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Court Judgment

Bombay High Court 03 Sep 2021
Source
M/S. National Restaurant Association ... vs The Commissioner State Excise And Ors on 3 September, 2021
Bench Principal Seat
Tags fl-iii
Analysis pending · Full text available
विश्लेषण प्रलंबित — पूर्ण मजकूर खाली उपलब्ध आहे. The AI-generated summary and rule-linking for this judgment is queued; the full text is below.
Full Text
39-3374-2021.doc

 Shailaja

 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
 CIVIL APPELLATE JURISDICTION
 WRIT PETITION NO.3374 OF 2021

 M/s. National Restaurant Association ]
 of India ] Petitioner
 Vs.
 The Commissioner State Excise and others ] Respondents
 .....
 Mr. Vishal Thadhani i/b Mrs. Veena Thadhani, for Petitioner.
 Mr. V. S. Gokhale, 'B' Panel, AGP, for Respondent-State.
 ...
 CORAM : K.K. TATED &
 PRITHVIRAJ K. CHAVAN, JJ.

 DATE : 3 rd September, 2021

 P.C.

 1. The petitioner an Association representing members of Hotel
 and Restaurant Industry has filed instant petition challenging the
 Notification dated 28th January, 2021 issued by respective
 respondents demanding payment of licence fees for renewal of FL-
 III licences despite there being complete lock down and suspension
 of licenced activities on account of Covid-19 pandemic, inter alia,
 seeking quashing and setting aside the said Notification.

 2. Briefly stated facts are as follows;

 Digitally signed by
SHAILAJA SHAILAJA SHRIKANT
SHRIKANT HALKUDE

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 Date: 2021.09.09
HALKUDE 14:36:43 +0530
 39-3374-2021.doc

3. The petitioners are the members of an association holding
hotel licence in the form of FL-III for the purpose of serving liquor
in their premises under the provisions of Maharashtra Foreign
Liquor Rules, 1953.

4. FL-III licences are renewed annually from 1st April of each
year till 31st March of the following year after annual renewal fees
are paid by the licence holders. It is contended that the licence
holders have a bona fide and legitimate expectation that they will
be allowed to carry on their business for entire 12 months licence
period every day between 11.30 a.m and 1.30 a.m.

5. Due to the situation of Covid-19 pandemic, Government of
India as well as State Government imposed a complete lock down
across the country mid March, 2020; pursuant to which, the
restaurants and bars were closed. Subsequently, they were allowed
to operate only at 50% of their actual capacity. Timings and hours
of operation of restaurants and bars were also curtailed. In the
financial year 2020-2021, restaurants and bars operated only for a
period of five months, that too, with severe restrictions. It is
further contended that respondent No.1 permitted payment of
licence fees on installment basis i.e 25% by 30 th June, 2020, 25%
by 30th September, 2020 and balance 50% by 31 st December, 2020.
A circular came to be issued by respondent No.1 on 13 th April,
2020 that the licence fees have been reduced to the rates
applicable to the financial year 2019-2020.

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6. From 1st April, 2021 FL-III licencees have not been permitted
to freely carry on their business for which licence fee is demanded
and the restrictive measures continued to be imposed by the State
of Maharashtra by it's Notification dated 4 th April, 2021 which
came to be extended from time to time.

7. The petitioner members' business has been completely shut
down with effect from 22nd March, 2020 and there is no clarity as
to when imposed restrictions will actually come to an end.

8. Learned Counsel for the petitioner has drawn our attention
to the ad-interim relief granted by this Court in Writ Petition [L]
No.11021 of 2021 on 13th May, 2021 which reads thus;
 ". Heard.

 2. By this Interim Application, Applicants
 original petitioners are seeking permission to
 comply the order dated 06.05.2021 passed by this
 court in Writ Petition (L) No.11021 of 2021 by
 depositing the amount online with Respondent
 Excise Department.

 3. The learned counsel for the Applicants
 submits that this court by order dated 06.05.2021
 directed Petitioners to deposit 50% amount due
 and payable by the Applicants to the Respondents
 by 13.05.2021 with the Prothonotary and Senior
 Master. He relies on paragraph 3 and 4 of the said
 order which reads thus:

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 39-3374-2021.doc

 "3. In the circumstances, by way of ad-
 interim relief we only direct that in the
 event the members of Petitioner
 Association deposit 50% of the license
 fees in this court within one week from
 today, the representations of the
 Petitioner Association at Exhibits - N and
 O (page Nos. 146 and 147 of the Writ
 Petition) be decided on or before 31st
 May, 2021.

