Where A Person Wants To Do Liquor Trade, He Would Have To Accept Conditions As Framed By The State: P&H High Court Rejects Petition Challenging Haryana’s Excise Policy On Late-Night Liquor Sales

The case arose from a petition challenging a provision in the Haryana Excise Policy for 2024-25, which permits bars and pubs in Gurugram and Faridabad to remain open beyond midnight,but restricts establishments in other districts from doing so. Liquor license holders in Panchkula, who were previously allowed to operate until 2:00 AM, with the possibility of further extending operations until 8:00 AM for an additional ₹20 lakh annual fee, filed the petition. They argued that the new policy, which limits their operations to midnight, unfairly altered the conditions of their licenses.

A Division Bench consisting of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisht expressed concerns about the social impact of allowing people to stay out late at bars and pubs, especially in the context of Indian society's traditional values.

“Excess drinking and indulging in night life in Indian society is still a social taboo. While we may not be understood to discourage night clubs but the policy makers ought to take into consideration the Indian culture and also consider the that the percentage of literacy and mature understanding and repercussions of excessive drinking is yet a far reaching goal,” the Court remarked.

Senior Advocate Anand Chhibbar appeared for the Petitioners and Additional Advocate General Sharan Sethi appeared for the Respondents.

The Court further noted that, although some states in India have enforced absolute prohibition, most have established specific time limits for the sale of alcohol. Once a time limit is set, the Court argued, there should be no provision for extending the hours throughout the night, especially for an additional cost. It emphasized the need to balance the revenue generated from liquor sales with the preservation of the state's cultural values. The Court said, “A balance has to be struck between the amount of revenue being earned vis-à-vis maintaining and nurturing the culture of the State. It is expected that the State shall take into consideration our observations while framing the future excise policy,”

However, the Court rejected the petition, stating that the petitioners, having obtained their licenses under the current Excise Policy, could not challenge portions of the policy that did not suit them. The Court affirmed the principle of "take it or leave it" in contractual matters, meaning that those who choose to engage in the liquor trade must accept the terms set by the State. “Principle of ‘take it or leave it’ has to be accepted and applied in contractual matters. Where a person wants to do liquor trade, he would have to accept the conditions as framed by the State,” the Court stated.

The Court also clarified that no restrictions had been placed on the petitioners' ability to operate their businesses in Gurugram "The petitioners are carrying on business of sale of liquor in their pubs and bars at Panchkula, the persons situated at Gurugram and Faridabad cannot be said to be similarly situated. The amount of license fee which they have to pay is different from what is being paid by license holder at Panchkula," the Bench concluded.

Cause Title: DA Bodega Hospitality & Ors. v. State of Haryana & Ors., [2024:PHHC:162594-DB]

Appearance:

Petitioners: Senior Advocate Anand Chhibbar assisted by Advocates Shreya B. Sarin, Vaibhav Sahni, Manu Loona