Delhi HC temporarily lifts Liquor Sale Ban at Hauz Khas Social by Excise Dept [Read Order]

In a significant relief to Hauz Khas Social, the Delhi High Court held that liquor service at the establishment cannot be suspended as long as it holds a valid eating house registration. The Court also flagged the notice issued by the Excise Department as legally misconceived.

Justice Sachin Datta, presiding over the matter, observed that under paragraph 6(ii) of the Delhi Eating House Registration Regulations, 2023, a validly issued registration continues to be effective until it is either renewed or formally refused. In this light, the Court found the direction in the Excise Department’s show cause notice-cum-order—requiring the petitioner to cease the sale of liquor—prima facie misconceived.

GST Ready Referencer – Practical Guide for Professionals Click here

The case was filed by Epiphany Hospitality Pvt. Ltd., which operates the restaurant-cum-bar Hauz Khas Social under the trade name M/s Social and Tinur. The petition challenged a sudden disruption of operations on the evening of April 3, 2025, when Excise Department officials visited the premises and directed the manager to suspend liquor service, citing the absence of a valid eating house license.

The petitioner submitted that it holds valid L-17 and L-17F licenses, permitting the service of Indian and foreign liquor in independent restaurants. These licenses, initially valid from March 27, 2023 to March 31, 2025, had been extended until June 30, 2025, via Excise Department Circular No. Exc-HCR/2/2025-HCR-Excise/4167-4171 dated March 26, 2025.

GST Judicial Precedents Click here

Regarding the Eating House Registration, the petitioner argued that it had encountered repeated administrative delays from Respondent No. 2, the Licensing Unit of the Delhi Police, despite having submitted all required documents. The petitioner’s license was valid until March 31, 2024, and the renewal process has been pending since then.

The petitioner maintained that the suspension of liquor service was unjustified, given that a valid liquor license was in force until June 30, 2025, and that the only issue was the ongoing renewal process of the eating house registration, which was still pending—not refused.

The Court issued the directions for deemed continuation of registration, as per paragraph 6(ii) of the 2023 Regulations, the petitioner’s premises shall be deemed to be duly registered until a renewed certificate is issued or formal intimation of refusal is provided by the Licensing Unit.

Laws Relating to Wills, Nomination & Succession Click here

The Single Bench also directed the Licensing Unit of the Delhi Police to process and decide upon the petitioner’s application for renewal of the Eating House Registration expeditiously, preferably within two weeks.

The Delhi High Court also stayed the operation of the Excise Department’s direction—dated April 8, 2025—to suspend liquor service, until final adjudication of the said notice. The petitioner is required to respond to the SCN-cum-order within the stipulated time frame, and the licensing authority shall decide on it accordingly.

The licensing authority was also instructed to take into account paragraph 6(ii) of the Delhi Eating House Registration Regulations, 2023, as well as the outcome of the petitioner’s pending renewal application, while adjudicating the matter.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates