Bars, restaurants lose reprieve as HC lifts stay on licence fee hike

Much to the disappointment of bar and restaurant owners, the Telangana High Court on Friday, November 13, set aside the stay on the mid-year hike in the licence fee.

On November 1, a single-judge bench of the High Court, while hearing petitions filed by bar and restaurant owners from the erstwhile Warangal district, passed an interim order staying the fee hike imposed by the Telangana Excise Department for a month.

On Friday, a division bench comprising Acting Chief Justice P Sam Koshy and Justice Suddala Chalapathi Rao, while hearing an appeal filed by the Telangana government against the interim order, set aside the single judge’s stay and remanded the matters to the single judge for fresh consideration.

The division bench asked the single judge to re-examine the petitions and pass a reasoned order. The Telangana government argued that the interim order was arbitrary and sought its suspension. However, counsel for the petitioners opposed the government’s appeal.

Senior counsel P Vishnuvardhan Reddy, appearing for the bar and restaurant owners, argued that an appeal against an interim order was not maintainable under the Letters Patent.

“Moreover, the government did not file a vacate petition challenging this interim order,” he argued.

Reddy also cited precedents and Supreme Court rulings in similar matters and urged the bench to dismiss the appeal.

He also argued that issuing a Government Order midway through the excise year was not only illegal and arbitrary but also had a serious impact on businesses.

“Given the maintenance of bars and restaurants, staff payments and other expenses, it has become difficult already, and this additional fee in the middle of the excise year is increasing the burden manifold,” the counsel told the High Court.

Additional Advocate General Mohammed Imran Khan appeared for the government. After hearing submissions from both sides, the bench passed the orders.

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