Can't nix bar's performance licence over allegations: HC
MUMBAI, Nov. 2 -- The Bombay High Court has restored the performance licence of a Mira Road bar and restaurant, setting aside two orders suspending its operations for 90 days following a police raid last year. The court held that authorities cannot suspend or revoke an establishment's licence merely on the basis of allegations when the charges have not yet been proved.
"Till the time the matter is in the realm of allegations only, the accused (bar) cannot be visited with the consequences of revocation or suspension of the licence," a single-judge bench of Justice N J Jamadar said in a recent order.
Uday Shetty, proprietor of Shreenidhi Enterprises (Mela) Restaurant and Bar (SERB) in Mira Road East, had approached the High Court challenging an October 5 order of the divisional commissioner (Konkan), which dismissed the establishment's challenge to two earlier orders suspending its performance licence and directing it to shut operations for 90 days.
The Kashimira police raided SERB on October 15, 2025, at around 10 pm and subsequently registered an offence against the establishment for alleged violations of the Maharashtra Prohibition of Obscene Dance in Hotels, Restaurants and Bar Rooms and Protection of Dignity of Women (Working Therein) Act, 2016.
Following a notice and personal hearing, the Mira-Bhayander, Vasai-Virar deputy commissioner of police (DCP) suspended SERB's licence for 45 days from December 4, 2025. After a second notice on January 24 asking why its performance licence should not be cancelled, the DCP issued another 45-day suspension order on February 7.
SERB challenged both orders before the divisional commissioner, but its plea was dismissed on October 5, leading Shetty to approach the High Court. Setting aside the suspensions, Justice Jamadar observed that authorities failed to consider inspection reports or panchnamas from police raids, rendering the action based merely on show-cause notices, offence registrations, and past suspensions.
Without reviewing necessary reports, the competent authority was disabled from forming an informed opinion regarding rule or licence violations, the court noted.
Reiterating previous High Court rulings, Justice Jamadar emphasised that the mere pendency of criminal prosecution cannot justify suspending or cancelling a business or performance licence.
The court also noted that different considerations apply only if a conviction is recorded....
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