Case Note & Summary
The petitioners, Lokranjan Breweries Private Limited and another, filed a writ petition before the Bombay High Court challenging an order dated March 14, 2024, passed by the State Excise Department suspending their excise license. The petitioners contended that the suspension order was passed without granting them any opportunity of hearing, thereby violating the principles of natural justice. The court, after hearing both sides, observed that the impugned order was passed without affording any personal hearing to the petitioners. The court held that such an order cannot be sustained in law as it is in clear violation of the principles of natural justice. Consequently, the court quashed and set aside the suspension order and directed the respondents to restore the license. The court also clarified that the respondents are at liberty to proceed further in accordance with law after giving due opportunity of hearing to the petitioners. The petition was allowed in the above terms.
Headnote
A) Excise Law - Suspension of License - Natural Justice - Rule 8 of the Maharashtra Excise Rules, 1963 - The petitioners challenged the suspension of their excise license without being afforded a personal hearing. The court held that the suspension order was passed in violation of principles of natural justice as no opportunity of hearing was granted before the adverse order. The impugned order was quashed and set aside. (Paras 1-5)
Issue of Consideration
Whether the suspension of an excise license without granting a personal hearing to the licensee is valid in law.
Final Decision
The impugned order dated March 14, 2024 is quashed and set aside. The respondents are directed to restore the license. The respondents are at liberty to proceed further in accordance with law after giving due opportunity of hearing to the petitioners. Rule made absolute in the above terms.
Law Points
- Natural justice
- right to be heard
- suspension of excise license
- Maharashtra Excise Rules
- 1963
- Rule 8
