A Division Bench of the Kerala High Court on Wednesday refused to stay the government decision to cancel bar licences of all hotels below the category of five-star in pursuance to its new liquor policy.

The Bench comprising Justice Thottathil B. Radhakrishnan and Justice P.B. Suresh Kumar issued the order after hearing a batch of petitions filed by various bar hoteliers challenging the cancellation notices issued by the excise authorities.

The court said that bar licences of hotels were renewed by the government saying that it was subject to the new policy of the government. In fact, the licences were renewed as an ad interim measure. The government was exercising its plenary power by renewing the licences. In fact, the privilege of vending liquor extended to these hotels was coterminous with the policy declaration of the government. The court pointed out that the decision to renew the licences was taken though no statutory provisions required the government to renew the licences. The court said there was no prima facie ground to grant an interim stay on the cancellation notices. Advocate General K.P. Dandapani argued that the decision to cancel the licences was part of the policy. . It was a comprehensive policy to get rid of the menace of liquor in a phased manner. In fact, it was taken after considering the report of the Justice M. Ramachandran Commission and many judgements of the Supreme Court.

The Advocate General pointed out that the government policy could not be faulted on the ground that Governor Sheila Dikshit had signed the order after she resigned. He pointed out that her resignation had not been accepted.