Bombay HC Seeks Maharashtra Govt Response To Hotel Pawan’s ₹50.62 Lakh Compensation Claim

Mumbai, August 24, 2026: The Bombay High Court on Monday directed the Maharashtra government to respond to a compensation claim of Rs 50.62 lakh claimed by Navi Mumbai’s Hotel Pawan Bar & Restaurant for losses allegedly suffered due to the suspension of its licences, despite the establishment later being found 100 per cent compliant with food safety norms.

Court Seeks State Response

A bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad was hearing a petition filed by the Belapur-based restaurant. The court had earlier quashed the suspension and directed reinstatement of its licences after questioning the Food and Drug Administration (FDA) for continuing the suspension despite a subsequent inspection showing full compliance.

Advocates Mayur Khandeparkar and Sagar Shetty, for the restaurant, submitted an affidavit setting out the computation of losses, supported by an audited statement of accounts. He said the restaurant had suffered financial losses because of the continued suspension.

Khandeparkar also submitted that the petitioner had challenged the suspension through an appeal, but its grievance was not properly considered. Relying on Supreme Court precedents, he contended that constitutional courts can award compensation where arbitrary action by State authorities causes serious prejudice and violates principles of natural justice.

Losses During 21-Day Closure

According to the affidavit audited by Chartered Accountants K. U. Kothari & Co., the restaurant remained closed for 21 days between July 14 and August 3 due to the continued suspension. It calculated its loss based on June 2026 sales of Rs 69,90,611 earned over 29 working days, translating into an average daily revenue of Rs 2,41,055.55. For 21 days, the claimed loss works out to Rs 50,62,166.59.

The dispute arose after an FDA inspection on June 29 found the restaurant 63 per cent compliant with food safety requirements. Its food licence was suspended the next day, while the Thane Collector of State Excise suspended its foreign liquor licence on July 8.

Compliance Reached 100 Per Cent

The restaurant claimed that it promptly rectified the deficiencies. During a re-inspection on July 14, it secured a 100 per cent compliance score. However, the FDA Commissioner continued the suspension even after hearing the restaurant’s appeal on July 28.

The High Court subsequently quashed the suspension and directed reinstatement of the licences, questioning the justification for keeping the establishment shut despite the finding of full compliance. The court also asked the petitioner to submit loss suffered by it due to forced closure.

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State Seeks Time To Reply

Government pleader PP Kakade, appearing for the State, sought a week to file a reply to the petitioner’s affidavit.

The bench granted the request and directed the State to specifically respond to the compensation claim and the financial loss allegedly caused by the authorities’ actions.

The matter will be considered after the State files its response.

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