Court Accepts Petitioners’ Bona Fide Error in License Application, Orders Payment of Costs to Welfare Funds
In a significant judgment delivered on August 31, 2026, the Delhi High Court, presided over by Justice Saurabh Banerjee, quashed the FIR No.100/2019 registered at Chanakyapuri Police Station under Section 33 of the Delhi Excise Act, 2009 against Striker Beverages Pvt. Ltd. The case arose from a raid on September 12, 2019, during a soft launch party at Soul Club, Hotel Ashoka, where liquor was found being served allegedly without a valid daily permit.
The petitioners, Striker Beverages Pvt. Ltd. and associated parties, held a valid yearly liquor license for the premises but inadvertently failed to apply for the required daily permit for the event date of September 11, 2019. During the investigation, it emerged that three online applications for daily permits (P-10A licenses) had been filed on September 10, 2019, but due to a typographical error, the application for September 11 was missing while two applications were made for September 14. This mistake was acknowledged as inadvertent and bona fide by the Court.
The Court noted that despite the technical violation, the petitioners demonstrated good faith by holding a valid yearly license and having paid a 50% penalty amounting to Rs.10,62,937 during subsequent licensing proceedings. Additionally, the State did not oppose the quashing of the FIR.
Justice Banerjee emphasized that such inadvertent errors without any ulterior motives should not result in misuse of the judicial process. In light of the petitioners’ conduct and the absence of any malicious intent, the Court allowed the petition to quash the FIR and all related proceedings.
However, the Court imposed a condition that the petitioners deposit a total cost of Rs.2,00,000, split equally between the Delhi High Court Staff Welfare Fund and the Delhi High Court Bar Association Lawyers Social Security and Welfare Fund, within two weeks to ensure accountability.
This ruling underscores the judiciary’s balanced approach to regulatory compliance violations, distinguishing between deliberate wrongdoing and honest mistakes, while upholding the principles of fairness and preventing harassment through criminal proceedings.
Bottom Line:
FIR quashed under Section 482 CrPC for alleged violation of Section 33 of the Delhi Excise Act, 2009, due to inadvertent and bona fide error by the petitioners, subject to payment of costs to welfare funds.
Statutory provision(s): Section 33 of the Delhi Excise Act, 2009; Section 482 of the Code of Criminal Procedure, 1973
Striker Beverages Pvt. Ltd. v. State of NCT of Delhi, (Delhi) : Law Finder Doc Id # 2970446
