Delhi HC Stays Liquor Serving Ban At Eatery Due To Invalid Eating House Licence

The Delhi High Court has stayed an excise department order that directed Hauz Khas Social, a well-known restaurant in the capital, to stop serving liquor due to the pending renewal of its eating house licence.

Justice Sachin Datta, while hearing the case, said the restaurant’s previous licence—valid until March 31, 2024—continues to remain in effect until either a renewal certificate is issued or an official refusal is communicated by the Delhi Police licensing unit.

“Considering that under… of the Delhi Eating House Registration Regulations, 2023, the registration already granted to the petitioner shall enure, till the renewal certificate is issued or till an intimation of refusal is issued by the respondent No. 2 (police), the direction contained in the show-cause notice-cum-order of April 8, 2024, requiring the petitioner to ‘cease the operation of service of liquor’, is ex-facie misconceived,” the court stated.

Restaurant’s Plea & Licence Status

The petition was filed by Epiphany Hospitality Pvt. Ltd., which operates the outlet under the brand name ‘Hauz Khas Social’. The restaurant challenged the disruption of its operations from April 3, 2025, citing delays in the renewal of its eating house licence.

According to the petitioner, while the eating house licence was under renewal, the restaurant possessed a valid liquor licence, covering Indian and foreign liquor, extended until June 2025.

Authorities’ Response

The Delhi Police licensing unit told the court that the renewal was in process, but had been delayed due to the pending “area suitability report” from the concerned unit.

Meanwhile, the excise department denied seizing any liquor and clarified that it only issued a directive halting liquor sales until further instructions.

Court’s Interim Relief

Observing that the registration remains valid unless explicitly rejected, the High Court said the excise department’s order was premature. The court has stayed the direction to stop liquor service until the issue is resolved.

The court also directed the licensing unit to process the renewal request promptly, ideally within two weeks, and asked the restaurant to respond to the show-cause notice in the meantime.

“The respondent No. 2 is directed to process the petitioner’s application for renewal… and take a decision thereon… preferably within a period of two weeks,” the court noted.

The court further reminded the authorities to consider legal provisions carefully before taking any action on the renewal application.