as to why her license shall not be cancelled for violation of license conditions and COVID Pandemic guidelines, failing which action shall be taken for cancellation of license, as per the provisions of law.

2.2. On 22.10.2021, S.I., Tamando P.S lodged an FIR alleging that he got an information that one employee of South City Hotel was illegally selling foreign liquor bottles to customers at the reception counter of the said Hotel. It was further alleged that owner of the Hotel, namely, Pradyumna Jena and his partners, including the petitioner, were running the Hotel till late hours of night violating guidelines and restrictions. The said FIR was registered for alleged commission of offences under Sections 269 /270 /168 /385 /506/ 120-B of the IPC read with Section 5 2 (a) of Odisha Excise Act, 2008, Section 96 of the Odisha Urban Police Act, 2003, Section 3 of Epidemic Diseases Act, 1897 and Section 5 of the Odisha Fire Works and Loud Speaker (Regulation) Act, 1958. As a consequence thereof, the husband of the petitioner, namely, Pradyumna Kumar Jena was arrested on 23.10.2021 and was released on bail, vide order dated 05.11.2021 passed by the learned Addl. Sessions Judge-cum-Spl. Judge, CBI II, Bhubaneswar.

2.3. Though the petitioner received show-cause notice on 18.10.2021, she could not file any reply within 7 days, as her only son was under treatment at Chennai because his liver was not functioning and her husband was arrested in connection with Tamando P.S Case No.221 of 2021 arising out of C.T. Case No.5865/2021 pen