Court Grants Interim Relief After Petitioner's Reply to Show Cause Notice Ignored
In a significant interim order, the Madhya Pradesh High Court has stayed the prohibition order dated July 29, 2026, against Associated Alcohols and Breweries Limited, citing the failure of the authorities to consider the petitioner's detailed reply to a prior show cause notice. The bench, comprising Justices Subodh Abhyankar and Alok Awasthi, found the respondent's justification unsatisfactory for not addressing the issues raised by the petitioner.
The case, WP No. 31201 of 2026, was brought before the court by Associated Alcohols through its Director, Mr. Tushar Bhandari, against the Union of India and other respondents. The legal representation for the petitioner included Senior Advocate Shri Piyush Mathur, alongside advocates Shri Mayur Singh Waghela, Shri Amit Dubey, and Shri Naresh Kumar Chaubey. The Union of India was represented by Additional Solicitor General Shri Sunil Jain and Advocate Shri Yogesh Kumar Mittal.
The court noted that the prohibition order did not reference the petitioner's reply submitted on July 27, 2026, which was a response to an earlier notice dated July 20, 2026. The respondent Union of India, represented by Shri Sunil Jain, argued that the reply's preliminary objections regarding jurisdiction had not been resolved. However, the court did not find this explanation satisfactory.
Considering that the products in question, pre-packed whisky and rum, were compliant with the Excise Act and related regulations, the court decided to stay the prohibition order until the next hearing date. This decision provides temporary relief to the petitioner, allowing their business operations to continue without disruption.
The matter is scheduled to be revisited after four weeks, with the court directing the Union of India to file a reply within this period.
Bottom Line:
Interim relief granted when the impugned order of prohibition did not consider the detailed reply filed by the petitioner in response to the show cause notice.
Statutory provision(s): Excise Act and Rules
