IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN
AT JAIPUR BENCH, JAIPUR
Sant Ram Verma S/O Shri Ram Kumar Vs State Of Rajasthan
Brief Facts
The petitioner, Sant Ram Verma, a license holder for a composite liquor shop in Jaipur City, challenged the non-renewal/cancellation of his excise license for FY 2023–2024. The excise department had passed the order without providing any opportunity of hearing and allegedly without consistent policy application across similarly situated licensees.
Issues Framed
- Whether the cancellation/non-renewal order violated the principles of natural justice.
- Whether the State acted arbitrarily and discriminatorily, violating Article 14 of the Constitution.
Petitioner’s Contentions
- The impugned order was passed without issuing show cause notice or granting a hearing.
- The action lacked reasons or justification, rendering it a non-speaking order.
- Other similarly placed licensees were treated differently, amounting to discrimination.
Respondent’s Defence
- Claimed that excise license is a privilege, not a fundamental right.
- Alleged non-compliance by the petitioner with terms of the license.
- Justified administrative discretion in public interest.
Hon’ble High Court held that:
- Even discretionary administrative actions must comply with the minimum standards of fairness, especially when they affect livelihood.
- Found that the absence of hearing and recorded reasons was a gross violation of natural justice and recognized disparate treatment of similarly placed licensees as a violation of Article 14.
- Writ Petition Allowed and the impugned cancellation order was quashed.
- State directed to reconsider the license renewal with due process and reasoned decision-making.
