Bombay High Court Allows Petition Against Denial of Public Entertainment Licence for Restaurant with Valid FLIII Licence — Parking Requirement Not a Valid Ground Under Bombay Police Act, 1951. The Court held that the only precondition for Public Entertainment Licence under Rule 3 of the Public Entertainment Rules is possession of a liquor licence, and the Commissioner cannot impose additional conditions like parking.

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

The petitioner, Rajeev S. Mehta, is the sole proprietor of M/s. Senorita Bar and Restaurant, which holds various licences including an Eating House Restaurant Certificate from the Commissioner of Police and an FLIII Licence from the Collector, Mumbai city, under the Bombay Prohibition Act, 1949. The FLIII Licence authorizes the sale and service of foreign liquor, but before the petitioner can actually sell or serve liquor, he is required to obtain a Public Entertainment Licence under the Bombay Police Act, 1951, as per Section 2(10) and Rule 3 of the Public Entertainment Rules. The petitioner applied for the Public Entertainment Licence, but the Commissioner of Police (Hotel Branch) rejected the application by order dated 12 September 2014 on the sole ground that the petitioner did not have its own parking lot sufficient for at least five vehicles. Aggrieved, the petitioner filed Writ Petition No.10188 of 2014, which was disposed of on 20 November 2014 directing expeditious disposal of the appeal. The appellate authority (State) confirmed the rejection by order dated 18 December 2014. The petitioner then filed the present writ petition challenging both orders. The Court examined the provisions of the Bombay Police Act, 1951 and the Public Entertainment Rules and found that the only precondition for grant of a Public Entertainment Licence under Rule 3 is that the applicant must hold a licence for the sale of liquor under the Bombay Prohibition Act, 1949. Since the petitioner already held a valid FLIII Licence, the rejection on the ground of inadequate parking was arbitrary and not supported by any statutory provision. The Court held that the Commissioner of Police cannot impose additional conditions not found in the statute or rules. Accordingly, the Court quashed the impugned orders and directed the Commissioner of Police to grant the Public Entertainment Licence to the petitioner within two weeks, subject to compliance with other lawful conditions.

Headnote

A) Licensing - Public Entertainment Licence - Parking Requirement - Section 33 Bombay Police Act, 1951 - Rule 3 Public Entertainment Rules - The Commissioner of Police rejected the petitioner's application for Public Entertainment Licence solely on the ground that the petitioner did not have its own parking lot sufficient for at least five vehicles. The Court held that the requirement of parking is not a condition precedent for grant of Public Entertainment Licence under the Act or Rules, and the rejection was arbitrary and unsustainable. (Paras 1-9)

B) Licensing - Public Entertainment Licence - Precondition - Section 2(10) Bombay Police Act, 1951 - Rule 3 Public Entertainment Rules - The Court noted that the only precondition for grant of Public Entertainment Licence under Rule 3 is that the applicant must hold a licence for sale of liquor under the Bombay Prohibition Act, 1949. Since the petitioner already held a valid FLIII Licence, the rejection on extraneous grounds was illegal. (Paras 3-9)

C) Licensing - Public Entertainment Licence - Arbitrariness - Section 33 Bombay Police Act, 1951 - The Court observed that the Commissioner of Police cannot impose additional conditions not found in the statute or rules. The denial of licence on the ground of inadequate parking was arbitrary and violative of Article 14 of the Constitution. (Paras 7-9)

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Issue of Consideration

Whether the Commissioner of Police can refuse a Public Entertainment Licence under the Bombay Police Act, 1951 solely on the ground that the applicant does not have its own parking lot sufficient for at least five vehicles, despite the applicant holding a valid FLIII Licence under the Bombay Prohibition Act, 1949 and other requisite licences.

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Final Decision

The Court allowed the writ petition, quashed the impugned orders dated 12 September 2014 and 18 December 2014, and directed the Commissioner of Police to grant the Public Entertainment Licence to the petitioner within two weeks from the date of the order, subject to compliance with other lawful conditions.

Law Points

  • Public Entertainment Licence cannot be denied solely on ground of inadequate parking if other licences are valid
  • Section 33 of Bombay Police Act
  • 1951 does not mandate minimum parking requirement
  • Rule 3 of Public Entertainment Rules requires liquor licence as precondition not parking
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Case Details

2015 LawText (BOM) (01) 18

WRIT PETITION NO. 34 OF 2015

2015-01-22

M. S. Sonak, J.

Ms Veena Thadhani for the Petitioner, Mr. P.G. Sawant B Panel, AGP for Respondents

Rajeev S. Mehta

The Commissioner of Police (Hotel Branch) and anr.

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Nature of Litigation

Writ petition challenging rejection of Public Entertainment Licence application

Remedy Sought

Quashing of orders dated 12 September 2014 and 18 December 2014, and direction to grant Public Entertainment Licence

Filing Reason

Rejection of Public Entertainment Licence on ground of inadequate parking

Previous Decisions

Writ Petition No.10188 of 2014 was disposed of on 20 November 2014 directing expeditious disposal of appeal; appeal was dismissed on 18 December 2014

Issues

Whether the Commissioner of Police can refuse Public Entertainment Licence solely on ground of inadequate parking Whether the requirement of parking is a condition precedent for grant of Public Entertainment Licence under Bombay Police Act, 1951

Submissions/Arguments

Petitioner argued that he holds all requisite licences including FLIII Licence, and parking is not a condition for Public Entertainment Licence under the Act or Rules Respondents argued that the petitioner does not have its own parking lot sufficient for at least five vehicles, justifying rejection

Ratio Decidendi

The only precondition for grant of Public Entertainment Licence under Rule 3 of the Public Entertainment Rules is that the applicant must hold a licence for the sale of liquor under the Bombay Prohibition Act, 1949. The Commissioner of Police cannot impose additional conditions not found in the statute or rules, such as a requirement of a parking lot. Therefore, the rejection of the licence on the ground of inadequate parking was arbitrary and unsustainable.

Judgment Excerpts

The petitioner's application for Public Entertainment Licence was however rejected by the Commissioner of Police (Hotel Branch) vide order dated 12 September 2014 on the ground that the petitioner does not have its own parking lot, sufficient for parking of at least five vehicles. The only precondition for grant of Public Entertainment Licence under Rule 3 is that the applicant must hold a licence for the sale of liquor under the Bombay Prohibition Act, 1949. Since the petitioner already held a valid FLIII Licence, the rejection on extraneous grounds was illegal.

Procedural History

The petitioner applied for Public Entertainment Licence; rejected by Commissioner of Police on 12 September 2014 on ground of inadequate parking. Petitioner filed Writ Petition No.10188 of 2014, which was disposed of on 20 November 2014 directing expeditious disposal of appeal. Appeal was dismissed by State on 18 December 2014. Petitioner then filed the present writ petition on 22 January 2015.

Acts & Sections

  • Bombay Police Act, 1951: Section 2(10), Section 33
  • Bombay Prohibition Act, 1949:
  • Bombay Foreign Liquor Rules, 1953:
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