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V.Omalingam v. the Deputy Commissioner (Excise)

Madras HC24 Jul 2026WP/34097/2025

Case brief

AI extract

What is this about?

Madras High Court; WP No. 34097 of 2025 (connected WMP No.38249 of 2025); V.Omalingam v. Deputy Commissioner (Excise), Government of Puducherry, Karaikal and V.Seetha; Pondicherry Excise Act, 1970 Section 28; FL-2 licence; show cause notice for suspension/cancellation set aside; retirement or withdrawal of partner not a statutory ground for suspension or cancellation; certiorarified mandamus; Article 226; Hemant Chandangoudar J.; decided 24-07-2026.

What did the court decide?

Impugned show cause notice dated 19.08.2025 issued by the first respondent set aside; connected miscellaneous petition closed; no order as to costs. ¶29

V.Omalingam Vs the Deputy Commissioner (Excise) — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Impugned show cause notice dated 19.08.2025 issued by the first respondent set aside; connected miscellaneous petition closed; no order as to costs.

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Issue for consideration

Whether the show cause notice dated 19.08.2025 issued under Section 28 of the Pondicherry Excise Act, 1970, founded on the second respondent's claimed retirement from the partnership firm, seeking suspension or cancellation of the FL-2 licence, is legally sustainable.

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Court's answer

Section 28 of the Pondicherry Excise Act, 1970 empowers the licensing authority to suspend or cancel a licence only on the grounds specifically enumerated therein.

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Ratio / Principle

Retirement or withdrawal of one of the partners is not a statutory ground for suspension or cancellation of the licence; therefore the impugned show cause notice was issued without any legal basis and cannot be sustained.

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Detailed headnote1 paragraphs

Writ Petition (Article 226, certiorarified mandamus) allowed. The petitioner, a partner of M/s.Selvam Wines in whose favour an FL-2 licence had been granted, challenged a show cause notice dated 19.08.2025 (No.2504/DCE/C2/2025-26/2622) issued by the Deputy Commissioner (Excise), Government of Puducherry, Karaikal under Section 28 of the Pondicherry Excise Act, 1970, premised on a representation dated 06.08.2025 by the second respondent (his sister and co-partner) claiming retirement from the partnership. Held: Section 28 empowers the licensing authority to suspend or cancel a licence only on the grounds specifically enumerated therein, and the retirement or withdrawal of a partner is not one of those statutory grounds; the notice was therefore issued without legal basis and cannot be sustained. Counsel for the second respondent recorded that the disputes had been amicably resolved and raised no objection to quashing. The notice was set aside, the writ petition allowed, the connected miscellaneous petition closed, and there was no order as to costs. Bench: Hemant Chandangoudar, J. Decided 24-07-2026.

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WP No. 34097 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 24-07-2026

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CORAM

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THE HON'BLE MR.JUSTICE HEMANT CHANDANGOUDAR WP No. 34097 of 2025 and WMP No.38249 of 2025

V.Omalingam

..Petitioner(s)

The Deputy Commissioner (Excise) Government Of Puducherry, Karaikal.

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2. V.Seetha

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..Respondent(s)

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Writ Petition filed under Article 226 of the Constitution of India seeking a writ of certiorarified mandamus calling for the records relating to the impugned show cause notice dated 19.08.2025 No.2504/ DCE/ C2/ 2025-26/ 2622 issued by the 1st respondent and the quash the same and consequently directing the 1st respondent to issue further permits to permit the petitioner to conduct the business in FL 2 licence for the shop of M/s.Selva Wines (26/FL-2) situated at R.S.No.7/8 and 7/9 Chandirapady Road, Poovam, Kottucherry, Karaikal.

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For Petitioner(s): Mr.K.M.Vijayan, Senior Counsel for M/s.K.M.Vijayan Associates

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For Respondent(s): Mr.V.Vasanthakumar, AGP (Pondy) for R1

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Mr.Joseph Prabakar for R2

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Page1 of 4

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https://www.mhc.tn.gov.in/judis

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WP No. 34097 of 2025

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ORDER

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The petitioner has challenged the show cause notice dated 19.08.2025 issued by the first respondent, whereby the petitioner was called upon to appear on 26.08.2025 with all supporting documents to show cause why the FL-2 licence should not be suspended or cancelled under Section 28 of the Pondicherry Excise Act, 1970.

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The petitioner is a partner of the firm, M/s.Selvam Wines, in whose favour the FL-2 licence has been granted. According to the petitioner, the second respondent, who is his sister and the other partner of the firm, submitted a representation dated 06.08.2025 stating that she had retired from the partnership. Based on the said representation, the impugned show cause notice came to be issued.

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Learned counsel appearing for the first respondent submitted that the show cause notice has been issued in exercise of the powers conferred under Section 28 of the Pondicherry Excise Act, 1970 and that the writ petition challenging the notice is devoid of merits.

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It is not in dispute that the FL-2 licence stands in the name of M/s. Selvam Wines, a partnership firm of which the petitioner and the second respondent are partners. Although the second respondent claims to have retired from the partnership, such retirement has not yet been legally recognised. Be that as it may, Section 28 of the Pondicherry Excise Act, 1970 empowers the licensing

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Page2 of 4

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https://www.mhc.tn.gov.in/judis

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WP No. 34097 of 2025

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authority to suspend or cancel a licence only on the grounds specifically enumerated therein. The retirement or withdrawal of one of the partners is not one of the statutory grounds for suspension or cancellation of the licence. Therefore, the impugned show cause notice has been issued without any legal basis and cannot be sustained.

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At this stage, learned counsel appearing for the second respondent submitted that the disputes between the parties have been amicably resolved and that the second respondent has no objection to the impugned show cause notice being quashed.

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Recording the above submission and for the reasons stated above, the impugned show cause notice dated 19.08.2025 issued by the first respondent is set aside. The writ petition is accordingly allowed. Consequently, the connected miscellaneous petition is closed. There shall be no order as to costs.

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24-07-2026

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Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No ssk To

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The Deputy Commissioner (Excise) Government Of Puducherry, Karaikal.

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__________ Page3 of 4

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https://www.mhc.tn.gov.in/judis

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WP No. 34097 of 2025