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SH ANIL KAPOOR & ORS. vs GOVERNMENT OF NCT OF DELHI THROUGH CHIEF SECRETARY & ORS.

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* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ LPA 217/2024, CM APPL. 15537-15538/2024
SH ANIL KAPOOR & ORS. ….. Appellants
Through: Mr. Harish Katyal, Ms. Monika Katyal, Mr. Kamal Sethi and Ms. Nidhi, Advocates
versus

GOVERNMENT OF NCT OF DELHI THROUGH CHIEF SECRETARY & ORS. ….. Respondents
Through: Mr. Prashant Manchanda, ASC

% Date of Decision: 18th March, 2024

CORAM:
HON’BLE THE ACTING CHIEF JUSTICE
HON’BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
JUDGMENT

MANMOHAN, ACJ : (ORAL)
CM APPL. 15537/2024 (for exemption)
Allowed, subject to all just exceptions.
Accordingly, the present application stands disposed of.
CM Appl. 15538(2024) (for condonation of delay)
Keeping in view the averments in the application, the same is allowed and delay in filing the appeal is condoned.
Accordingly, present application stands disposed of.
LPA 217/2024
1. The present Letters Patent Appeal arises from an order dated 28th April, 2023 passed by the learned Single Judge in W.P.(C) 5455/2023.
2. Learned counsel for the Appellant states that the prayers sought in the present appeal are covered by the common order dated 26th February, 2024 passed by a Coordinate Bench of this Court in LPA 193/2023 and connected matters. He states that the Appellants herein are seeking the relief granted to similarly placed landlords vide order dated 26th February, 2024. He states that like the other landlords the stock lying in the tenanted premises, owned by the Appellants has already been inventorised by Respondent Nos. 1 and 2.
3. Issue notice. Learned counsel for the Respondent Nos 1 and 2 accepts notice. He fairly states that the Appellants herein are similarly placed like the respondents/landlords in LPA Nos. 193/2023 and connected matters which stand disposed of vide order dated 26th February, 2024. He states, however, the Respondents herein have not accepted the said order and are contemplating to challenge the same.
4. We have heard the learned counsel for the parties and perused the record.
5. The order dated 26th February, 2024 relied upon by the Appellants herein reads as under:
“CM APPL. 7995/2024 in LPA 193/2023
CM APPL. 7845/2024 in LPA 183/2023
CM APPL. 7848/2024 in LPA 192/2023
CM APPL. 7849/2024 in LPA 194/2023
CM APPL. 7847/2024 in LPA 201/2023
CM APPL. 7850/2024 in LPA 203/2023
CM APPL. 7846/2024 in LPA 207/2023
1. The above-captioned applications have been filed by the landlords of the subject premises, which, at the relevant point in time, were run as liquor vends.
2. The tenant of the subject premises, i.e., M/s Popular Spirits LLP was, concededly, the licensee who was running the liquor vends.
3. It is the case of the non-applicants/appellants that pursuant to the scraping of the Delhi Excise Policy 2021-22, the licences issued have become inefficacious w.e.f. 31.08.2022.
4. It is also not in dispute that the subject premises were sealed on 16.07.2022 and that as per the non-applicants/appellants, the tenant/licensee is required to pay government dues amounting to Rs.20,42,96,782/-. These are dues which are outstanding as on 31.12.2023. The said amount includes licence fee crystallized at Rs.9,82,88,771/-. The remaining amount comprises interest penalty and MSR penalty. A detailed break-up of the total outstanding dues amounting to Rs.20,42,96,782/- is set forth in paragraph 10 of the affidavit filed on behalf of the non-applicants/appellants.
5. Counsel for the applicants/landlords as well as the tenant/licensee submits that it is serving no one’s interest, much less that of the nonapplicants/appellants, in continuing with the logjam.
5.1 The submission advanced is that the applicants, who consist of landlords, are not being able to obtain possession of their respective properties. It is contended that the liability of the tenant/licensee qua government dues can possibly be scaled down if the liquor stocked in the subject premises is auctioned. The argument is that the nonapplicants/appellants would be able to at least partially recover their dues if the stocked liquor is auctioned.
5.2 Thus the submission of the applicants/landlords is that if the procedure prescribed in Rule 56 of the Delhi Excise Rules, 2010 [in short, “Excise Rules”] is followed, the logjam can be broken.
6. To be noted, we had issued notice in the above-captioned applications. Despite notice, curiously, no reply has been filed by the nonapplicants/appellants.
7. In our opinion, any further delay is going to degrade the interest of all parties including non-applicants/appellants. Therefore, we are inclined to direct the non-applicants/appellants to remove the stock, which, concededly, has already been inventorised pursuant to the orders passed by this court, albeit within the next two (02) weeks.
7.1 In disposing of the stock, the non-applicants/appellants will follow the procedure prescribed under Rule 56 of the Excise Rules.
8. The applications are disposed of in the aforesaid terms.
LPA 193/2023
LPA 183/2023 and CM APPLs. 7684-85/2024 &7782/2024
LPA 192/2023
LPA 194/2023
LPA 201/2023
LPA 203/2023
LPA 207/2023
9. In view of the orders passed in the above-mentioned interlocutory applications, according to the counsel for the appellants, the appeals can be closed keeping the question of law open.
9.1 It is ordered accordingly.
10. Consequently, pending applications shall also stand closed.
11. The date already fixed in the matters i.e., 30.05.2024 shall stand cancelled.”

6. In the present case, the Appellants as well are the landlords of the premises bearing unit no. G1-G6 on ground floor, having Carpet area of 542 Sq. Ft., situated on Freehold Plot No.8, situated at Facility Centre, Mayapuri Phase-II, New Delhi-110064. (‘subject premises’), which, at the relevant point in time, were run as liquor vends by Respondent No. 3.
7. The tenant of the subject premises, Respondent No. 3, i.e., M/s Popular Spirits LLP was, concededly, the licensee who was running the liquor vends. It is stated that Respondent No. 3 surrendered the license on 13th July, 2022.
8. It is also not in dispute that the subject premises were sealed by Respondent Nos. 1 and 2 on 16th July, 2022 for non-payment of statutory license fees by the Respondent No. 3. It is the case of the Appellants that they are not responsible for the acts and omissions of Respondent No. 3 and they should not be made to suffer due to the actions of the said lessee. It is a matter of record that the license issued in favour of Respondent Nos. 3 to 6 has expired on 31st July, 2022.
9. We are therefore satisfied that Respondent Nos. 1 and 2 have failed to show any ground for not issuing directions akin to the order dated 26th February, 2024.
10. We accordingly dispose of the present appeal in terms of the order dated 26th February, 2024 passed in LPA 193/2023 and connected matters with a direction to Respondent Nos. 1 and 2 to remove the stock lying in the subject premises, within the next two weeks. In disposing of the stock, Respondent Nos. 1 and 2 will follow the procedure prescribed under Rule 56 of the Delhi Excise Rules, 2010.
11. The appeal is disposed of in the aforesaid terms, keeping the question of law open.
12. In view of the aforesaid order, W.P.(C) 5455/2023 also stands disposed of. The right of the Appellant to avail appropriate remedy against Respondent Nos. 1 and 2 for the relief (c) in the writ and the corresponding prayer (c) in this appeal is hereby reserved. The next date of hearing i.e., 30th May, 2024 before the learned Single Judge is cancelled.

ACTING CHIEF JUSTICE

MANMEET PRITAM SINGH ARORA, J
MARCH 18, 2024/hp/msh/ms

LPA 217/2024 Page 2 of 2