Orissa High Court Quashes Government's Demand for License Fees During Involuntary Shop Closure

License Fees Waived for Liquor Shops Closed Due to Supreme Court Order; Renewal Directed at Alternative Site

In a significant ruling, the Orissa High Court has directed the government to waive license fees for liquor shops that were involuntarily closed following a Supreme Court order. The decision came in response to a writ petition filed by Smt. Puspalata Samal, challenging the demand for arrears from 2018-19 onwards. The court, comprising Chief Justice Harish Tandon and Justice Manash Ranjan Pathak, held that charging fees for a period when the shop could not operate due to court intervention is unreasonable.

The case revolved around the closure of liquor shops situated within 500 meters of national and state highways, following the Supreme Court's 2017 judgment in the case of "State of Tamil Nadu v. K. Balu." The court had mandated these closures to curb road accidents linked to alcohol sales. However, subsequent relaxations in the judgment allowed shops within municipal areas to operate, provided they met other conditions.

Despite these relaxations, Smt. Puspalata Samal's shop remained closed, as her suggested alternative sites were deemed objectionable by the government. The petitioner argued that the license fees for 2018-19 onwards were unjust, given the involuntary closure and the government's decision to waive fees for 2017-18.

The High Court agreed, emphasizing the distinction between voluntary and involuntary closures. It noted that the government's acknowledgment of involuntary closure by waiving fees for the earlier period should extend to subsequent years. The court directed authorities to renew the license at an unobjectionable site without imposing arrear fees, thus allowing the petitioner to resume operations.

The ruling underscores the need for fair treatment of licensees impacted by external court orders and sets a precedent for similar cases. The court's decision provides relief to the petitioner, who had been unable to operate her shop due to compliance with legal mandates.

Bottom Line:

Government cannot charge license fees for the period during which the licensee was involuntarily prevented from operating due to compliance with a Supreme Court order.

Statutory provision(s): Odisha Excise Act, 2005 Sections 29, 35

Smt. Puspalata Samal v. State of Odisha, (Orissa)(DB) : Law Finder Doc Id # 2807061