Delhi High Court allows Hauz Khas Social to resume serving alcohol

The Delhi High Court recently directed the Excise Department to allow Epiphany Hospitality Pvt. Ltd., which operates the popular restaurant and bar Hauz Khas Social, to resume liquor sales after an abrupt order suspending of operations earlier this month. .Justice Sachin Datta stayed the Excise Department's notice in this regard and also pulled up the Delhi Police Licensing Unit for unnecessary delays in renewing the establishment’s Eating House License."The direction contained in the SCN-cum-order dated 08.04.2025, issued by the 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 licence be not suspended) within the time granted thereunder. The same shall be duly adjudicated by the concerned licencing authority," the Court directed.The order was passed after Epiphany Hospitality challenged the Excise Department's directive that was issued during an inspection on April 3. The restaurant holds valid L-17 and L-17F licenses for serving Indian and foreign liquor which are valid until June 30 this year..The dispute arose when the Excise Department conducted an inspection on April 3 and directed the restaurant to halt liquor sales, citing the absence of a valid Eating House License. The department also seized the bar’s liquor stock, though it later denied confiscating anything and claimed that it had only issued a directive to stop sales.Epiphany Hospitality, represented by Senior Advocate Shyel Trehan, argued that while its liquor licenses (valid until June 30) were in order, the Delhi Police Licensing Unit had unreasonably delayed renewing its Eating House Registration which expired on March 31, 2024..It was argued that the restaurant had applied for renewal well in advance but faced bureaucratic hurdles. Despite submitting all required documents, the renewal was pending due to the failure by the Delhi Police to provide an 'area suitability report', a prerequisite for renewal..The Excise Department claimed that liquor sales were halted due to the missing Eating House License while the Delhi Police stated the delay was procedural..Justice Sachin Datta noted that under Delhi Eating Houses Registration Regulations of 2023, an establishment remains "deemed registered" until its renewal is either granted or formally rejected. Since the restaurant’s renewal application was still pending, the Excise Department’s action was "ex-facie misconceived," the Court ruled."Considering that under para-6(ii) 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, 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 held..It also highlighted that the Delhi Police had issued a show-cause notice in January 2025 alleging the restaurant was illegally serving alcohol within 100 meters of a government school and temples. However, after the restaurant’s detailed reply in February, no further action was taken, making the delay in renewal unjustified."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 cancelled, upon submission by the petitioner of its response dated 19.02.2025, no further action was taken by the respondent no.2 pursuant 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..Thus, the Court stayed the order of the Excise Department and permitted the restaurant to serve alcohol. It further directed that Delhi Police Licensing Unit must decide on the license renewal application within two weeks..Hauz Khas Social was represented by Senior Advocate Shyel Trehan with advocates Raghav Anand, Shubham Kathuria,Vidhi Jain and Suhail Ahmed..[Read Order]