1 week ago
Bombay High Court Seeks State Reply On Hotel Pawan Claim
Hotel Pawan is a bar and restaurant in Navi Mumbai.
Its licences were suspended after an inspection found some food-safety problems.
The restaurant said it fixed the problems and later received a 100% compliance score.
Even so, the suspensions continued for a period of time.
The restaurant says it had to close for 21 days.
It wants the Maharashtra government to pay about ₹50.62 lakh for the money it says it lost.
The Bombay High Court had already ordered the licences restored.
The State government has been given one week to respond to the money claim.
The Bombay High Court directed Maharashtra’s government to respond to Hotel Pawan’s ₹50.62 lakh compensation claim.
The Navi Mumbai restaurant said licence suspensions forced it to close for 21 days from July 14 to August 3.
Its audited calculation used June 2026 sales to estimate losses at ₹50,62,166.59.
The restaurant’s food-safety compliance reportedly rose from 63% to 100% after deficiencies were rectified.
The court had quashed the suspensions and ordered licence reinstatement; the State received one week to reply.
- Who
- Hotel Pawan Bar & Restaurant, the Maharashtra government, the Food and Drug Administration, and the Bombay High Court.
- What
- The court directed the State to respond to Hotel Pawan’s ₹50.62 lakh compensation claim for alleged losses caused by licence suspensions.
- Where
- The case was heard by the Bombay High Court and concerns the restaurant in Belapur, Navi Mumbai.
- When
- The court’s direction was reported on August 24, 2026; the claimed closure lasted from July 14 to August 3.
- Why
- The restaurant says continued suspension of its food and foreign liquor licences forced a 21-day closure and caused financial losses.
Restaurant’s Position
State’s Position
Responsibility for losses
Restaurant’s Position
Hotel Pawan says the continued licence suspension was arbitrary because it had achieved 100% compliance and caused a forced 21-day closure, resulting in ₹50.62 lakh in losses.
State’s Position
The State has not yet stated its substantive position on the compensation claim and requested one week to respond to the restaurant’s affidavit.
Legal basis for compensation
Restaurant’s Position
The restaurant argues that constitutional courts can award compensation when arbitrary State action causes serious prejudice and violates natural justice, citing Supreme Court precedents.
State’s Position
The government will specifically respond to the compensation claim and the alleged financial loss caused by the authorities’ actions.
Key facts
- Compensation sought
- ₹50,62,166.59, or approximately ₹50.62 lakh
- Claimant
- Hotel Pawan Bar & Restaurant, Belapur, Navi Mumbai
- Closure period
- 21 days, from July 14 to August 3
- Initial food-safety compliance
- 63% during the June 29 inspection
- Later food-safety compliance
- 100% during the July 14 re-inspection
- Loss calculation
- Based on June 2026 sales of ₹69,90,611 over 29 working days
- State response deadline
- The government was granted one week to file its reply
Sources
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