Before the High Court, the Excise Department had contended that it had the power to cancel a license granted “for any reason whatsoever.” Taking a dim view of this submission, the Court stated,
“The Court finds itself unable to countenance that submission since undisputedly the Department acting as a public authority is obliged to act fairly and surely not whimsically. The expression “for any reason whatsoever” cannot be recognised as empowering the respondent to cancel a license on grounds which are not contemplated under the Act. The provisions of Section 16 cannot be viewed as granting the Department of Excise a carte blanche to cancel a license validly granted in terms of the provisions of the Act and Rules…”
Moreover, it was held that concerns regarding the apprehension of a law and order situation would be looked into by the police, and that the Department must categorically prove that the license of the liquor vend has fallen foul of any statutory provisions.
It further held,
“While the Court is aware that principles of res extra commercium apply to trade in liquor, that would not justify the cancellation of a license validly granted and which is not established to be in violation of the law.”
On these terms, the Court dismissed the petitions challenging the restoration of the liquor license.
Source: Barandbench
