M/S Sakthi Recreation Centre v. The Commissioner of Prohibition and Excise Department

O R D E R The petitioner has challenged the order dated 21.05.2026 passed by the first respondent, suspending the petitioner's FL2 licence under Rule 22(2) of the Tamil Nadu Liquor (License and Permit) Rules, 1981.

¶2The petitioner was granted an FL2 licence subject to certain conditions. One such condition is that liquor should not be served to non-guests or to members and their guests after 11.00 p.m. During a surprise inspection conducted on 06.03.2026, the authorities found that the petitioner's Recreation Centre was allegedly serving liquor to non-guests beyond 10.30 p.m. and was playing loud music. A show cause notice was therefore issued, Page Nos.3/6 calling upon the petitioner to explain why the licence should not be suspended. After considering the petitioner's reply, the first respondent passed the impugned order suspending the licence.

¶3Heard the learned counsel appearing for both sides.

¶4In the reply to the show cause notice, the petitioner did not deny the allegations. However, the inspection report states that non-members were found inside the premises consuming liquor. Based on this material, the first respondent was justified in suspending the FL2 licence for 90 days, which is due to expire on 30.08.2026.

¶5The petitioner has also filed an affidavit before this Court denying the allegations, but has undertaken to strictly comply with all the conditions of the FL2 licence in future. Except for denying the allegations, no further explanation has been offered regretting for serving liquor to non guests. Considering this undertaking, and keeping in mind that the suspension would adversely affect the members of the Recreation Club, this Court is of the view that the impugned order deserves to be interfered with. Page Nos.4/6

¶6Accordingly, the writ petition is allowed. The impugned order dated 21.05.2026 is set aside, subject to the condition that the petitioner shall strictly comply with all the conditions of the FL2 licence and shall not permit any non-guests to consume liquor on the premises. If any future violation is found, the first respondent is at liberty to take appropriate action, including cancellation of the licence.

¶7Consequently, the connected miscellaneous petitions are closed. There shall be no order as to costs.

22.07.2026 Index : Yes / No Speaking / Non-speaking mk Page Nos.5/6 To

¶1The Commissioner of Prohibition and Excise Department 2nd Floor, Ezhilagam Main Building Chepauk, Chennai-600 005.

¶2The Commissioner of Police Greater Chennai Vepery, Chennai-600 007.

¶3The Deputy Commissioner (Excise) 6th Floor, Collector Office Port Trust, Chennai-600 001. Page Nos.6/6 HEMANT CHANDANGOUDAR, J., mk

22.07.2026

Page Nos.1/6 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.07.2026 CORAM THE HONOURABLE MR.JUSTICE HEMANT CHANDANGOUDAR and W.M.P.Nos.25275 and 25276 of 2026 M/s.Sakthi Recreation Centre Represented by its Secretary K.Rajendran S/o.Karuppaiya ... Petitioner vs. 1. The Commissioner of Prohibition and Excise Department 2nd Floor, Ezhilagam Main Building Chepauk, Chennai-600 005. 2. The Commissioner of Police Greater Chennai Vepery, Chennai-600 007. 3. The Deputy Commissioner (Excise) 6th Floor, Collector Office Port Trust, Chennai-600 001. … Respondents Writ Petition filed under Article 226 of the Constitution of India seeking a Writ of Certiorarified Mandamus, to call for the records on the file of the 1st respondent in Proceedings No.P&E 2(4)/1022/2026 dated Page Nos.2/6 21.05.2026 and to quash the same as illegal, incompetent, unconstitutional and irregular and further direct the 1st and 2nd respondents to refrain from unreasonable interfering in the lawful operations of the petitioner. For Petitioner : Ms.V.Srimathi For Respondents : Mr.M.Sivavarthanan Government Counsel, for R1 Mr.Durai Gunasekaran Government Counsel, for R2 and R3 *****