Can’t suspend bar’s performance licence until criminal allegations proved: HC

MUMBAI: 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

MUMBAI: 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.

SERB challenged both suspension orders before the divisional commissioner, but its plea was dismissed on October 5, following which Shetty approached the High Court. While setting aside the suspension orders, Justice Jamadar pointed out that the authorities had failed to consider crucial material gathered during the police raids.

The suspension orders “do not indicate, even remotely, that the competent authority had either considered the inspection report or the panchnama drawn by the police officers at the time of the respective raids”, the court observed. It added that the entire action appeared to have been based on the show-cause notices, registration of offences and earlier suspension orders issued for varying periods.

In the absence of consideration of the necessary reports, the competent authority was “disabled from forming an informed opinion about the violation of the rules or conditions of licence”, Justice Jamadar said.

Referring to previous High Court rulings, the judge reiterated that the mere pendency of a criminal prosecution cannot be a ground for cancelling or suspending a licence to run a business or operate a performance or amusement establishment.

“The foundational premise is that, the indictment on the strength of which a crime has been registered is yet to be proved at the trial. In the event a conviction is recorded, different considerations come into play,” the court said.