Apex Court partly sets aside Allahabad High Court relief; permits State to issue fresh show cause notice to licensee Mayoor Ahuja
Supreme Court Modifies High Court Ruling, Allows Fresh Proceedings
The Supreme Court, in an order dated April 6, 2026, partly allowed civil appeals filed by the State of Uttar Pradesh. The case is State of Uttar Pradesh & Ors. v. Mayoor Ahuja.
The Court held that the cancellation of the respondent’s liquor licence was not valid. However, it allowed the State to start fresh proceedings as per law.
Mayoor Ahuja held a CL-2 licence for wholesale vending of country liquor in Badaun and Sambhal districts for the excise year 2020–21.
On March 4, 2021, authorities conducted an inspection. They later issued a show cause notice. The notice cited several issues, including:
- No signboards
- Shortage of stock
- No CCTV cameras
- Lack of fire safety equipment
The respondent denied the allegations. Despite this, the Excise Commissioner cancelled the licence on March 27, 2021. The authority also forfeited the security deposit.
The order relied on additional allegations, such as:
- Illegal transportation
- Forged barcodes
- Loss to the State exchequer
A revision petition was dismissed on February 23, 2024. The respondent then approached the Allahabad High Court.
On April 23, 2025, the High Court set aside the cancellation order.
The Court found that:
- The order relied on allegations not mentioned in the show cause notice
- Many violations were minor and compoundable
- Authorities recorded findings without prior notice or evidence
The Court held that the order violated principles of natural justice. It ruled the cancellation unsustainable.
The Supreme Court agreed with the High Court on key points. It held that:
- The violations were minor
- The cancellation order was legally flawed
However, the Court noted a problem. The High Court’s ruling prevented the State from taking any further action.
The Bench stated that regulating the liquor trade requires accountability. It observed that the High Court should have allowed lawful action instead of closing all options.
