Bombay High Court Allows Petition Challenging Cancellation of Eating House Licence for Violation of Natural Justice. Licence Cancelled Without Opportunity of Hearing Set Aside, Restoration Ordered.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Hotel Mahee through its proprietor Mrs. Bharati Sachin Jaiswal, challenged the order dated 26.8.2013 passed by respondent No.2/Tahsildar, Warud, cancelling the Eating House Licence granted in favour of the petitioner, and the order dated 3.3.2014 passed by respondent No.1/Collector, Amravati, dismissing the appeal. The petitioner contended that the Tahsildar cancelled the licence without giving any opportunity of hearing, violating principles of natural justice. The court noted that the Certificate of Registration of Eating House was valid until 31.12.2013. The Tahsildar claimed that a show cause notice was issued but the petitioner did not respond. However, the court found that the petitioner was not given a proper opportunity to be heard. The court held that the cancellation of a licence without affording an opportunity of hearing is illegal and unsustainable. The court set aside both the impugned orders and directed the Tahsildar to restore the licence and permit the petitioner to run the hotel. The court also directed that if the Tahsildar intends to take any action, he must follow the principles of natural justice.

Headnote

A) Administrative Law - Natural Justice - Cancellation of Licence - Opportunity of Hearing - The Tahsildar cancelled the Eating House Licence without giving the petitioner an opportunity to show cause, violating principles of natural justice - Held that cancellation without hearing is unsustainable (Paras 1-6).

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Issue of Consideration

Whether the cancellation of an Eating House Licence by the Tahsildar without granting an opportunity of hearing to the licensee is valid in law.

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Final Decision

The court allowed the writ petition, set aside the impugned orders dated 26.8.2013 and 3.3.2014, and directed the Tahsildar to restore the Eating House Licence and permit the petitioner to run the hotel. The court further directed that if any action is to be taken, the Tahsildar must follow principles of natural justice.

Law Points

  • Natural Justice
  • Audi Alteram Partem
  • Cancellation of Licence
  • Opportunity of Hearing
  • Show Cause Notice
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Case Details

2014 LawText (BOM) (07) 133

Writ Petition No.1803 of 2014

2014-07-30

A. P. Bhangale, J.

Shri Kuldeep Mahalle (for Petitioner), Shri A.S.Kilor (for R3), Shri D.M.Kale (AGP for R1 & 2)

Hotel Mahee, Through its Proprietor, Mrs. Bharati Sachin Jaiswal

The Collector, Amravati; The Tahsildar, Warud; Chandrashekhar Mahadeorao Alaspure

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Nature of Litigation

Writ Petition challenging cancellation of Eating House Licence and dismissal of appeal.

Remedy Sought

Petitioner sought quashing of orders cancelling the Eating House Licence and restoration of the licence.

Filing Reason

The Tahsildar cancelled the Eating House Licence without giving an opportunity of hearing to the petitioner.

Previous Decisions

The Collector dismissed the appeal against the cancellation order on 3.3.2014.

Issues

Whether the cancellation of Eating House Licence without opportunity of hearing is valid. Whether the principles of natural justice were violated.

Submissions/Arguments

Petitioner argued that no show cause notice or opportunity of hearing was given before cancellation. Respondents contended that show cause notice was issued but petitioner did not respond.

Ratio Decidendi

Cancellation of a licence without affording an opportunity of hearing violates principles of natural justice and is unsustainable in law.

Judgment Excerpts

The petitioner challenges order dated 26.8.2013, passed by respondent No.2/Tahsildar, Warud, cancelling the licence granted in favour of petitioner/"Hotel Mahee". The grievance of the petitioner is that the Tahsildar, Warud could not have cancelled the Eating House Licence without giving opportunity of hearing to the petitioner. Under these circumstances, the contention of the petitioner is that the opportunity to show cause against cancellation of Eating House Licence was not granted is acceptable.

Procedural History

The Tahsildar cancelled the Eating House Licence on 26.8.2013. The petitioner appealed to the Collector, who dismissed the appeal on 3.3.2014. The petitioner then filed the present writ petition.

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