Case Note & Summary
The petitioner, Ramarai Rammilan Rai, was a co-licensee of an eating house known as 'Missile Restaurant and Bar' in Goregaon, Mumbai, holding a license under Section 33(1)(w) & (y) of the Bombay Police Act, 1951. On 12 November 2009, at 23:05 hours, the Senior Inspector of Police, Social Service Branch, inspected the premises and found 13 lady waitresses making obscene gestures and being in close physical contact with customers, who were spraying currency notes on them. The petitioner and his co-licensee were not present; the establishment was being run by a manager and a cashier. Consequently, criminal offences were registered against the manager and cashier under Sections 33(w) read with 131 of the Bombay Police Act, 1951, but no offence was registered against the petitioner or his co-licensee. Separately, the Licensing Authority suspended the petitioner's license without issuing any show-cause notice or affording an opportunity of hearing. The petitioner challenged this suspension by way of a writ petition. The court held that the suspension order was passed in gross violation of principles of natural justice, as the petitioner was not given any notice or hearing before the suspension. The court also noted that the petitioner was not present at the time of the incident and no offence was registered against him, indicating that there was no material to connect him with the alleged acts. The court quashed the suspension order and directed the Licensing Authority to consider the matter afresh after giving the petitioner an opportunity of hearing, if deemed necessary. The court emphasized that the power to suspend a license must be exercised fairly and in accordance with law.
Headnote
A) Administrative Law - Principles of Natural Justice - Suspension of License - The suspension of a license without prior notice and opportunity of hearing is violative of principles of natural justice, especially when the licensee was not present at the time of the alleged incident and no offence was registered against him. (Paras 7-8) B) Bombay Police Act, 1951 - Section 33 - License Suspension - Vicarious Liability - A licensee cannot be held vicariously liable for acts of employees without proof of personal involvement or knowledge, and suspension of license without such proof is arbitrary and unsustainable. (Paras 7-8) C) Bombay Police Act, 1951 - Section 33 - Rules for Keeping Places of Public Entertainment in Greater Bombay, 1953 - Rule 8 - Suspension of License - The power to suspend a license under Rule 8 must be exercised in accordance with principles of natural justice, and failure to provide an opportunity of hearing renders the suspension order invalid. (Paras 7-8)
Issue of Consideration
Whether the suspension of the petitioner's eating house license without affording an opportunity of hearing and without establishing personal involvement of the licensee in the alleged obscene acts is valid in law.
Final Decision
The court quashed and set aside the suspension order dated 22.11.2010 passed by the Deputy Commissioner of Police, H.Q.I (Licensing Authority), Hotel Branch, Mumbai. The court directed the Licensing Authority to consider the matter afresh after giving the petitioner an opportunity of hearing, if deemed necessary. Rule made absolute accordingly.
Law Points
- Principles of natural justice
- vicarious liability
- suspension of license without notice
- opportunity of hearing
- Section 33 Bombay Police Act
- 1951
- Rules for Keeping Places of Public Entertainment in Greater Bombay
- 1953