 4. We record the statement of learned
 Senior Counsel for the Petitioners that the
 list of members of the Petitioner's
 Association shall be filed on 10.05.2021 and
 a copy thereof shall be forwarded to the
 office of the Govt. Pleader on 10.05.2021
 itself. The list of members who have
 deposited 50% of the license fees in this
 court shall be communicated by the
 Advocate of the Petitioners to the office of
 the Govt. Pleader by 17th May, 2020 with
 proof of payment."

4. The learned counsel for the Applicants submits
that Petitioners members are from different parts of
State of Maharashtra. Therefore, it is very difficult for
them to collect Demand Draft from each and every
member. He submits that hence, the Applicants decided
to deposit entire amount online as provided by the

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 39-3374-2021.doc

Respondents in their Circular dated 23.02.2021. He
further submits that Applicants undertakes to provide
list of members on whose behalf they are depositing
the said amount with details i.e. License No., name of
the license holder, their address and how much amount
they are depositing on behalf of each member to the
office of the Government Pleader immediately. He
submits that in the interest of Justice, this Hon'ble
Court be pleased to allow the present Application. He
submits that if Application is not allowed, irreparable
loss and injury will be caused to the Applicant.

5. On the other hand, the learned A.G.P. for the
Respondents vehemently opposed the present
Application. He submits that as per the order dated
06.05.2021 the last date to deposit 50% amount was
today i.e. 13.05.2021. He further submits that
Applicant has not provided the detailed list of their
members showing their particulars till today.
Therefore, it is very difficult for them to ascertain
which member is going to pay how much in respect of
which license. Therefore, there is no question of
entertaining the present Application.

6. The learned G.P. for the Respondent submits that if
this court comes to the conclusion that, Applicants
have made out a case for extension of time, in that
case, time to decide the Applicant's representation
should be extended from 31.05.2021 to 07.06.2021.

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 39-3374-2021.doc

7. We have heard both the sides.

8. It is to be noted that in the present Application
Applicant members are scattered all over Maharashtra
and to collect Demand Draft from each and every
person during this COVID-19 and lock down period is
very difficult. Therefore, we are of the opinion that
Application is required to be allowed. Hence, the
following order is passed:
 a. Applicants are permitted to deposit the
 amount as per earlier order dated 06.05.2021 in
 Writ Petition (L) No.11021 of 2021 with
 Respondent Excise Department online as
 provided in Circular dated 23.02.2021 on or
 before 21.05.2021, failing which present
 Application shall stand dismissed without
 referring back to the court.

 b. Applicants are also directed to provide list of
 their members along with license number, their
 address and how much amount they are
 depositing to the office of the Government
 Pleader immediately on or before 21.05.2021.

 c. Time to decide the Applicant's representation
 as per paragraph 3 of the impugned order is
 extended till 07.06.2021.

 d. With these directions, Application stands
 disposed of.

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 39-3374-2021.doc

 3. No order as to costs.

9. Learned A.G.P in his reply on affidavit states that this Court by
an order dated 23rd June, 2021 directed the petitioner to deposit 50%
of the licence fee for the year 2021-2022 as per Notification dated 28 th
January, 2021 and to submit the list of members of the petitioner to the
respondents. He further submits that about 90% FL-III licensees in the
State of Maharashtra have paid entire licence fees for the year 2021-
2022 for renewal of their FL-III licence. Thus, concession given by this
Court to the petitioner members' for depositing 50% of licencee has
caused loss to the Government revenue.

10. It is stated that the licencees who have paid 100% of the licence
fee for the year 2021-2022 for renewal of the licence are also facing the
same financial crisis and difficulties as the petitioner members in this
Covid-19 situation. It is stated that liquor being a non essential
commodity, this Court ought not to have granted any relief to the
petitioner.

11. Having considered the respective submissions at bar and in view
of the view taken by this Court in Writ Petition [L] No.11021 of 2021,
following order is expedient.

 :ORDER:
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