In a major relief to Hauz Khas Social, the Delhi High Court while flagging the notice issued by the excise department as misconceived held that liquor service cannot be halted amid valid eating house registration.
The bench of Justice Sachin Datta has observed that theDelhi Eating House, Registration Regulations, 2023, the registration already granted to the petitioner shall enure, till the renewal certificate is issued or till an intimation of refusal, the direction contained in the SCN-cum-order issued by the excise department, requiring the petitioner restaurant-cum-bar to “cease the Operation of Service of Liquor”, is ex-facie misconceived.
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.
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 Department of Excise during the inspection at the petitioner’s premises 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.
The petitioner holds L-17 and L-17F licences for “Service of Indian Liquor and Foreign Liquor in independent restaurants”. 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.
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 the petitioner has been pursuing for renewal ever since.
The petitioner contended that it has a liquor license which is valid till 30.06.2025. The only reason on the basis of which the respondent no.1 has directed the petitioner to put on hold the selling of liquor is non-production of a valid Eating House Certificate/ License. It is untenable inasmuch an Eating House Certificate/ License has been validly issued in favour of the petitioner and only its renewal is under process.
The court issued various direction.
Firstly, in terms of para-6(ii) of the Delhi Eating Houses, Registration Regulations, 2023, the petitioner‟s premises shall be deemed to be duly registered thereunder, until its registration certificate is duly renewed and delivered OR till an intimation is send by the respondent no.2 that renewal has been refused.
Secondly, the Licensing Unit of Delhi Police is directed to process the petitioner’s application for renewal of Registration / licence under the Delhi Eating House, Registration Regulations, 2023 and take a decision, as expeditiously as possible, and preferably within a period of two weeks from today.
Thirdly, the direction contained in the SCN-cum-order dated 08.04.2025, issued by theexcise department, to the extent it directs that the petitioner shall cease operation of service of liquor from its restaurant, is stayed till adjudication of the said SCN. The petitioner shall duly respond to the SCN-cum-order dated 08.04.2025 within the time granted thereunder. The same shall be duly adjudicated by the concerned licensing authority.
Lastly, the licensing authority shall take into account the provision/s of para-6(ii) of the Delhi Eating House, Registration Regulations, 2023 and the outcome of the petitioner‟s application seeking renewal under the said Regulations.
Case Details
Case Title: Epiphany Hospitality Pvt Ltd Versus The Commissioner Excise Entertainment And Luxury Tax
Case No.: W.P.(C) 4518/2025 and CM APPL.20895/2025 (Stay)
Date: 09.04.2025
Counsel For Petitioner: Shyel Trehan (Sr. Adv) along with Mr. Raghav Anand, Mr. Shubham Kathuria, Ms. Vidhi Jain, Mr. Suhail Ahmed
Counsel For Respondent: Satender Sangwan (ACP) along with Mr. Mukesh Rana (Inspector) and Mr. M. Singh (SI)
