Emphasizing that revenue generation should not be at the cost of cultural values, the Punjab and Haryana High Court has emphasized striking a balance between “the amount of revenue that sustains and nurtures the culture of the state”. It warned that people should not be allowed to stay in bars and pubs all night because “excessive drinking and indulging in nightlife is still social in Indian society. Taboo”.
The High Court was hearing petitions filed by bars in Haryana challenging the state’s Production Policy 2024 which prohibited bars/pubs in all other districts of the state except Gurugram and Faridabad from operating till 12 midnight. The petition was filed by DA Bodega Hospitality (Bar of Panchkula) and others.
Dismissing the petitions, a division bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisht said, “…if people are allowed to spend the night in bars and pubs, the social tension of Indian society will be seriously disturbed. Excessive drinking and indulgence in night life in Indian society is still There is a social taboo.While we don’t understand what discourages nightclubs, policy makers should consider the percentage of literacy and mature understanding of the consequences of excessive alcohol consumption. The goal should also be considered.
The High Court said that while some states in India have implemented total prohibition, most states have set a timetable for the sale of liquor. And once the schedule is set, the court said that it should not be arranged to take more money and add overnight time.
“A balance should be maintained between revenue earned by preserving and nurturing the state’s culture. The state is expected to take our observations into consideration while formulating the future excise policy,” the bench said while dismissing the petition.
The petitioners contended that they hold L-4/L-5 licenses (granted for the year 2023-24) of bars/pubs located in Panchkula district. According to the Excise Policy 2023-24, bars and pubs in the state can remain open till 2 am in the state with a provision to further extend till 8 am on payment of an annual fee of Rs 20 lakh.
The petitioners stated that the policy period for the financial year 2024-25 is from June 12, 2024 to June 11, 2025. While other conditions for issuance of L-4 and L-5 licenses remain the same as before. Policy, the respondents (Haryana Government) have changed the hours of sale in bars and pubs and it is maintained that for licensed bars. L-4/L-5/L-10E/L-12C/L-12G will be allowed to remain open till 12 noon (midnight). However, the hours of licensed bars in Faridabad and Gurugram districts can be extended till 2 am on payment of an additional annual fee of Rs 20 lakh per annum.
Senior advocate Anand Chhibbar, counsel for the petitioner, argued that the petitioners had developed the infrastructure to keep the bars/pubs running all night after obtaining the license for 2023-24. They have set up night clubs and those who go to those pubs are from educated families and there is no untoward incident. The petitioners are running a hospitality business and have spent crores. Section 9.8.8 of the Excise Policy 2024-25 has been amended and the petitioners have been deprived of the right to continue their business till 12 midnight. It is further submitted that the petitioners have suffered huge loss due to the said rule which is applicable in their district, i.e., Panchkula, while similarly the other license holders of L-4 and L-5 operating in Gurugram and Faridabad have been allowed to continue. Applicants are also disqualified from applying and being considered for extension of time to operate their businesses overnight by paying additional fees even if they are willing to pay. The lawyer argued that people with similar circumstances should not be treated by different standards.
State Advocate Sharan Sethi, Additional Advocate General, Haryana supported the policy and said that the petitioners have applied for license under the policy for 2024-25 and have been granted license and therefore the conditions will be binding on them and this is it. For the state to make policy. As far as the time table for sale in pubs and bars of any area or locality is concerned, the power vests with the State Government and the Finance Commissioner, State Attorney submitted under the Act and Rules.
Although the schedule for 2023-24 is being decided, a policy decision has been made for the two districts based on the decision of the Council of Ministers. Though the reasons are not mentioned in the order, it is clearly mentioned that a detailed discussion has been held by the ministers under the chairmanship of the Chief Minister and that there will be no interference and that the schedule may be different for two different places. Counsel for the State argued further.
Restraining itself from examining the policy decisions of the Cabinet, the bench said, “The entire excise policy has different norms for different districts”, thereby rejecting the contention of the petitioners that there was any discrimination against the licensees. of Panchkula.
The bench said, “Once the petitioners have obtained a license under the said excise policy and have carried on their business under the conditions prescribed therein, they cannot challenge the part of the said policy which they do not agree with. The principle of ‘take it or leave it’ should be accepted and applied in contractual matters. If you want to trade alcohol, you have to follow the conditions set by the state. Nothing prevented the petitioners from doing business in Gurugram, if they found it more profitable.