Authority: High Court of Judicature at Madras

Order Date: 28-09-2026

Case Overview

  • Multiple writ appeals (WA Nos. 1496‑1513 of 2026) were filed by the State of Tamil Nadu and the Commissioner of Prohibition and Excise against various FL2 and FL3 liquor licence holders, including Sri Ramanuja Hotels (p) Ltd, Associated Brothers Club, Vikram Towers, Towers Club, Hotel Raj Palace, Ceebros Hotel Pvt Limited, Sakthi River Resorts (India) Pvt. Ltd., Chennai Cultural Centre, and Madras Race Club.
  • The appellants sought to set aside a common order dated 25‑07‑2023 issued by a learned Single Judge, which had allowed the respondents’ writ petitions for a refund of proportionate privilege and licence fees for periods when business could not be transacted due to the COVID‑19 lockdown.
  • Respondents claimed refunds for 168 days (17 Mar 2020 to 03 Sep 2020) and for 171 days covering parts of the 2019‑2020 and 2020‑2021 financial years, invoking Rule 24‑A of the Tamil Nadu Liquor License and Permit Rules, 1981 and its proviso.
  • The Additional Advocate General (Mr. T. Gowthaman) argued that surrender of the licence was mandatory for any refund, whereas counsel for the respondents contended that the Single Judge correctly interpreted the rule and that refunds should be allowed.
  • The Court referred to its earlier judgments dated 10‑08‑2026 and 24‑08‑2026, which examined the same provision of Rule 24‑A. In those judgments the Court held, on equity, that licence‑holders were entitled to a refund/adjustment for the 171‑day period without surrendering their licences, provided they proved non‑transaction of business.

Final Outcome

  • The common order dated 25‑07‑2023 is set aside insofar as it pertained to the eight writ appeals listed.
  • The writ appeals are allowed. Each respondent may approach the Commissioner of Prohibition and Excise for a refund of licence and privilege fees limited to 168 days (for WA Nos. 1496, 1512, 1501, 1502) or 171 days (for WA Nos. 1497, 1498, 1499, 1511, 1513).
  • Claim petitions must be filed within two weeks from the date of this judgment.
  • Upon receipt of a genuine claim with supporting evidence, the Commissioner shall pass an appropriate order within twelve weeks.
  • No costs are awarded. All connected miscellaneous petitions are closed.

Topics: Liquor Licensing, COVID‑19 Refunds