2025 Supreme(Online)(Del) 48615
IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision : 09.04.2025
W.P.(C) 4518/2025 and CM APPL.20895/2025 (Stay)
EPIPHANY HOSPITALITY PVT LTD .....Petitioner
Through: Ms. Shyel Trehan (Sr. Adv) along with Mr. Raghav Anand, Mr. Shubham Kathuria, Ms. Vidhi Jain, Mr. Suhail Ahmed, Advs.
versus
THE COMMISSIONER EXCISE ENTERTAINMENT AND LUXURY TAX DEPARTMENT GOVT OF NCT OF DELHI & ANR. .....Respondents
Through: Mr. Satender Sangwan (ACP) along with Mr. Mukesh Rana (Inspector) and Mr. M. Singh (SI) for Delhi Police.
CORAM: HON'BLE MR. JUSTICE SACHIN DATTA
SACHIN DATTA, J. (Oral)
1. The present petition has been filed by the petitioner, ‘Epiphany Hospitality Pvt. Ltd.‟, which operates a restaurant-cum-bar under the name and style of „M/s Social and Tinur‟, also known as „Hauz Khas Social‟, located at the First Floor of 9A, 12, T-12A, and Second Floor of 9A, 12, Hauz Khas Village, New Delhi-110016.
2. The petition has been filed on account of sudden disruption in the operations of the aforesaid restaurant-cum-bar of the petitioner in the evening of 03.04.2025. It is submitted that the respondent no.1 / Department of Excise, GNCTD, during the inspection at the petitioner‟s premises on 03.04.2025, issued a written direction to the manager of the petitioner‟s
restaurant to put on hold, the sale of liquor therefrom, for the reason that no valid “Eating House License” was available with the petitioner.
3. It is undisputed that the petitioner holds L-17 and L-17F license for “Service of Indian Liquor and Foreign Liquor in independent restaurant”. A copy of the license has been annexed to the present petition as „Annexure M‟. Although the license was originally issued on 27.03.2023 and was valid until 31.03.2025, its validity has since been extended until 30.06.2025, pursuant to Circular No. Exc-HCR/2/2025-HCR-Excise/4167-4171 dated 26.03.2025, issued by the Department of Excise, GNCTD.
4. With respect to the Eating House Registration/License, it is submitted that the petitioner has been facing repeated administrative obstacles from the respondent no. 2/the Licensing Unit of Delhi Police, in connection with the process for renewal of the same, despite the submission of complete documentation and compliance with all requisite conditions. The validity of the petitioner‟s Eating House Registration/License was till 31.3.2024 and the petitioner has been pursuing for renewal ever since.
5. It is submitted that instead of renewing the Eating House Registration/ License, on 06.02.2025, the petitioner received a Show Cause Notice dated 21.01.2025 from respondent no. 2, alleging (based on information from the Delhi Fire Service) that the petitioner‟s restaurant was illegally serving alcohol within 100 meters of a government school and village temples. The notice claimed that such actions on the part of the petitioner violated the provisions of Delhi Eating House Regulations, 2023. The said SCN called upon the petitioner to respond as to why its Eating House Registration Certificate not be cancelled. The relevant portion of the said SCN is reproduced as under –
“Whereas, a information was received from DFS on 09/07/2024 wherein It is mentioned that the above Eating Establishment illegally serving alcohol to clients with 100m from Govt. School & Village temples. This conduct of yours renders you a person not suitable to operate an Eating House and the premises not a fit place as required by general conditions imposed upon RC holder in pursuance to Delhi Eating Houses Registration Regulations-2023.
Whereas, Section 141 (2) of Delhi Police Act envisages that any license or written permission granted under this Act may any time be suspended or revoked by the competent authority if any of its conditions or restrictions are infringed or evaded by the person to whom it has been granted.
THEREFORE, I, B. Shanker Jaiswal, Joint Commissioner of Police, Licensing, Delhi, in exercise of powers conferred upon undersigned under the provisions of "Delhi Eating Houses Registration Regulations-2023" do hereby call upon you to Show Cause within 15 days from the date of receipt of this notice, as to why your Registration Certificate should not be cancelled for the above said acts of omission & commission. Your reply, if any, should reach this office within15 days, failing which it will be presumed that you have nothing to say in your defense and the decision will be taken ex-parte, on merits.”
6. The petitioner duly submitted a detailed reply to the said Show Cause Notice on 19.02.2025. It is submitted that after submission of the aforesaid reply t