Striker Beverages' Inadvertent Error: Delhi High Court Quashes Excise FIR, Imposes Rs 2 Lakh Cost

In a significant ruling, the Delhi High Court has quashed an FIR registered under Section 33 of the Delhi Excise Act, 2009 against Striker Beverages Pvt. Ltd. and another, for serving liquor without a valid permit during a soft launch party at Soul Club in Hotel Ashoka. Justice Saurabh Banerjee, presiding over the matter, observed that the omission to obtain a daily permit for the event on September 11, 2019, was a sheer typographical error with no ulterior motive. However, the court imposed a cost of Rs 2 lakh, to be deposited equally with the Delhi High Court Staff Welfare Fund and the Delhi High Court Bar Association Lawyers Social Security and Welfare Fund.

A Soft Launch, a Missing Permit, and an FIR

The case stemmed from a raid conducted on September 12, 2019, at Soul Club in Hotel Ashoka, Chanakyapuri, following secret information that liquor was being served without a valid license. During the raid, which coincided with a soft launch party attended by around 40–50 people, authorities recovered large quantities of used and sealed liquor bottles. The owner, Ankit Khilwani, and manager, Malay Kumar Rout, were arrested on the spot and later released on bail.

Investigation revealed that Striker Beverages, the petitioner company, had applied for three P-10A permits on September 10, 2019—one for an event on September 13 at Soul Club for 750 guests, and two for events on September 14 at Soul Club and SOHO Nation. Critically, no permit was applied for September 11, the date of the soft launch. A chargesheet under Section 33 of the Delhi Excise Act was filed on March 31, 2022, prompting the company to seek quashing of the FIR under Section 482 of the Code of Criminal Procedure.

Typographical Error or Genuine Mistake? Court Weighs In

The petitioners argued that the absence of a permit for September 11 was an inadvertent error. They had intended to apply for a daily permit for that date but mistakenly omitted it while applying for the other dates. Notably, the company already held a valid yearly license for SOHO Nation, issued on March 25, 2019, and valid until September 30, 2019. They further highlighted that they had already paid 50% of the penalty—amounting to Rs 10,62,937—pursuant to a June 3, 2020 order from the Deputy Commissioner of Excise. The Additional Public Prosecutor, after reviewing the facts, had no objection to the quashing.

Justice Banerjee found the explanation credible. The judgment noted: “What entails therefrom is that there is sheer mistaken and inadvertent (typographical) error on their part with no ulterior motive as they actually never missed out on applying for the valid license for the soft launch party on 11.09.2019.” The court also underscored the petitioners’ conduct in paying the penalty, stating: “Moreover, the petitioners have already paid 50% penalty amounting to Rs.10,62,937/- pursuant to the order dated 03.06.2020 passed by the Deputy Commissioner/ Licensing Authority, also shows their conduct.”

Justice with a Price Tag: Rs 2 Lakh Cost Imposed

While quashing FIR No.100/2019 and all proceedings emanating from it, the court made the relief conditional. The petitioners must deposit Rs 1 lakh with the Delhi High Court Staff Welfare Fund and another Rs 1 lakh with the Delhi High Court Bar Association Lawyers Social Security and Welfare Fund within two weeks. Proof of deposit must be submitted within a week thereafter; failure to comply will result in the matter being listed again. With this, the petition was disposed of.

The ruling underscores the judiciary's willingness to correct genuine clerical errors in compliance with regulatory laws, especially when the accused has demonstrated good faith by voluntarily paying penalties and when the prosecution raises no objection.