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2026 Supreme(Online)(Mad) 32112

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mohammed Shaffiq, J
U.Santhanam Pillai – Appellant
Versus
The Commissioner – Respondent
W.P. No.27809 of 2018



Advocates:
For the Appellants/Petitioners: N.R. Jasmine Padma
For the Respondents: V. Jeevagiridharan

A party cannot seek the renewal of a statutory license years after its expiry based on a misconception of judicial directions, as renewal must be sought within the timeframe prescribed by the relevant rules.

Headnote:The petitioner filed a writ petition under Article 226 of the Constitution of India seeking a writ of Mandamus to direct the respondents to accept an application for the renewal of an FL.3 License for a bar attached to a hotel. The petitioner had previously held a three-star classification and had renewed the license periodically until 2018. However, following a Supreme Court order banning liquor sales near highways and subsequent government instructions, the bar was closed. Although the Supreme Court later clarified that establishments within municipal areas were not prohibited, the petitioner failed to apply for renewal within the prescribed timeframe. The primary issue was whether the petitioner could seek renewal of the license after a significant delay. The court observed that under Rule 21 of the Tamil Nadu Liquor (License and Permit) Rules, 1981, renewal applications must be submitted in the prescribed format within one month prior to the expiry of the license. The court reasoned that the petitioner cannot take advantage of their own misconception regarding the Supreme Court's directions to maintain a request for renewal filed eight years after the license had expired. The writ petition stands disposed of with the above directions.

Table of Content
1. background of license renewal and the impact of the supreme court's highway liquor ban and subsequent clarifications. (Para 1 , 2 , 3 , 4)
2. requirement of timely application for license renewal under statutory rules and the effect of administrative delays. (Para 5 , 6 , 7)
3. denial of renewal due to excessive delay and the petitioner's misconception of law. (Para 8 , 9)

PRAYER:

Writ Petition filed under Article 226 of the Constitution of India praying for a writ of Mandamus directing the respondents to forthwith accept the application with necessary fee thereto for renewal of FL.3 License for the Bar attached to Hotel viz., The Rennaaissancce Grand Hotel, situated at No. 422, SIPCOT Phase II, Bangalore Main Road, Hosur, Krishnagiri District.

ORDER

The present writ petition is filed praying for a writ of Mandamus directing the respondents to accept the petitioner’s application for renewal of FL-3 License with regard to the Bar attached to petitioner’s Hotel.

2. It is submitted by the learned counsel for petitioner that petitioner was granted three-star classification by the Tourism and Development Department, Government of India, vide proceedings dated 19.01.2007 and that the same has been renewed periodically by the Regional Director (South) at Chennai. Petitioner is stated to have applied for FL.3 license vide application dated 27.02.2007 and the same was granted to the petitioner to run and maintain the bar in accordance with the Tamil Nadu Liquor (License and Permit) Rules, 1981. Petitioner had been periodically renewing the same from the year 2007 upto 2018. The last of the application for renewal was made by the petitioner apparently on 26.02.2017, on the basis of the same, sought renewal till 31.03.2018. While so, Supreme Court imposed ban on sale of liquor along and in proximity to the National and State Highways vide its order dated 15.12.2016 in Civil Appeal No.12164-12166 of 2016. Subsequent to the order of Supreme Court, Prohibition and Excise Department issued instructions vide letter dated 31.03.2017 in Letter No.P&E 2(4)/12740/2016 and consequently, petitioner's bar was directed to be closed.

3. It is further submitted by the learned counsel for the petitioner that the Supreme Court vide order dated 11.07.2017 had clarified the nature of the prohibition. The relevant portions of the same is extracted hereunder:

“The purpose of the directions contained in the order dated 15 December, 2016 is to deal with the sale of liquor along and in proximity of highways understood, which provide connectivity between cities, towns and villages. The order does not prohibit licensed establishments within municipal areas. This clarification shall govern other municipal areas as well. We have considered it appropriate to issue this clarification to set at rest any ambiguity and to obviate repeated recourse to IAs, before the Court”.

4. Pursuant to the above orders of clarification issued by the Supreme Court, G.O.Ms.No.32, Home, Prohibition and Excise (VI) Department dated 21.05.2018 came to be issued by the Prohibition and Excise Department clarifying the position.

5. Learned counsel for petitioner submitted that renewal applications is to be submitted online. Petitioner was denied access to the portal to submit its online application. It is further submitted by the learned counsel for petitioner that they may be granted access to the portal/site and permitted to submit an online application for license to run and maintain a bar, which admittedly had expired on 31.03.2018.

6. To the contrary, learned counsel appearing on behalf of respondents that nothing may survive in this writ petition for the following reasons:

a) He would submit that in terms of Rule 21 of the Tamil Nadu Liquor (License and Permit) Rules, 1981, renewal of license ought to be made in the prescribed format within a period of 1 month prior to the expiry of license Petitioner ought to have taken

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