The Excise Department said they acted because the Eating House License had expired, while the Delhi Police claimed the delay was “procedural”.
NEW DELHI: The Delhi High Court has recently allowed the popular restaurant and bar, Hauz Khas Social, operated by Epiphany Hospitality Pvt. Ltd., to resume serving liquor after the Excise Department had suddenly asked them to stop earlier this month.
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The order was passed by Justice Sachin Datta, who also criticised the Delhi Police Licensing Unit for unnecessarily delaying the renewal of the restaurant’s Eating House License, which is essential for operations in Delhi.
“The direction contained in the SCN-cum-order dated 08.04.2025, issued by the respondent no.1, to the extent it directs that the petitioner shall cease operation of service of liquor from its restaurant, is stayed till adjudication of the said SCN. The petitioner shall duly respond to the SCN-cum-order dated 08.04.2025 (whereby the petitioner has been directed to show cause as to why its excise licence be not suspended) within the time granted thereunder. The same shall be duly adjudicated by the concerned licencing authority,” the Court stated.
BRIEF FACTS:
The case came up after the Excise Department conducted an inspection at Hauz Khas Social on April 3, 2025, and told them to stop serving liquor immediately. The reason cited was the absence of a valid Eating House License, even though the restaurant had valid L-17 and L-17F licenses for Indian and foreign liquor, which are valid till June 30, 2025.
During the inspection, the department also seized the bar’s liquor stock, but later denied that any stock was confiscated. Instead, the officials said that they only gave a directive to halt liquor sales.
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Epiphany Hospitality, represented by Senior Advocate Shyel Trehan, argued that they had applied for the renewal of the Eating House License well in advance. However, due to bureaucratic delays, the Delhi Police Licensing Unit had not renewed the license even though all required documents had been submitted.
The main problem was the failure of the Delhi Police to provide an ‘area suitability report’, which is a necessary document for the renewal process.
The Excise Department said they acted because the Eating House License had expired, while the Delhi Police claimed the delay was “procedural”.
Justice Sachin Datta referred to the Delhi Eating House Registration Regulations, 2023, and pointed out that if a restaurant has already applied for renewal and the application is pending, then the establishment is “deemed registered” unless its renewal is formally rejected.
“Considering that under para-6(ii) of the Delhi Eating House, Registration Regulations, 2023, the registration already granted to the petitioner shall enure, till the renewal certificate is issued or till an intimation of refusal is issued by the respondent no.2, the direction contained in the aforesaid SCN-cum-order dated 08.04.2024, requiring the petitioner to ‘cease the Operation of Service of Liquor’ is ex-facie misconceived,” the judge said.
This means that the Excise Department’s action to stop liquor sales was wrong and based on a misunderstanding of the law.
The Court also observed that the Delhi Police had earlier issued a show-cause notice (SCN) to the restaurant in January 2025, saying that it was illegally serving alcohol within 100 meters of a government school and temples. However, the restaurant replied in February 2025, explaining that everything was in compliance. Since then, the police took no further action.
“It is also relevant to note that although an SCN dated 21.01.2025, was issued to petitioner by the respondent no. 2, calling upon the petitioner as to why its Eating House Registration Certificate be not cancelled, upon submission by the petitioner of its response dated 19.02.2025, no further action was taken by the respondent no.2 pursuant to the SCN. In the said reply it was pointed out that the DFS has re-inspected the premises on 03.02.2025 and satisfied itself that the premises in question are found compliant with all applicable fire prevention and fire safety requirements and/or other requirements,” the order noted.
The Court has now allowed the restaurant to resume serving liquor and has also ordered that the Delhi Police Licensing Unit must take a decision on the license renewal within two weeks.
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Hauz Khas Social was represented in court by Senior Advocate Shyel Trehan, along with advocates Raghav Anand, Shubham Kathuria, Vidhi Jain, and Suhail Ahmed.
View Order
