Refusal of Refund of License fee to Model Shops due to Covid Restrictions are Prima Facia Arbitrary: Allahabad HC asks Explanation from Govt [Read Order]

The Allahabad High Court has held that refusal of refund of license fee to model shops due to covid restrictions are prima facia arbitrary and asks for an explanation from the government.

The petitioner, Nidhi Agarhari had applied for the license for a model shop within the limits of Civil Lines, and the petitioner under the allotment letter deposited license fees, and additional fees, and also submitted a security deposit.

Thereafter, for the issuance of the license of the model shop, the petitioner submitted the boundaries of the proposed shop and the seller’s name. On inspection, it was found to be located not within the limits of Civil Lines, the District Excise Officer asked the petitioner to submit boundaries of a new place for running the model shop, for approval. Instead of submitting the boundaries of a new place, the petitioner filed a Writ petition in which the High Court allowed the refund of the license fee and additional fee.

The petitioner filed a refund application before the department, which rejected the application on the ground that the petitioner has failed to arrange an appropriate place for running the model shop and, therefore, her application for refund/ remittance has no merit and is not legally maintainable. Aggrieved by the order the petitioner filed a Writ petition.

The High Court observed that the impugned order passed by the respondent is in breach of the findings recorded and the directions issued by the High Court and also completely and deliberately ignored the period of complete lock-down and also the fact that in model shops, the consumption on the premises is allowed along with the facility of taking snacks and the government has completely prohibited the activity of running restaurants, etc. for a major period of the financial year 2020-21 on account of Pandemic COVID-19.

The Coram of Mr. Justice Surya Prakash Kesarwani and Mr. Justice Chandra Kumar Rai while granting one more opportunity to the respondents to file a counter affidavit and held that the impugned order appears to be arbitrary and illegal.

Mr. Avanish Mishra appeared on behalf of the petitioner.

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