HC rejects complaints against closing of bars at midnight in Panchkula

The Punjab and Haryana High Court has dismissed petitions challenging the Haryana government’s decision to ban serving alcohol in Panchkula bars and pubs after midnight.

The Supreme Court dismissed the petitions of Panchkula bar owners challenging the excise policy clause for the financial year 2024-2025, which came into force in June 2024 and will remain in force till June 2025.

In FY 2023-24 in Panchkula, pubs/bars were allowed to serve alcohol throughout the night on payment of a fixed fee.

In the complaint, the bar owners argued that it was a case of discrimination because people in similar situations (in other districts) were treated differently by the authorities.

While in Gurugram and Faridabad, pubs and bars were allowed to serve alcohol throughout the night, in Panchkula it was allowed only till midnight. The justification stated that the petitioners ran businesses in the hospitality industry and spent billions of dollars on them. However, the government changed its mind and did not allow alcohol to be served after midnight.

The court dismissed this objection, finding that excise tax policies varied from district to district in the state. It cannot be said that license holders in L-4 and L-5 districts of Faridabad and Gurugram districts and in other districts including Panchkula were in a similar situation, nor can it be said that they followed a policy of exceptional class in scope of excise duty.

The amount of license fee they had to pay was different from the amount paid by license holders in Panchkula.

“…when the petitioners have obtained a license under the said excise policy and are carrying on their business under the terms and conditions stipulated therein, they cannot turn around and question the part of the said policy which does not suit them. The “take it or leave it” principle in contractual matters should be adopted and applied. If someone wants to trade alcohol, they must accept the conditions set by the state. No one stopped the petitioners from doing business in Gurugram if they thought it was more profitable,” the court said, adding that a person involved in the liquor trade would know what awaited them throughout the year. He added that everyone knows that the change in excise duty policy for every year is well known.