The Delhi High Court has granted interim relief to Epiphany Hospitality Pvt. Ltd., the operator of the popular bar and restaurant Hauz Khas Social, allowing it to resume liquor sales after an abrupt suspension by the Excise Department earlier this month.
COURT STAYS EXCISE DEPARTMENT’S NOTICE
Justice Sachin Datta stayed the Show Cause Notice-cum-order dated April 8, 2025, which had directed the restaurant to stop serving liquor. The Court emphasized that the notice would remain stayed until the Show Cause Notice (SCN) is duly adjudicated.
“The direction contained in the SCN-cum-order dated 08.04.2025, issued by 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 license is not suspended) within the time granted thereunder. The same shall be duly adjudicated by the concerned licensing authority,” the Court stated.
BACKGROUND OF THE DISPUTE
The dispute began after an Excise Department inspection on April 3, during which officials cited the absence of a valid Eating House License and ordered the halt of liquor service. Although the department reportedly seized liquor stock, it later claimed that no confiscation took place.
Epiphany Hospitality, represented by Senior Advocate Shyel Trehan, argued that the restaurant held valid L-17 and L-17F licenses (for serving Indian and foreign liquor), which remain valid until June 30, 2025. The issue, the petitioner stated, arose due to bureaucratic delays by the Delhi Police Licensing Unit, which had not renewed the Eating House Registration that expired on March 31, 2024, despite timely submission of renewal documents.
DELHI POLICE DELAYS CALLED OUT
Justice Datta observed that under the Delhi Eating Houses Registration Regulations, 2023, an establishment continues to be “deemed registered” until its renewal is either accepted or formally rejected.
“Considering that under para-6(ii) of the Delhi Eating House, Registration Regulations, 2023, the registration already granted to the petitioner shall ensure, 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 Court ruled.
SHOW CAUSE NOTICE IN JANUARY 2025 UNRESOLVED
The Court also noted that the Delhi Police had issued a Show Cause Notice in January 2025, alleging that the restaurant was serving liquor within 100 meters of a government school and temples. However, the matter was not pursued further after the restaurant responded in detail in February.
“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 canceled, upon submission by the petitioner of its response dated 19.02.2025, no further action was taken by the respondent no.2 according 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 stated.
COURT’S FINAL DIRECTIONS
- The Excise Department’s suspension of liquor service has been stayed.
- Hauz Khas Social is allowed to continue serving alcohol while the SCN is being adjudicated.
- The Delhi Police Licensing Unit will decide on the pending renewal application within two weeks.
LEGAL REPRESENTATION
Epiphany Hospitality Pvt. Ltd. was represented by Senior Advocate Shyel Trehan, along with advocates Raghav Anand, Shubham Kathuria, Vidhi Jain, and Suhail Ahmed.
