Delhi HC Restrains Authorities From Taking Coercive Action Against Le Meridien Hotel On Licence Issue

Delhi High Court

The Delhi High Court has barred authorities from taking any coercive steps against Le Meridien Hotel, Janpath, amid an ongoing dispute over the renewal of its licences.

The court directed the Delhi Police to process the hotel’s application for renewal of its Eating House Licence and Lodging Licence without insisting on a health trade licence, which is currently under judicial review.

Justice Sachin Datta, while hearing a plea by C J International Ltd—operator of the five-star hotel—also issued notices to the Joint Commissioner of Police and the Delhi government, seeking their response within four weeks. The matter will next be heard on August 5.

“The respondent nos. 1 and 2 are directed to process the petitioners’ application for renewal of the eating house license and lodging licence without insisting on a health trade licence,” the court said in its order.
“Till the next date of hearing, respondents are restrained from taking any coercive action against the petitioners.”

Health Trade Licence Dispute At The Core

The controversy stems from the cancellation of Le Meridien’s health trade licence by the New Delhi Municipal Council (NDMC) in 2017. That cancellation was stayed by the High Court—a stay that remains in effect. However, authorities have reportedly continued to insist on a valid health trade licence as a precondition for renewing the hotel’s other licences, including its excise permit.

The hotel approached the court, arguing that the denial of renewal based on the disputed health trade licence was unjustified, especially given the earlier stay order.

Their counsel argued that valid eating house and lodging licences are necessary to serve alcohol and operate the restaurant within the hotel premises.

Court Refers To Precedent

The court also referenced a recent judgment involving another restaurant, where it was held that excise licence renewals cannot be denied solely due to the absence of a health trade licence.

Applying similar reasoning, Justice Datta observed that the same principle applies to Le Meridien, thereby allowing the renewal process for its licences to proceed independently of the ongoing health licence dispute.