
The Bombay High Court on Monday directed the Maharashtra government to respond within a week to a Rs 50.62 lakh compensation claim by Hotel Pawan Bar & Restaurant in Navi Mumbai. The…
The Bombay High Court on Monday directed the Maharashtra government to respond within a week to a Rs 50.62 lakh compensation claim by Hotel Pawan Bar & Restaurant in Navi Mumbai. The restaurant says it lost that amount after its licences were suspended despite a re-inspection showing 100% compliance with food safety norms. The court had earlier quashed the suspension and questioned why the FDA kept the establishment shut after it was cleared.

The restaurant was closed for 21 days between July 14 and August 3. It calculated the loss from its June 2026 sales of Rs 69.90 lakh over 29 working days, leading to an average daily revenue of about Rs 2.41 lakh. The government pleader sought time to reply, which the bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad granted. The matter will be taken up after the state files its response.
The claim arises from a 21-day closure between July 14 and August 3, 2026, a period in which the restaurant says it lost an average daily revenue of about Rs 2.41 lakh. The FDA's own re-inspection had cleared the premises at 100% compliance on July 14, yet the licence suspension was not lifted until the High Court intervened. The key legal question is whether the state can be held liable for losses that flow from an administrative action that a court later finds arbitrary. The government has one week to file its reply, if the court accepts the compensation argument, it could set a precedent for businesses challenging regulatory overreach. The next hearing will follow the state's response filing.
Source: freepressjournal.in
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