Bombay HC Seeks State Response on Belapur Hotel's Rs 50.62 Lakh Compensation Claim
The Bombay High Court has directed the Maharashtra government to respond to a compensation claim of Rs 50.62 lakh filed by Hotel Pawan Bar & Restaurant, located in Belapur, for financial losses suffered due to the prolonged suspension of its licences despite achieving full compliance with food safety norms.
A bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad issued the directive while hearing a petition moved by the establishment. The High Court had earlier quashed the suspension orders and directed authorities to reinstate the licences, questioning the Food and Drug Administration (FDA) for maintaining the shutdown even after an inspection confirmed complete compliance.
Advocates Mayur Khandeparkar and Sagar Shetty, representing the restaurant, submitted an audited statement of accounts prepared by Chartered Accountants K. U. Kothari & Co. detailing the losses incurred during a 21-day forced closure between July 14 and August 3. The claim was calculated based on June 2026 sales figures of Rs 69,90,611 across 29 working days, representing an average daily revenue of Rs 2,41,055.55 and totaling Rs 50,62,166.59 in lost earnings.
The regulatory action began following an FDA inspection on June 29, which found the Belapur establishment 63 per cent compliant with food safety standards. The FDA suspended its food licence the following day, and the Thane Collector of State Excise subsequently suspended its foreign liquor licence on July 8.
According to the petitioner, the restaurant swiftly addressed all cited deficiencies and achieved a 100 per cent compliance rating during a re-inspection on July 14. Despite this outcome, the FDA Commissioner maintained the suspension following an appeal hearing on July 28. Counsel for the establishment argued that constitutional courts possess the authority to award compensation when arbitrary actions by state authorities inflict severe prejudice and breach natural justice.
Government Pleader P. P. Kakade requested one week to submit a formal reply to the petitioner's affidavit. The bench granted the time and instructed the state government to address the compensation claim and the financial losses allegedly caused by the authorities' actions before the matter is heard again.
