Natural justice required before liquor licence cancellation; writ relief remained available despite an alternative statutory appeal.

Cancellation of a liquor licence for alleged breach of licence conditions under Section 31(1)(b) requires the authority to act judicially and comply with natural justice, including notice and an opportunity to meet the allegations before adverse action is taken; on the stated facts, cancellation without hearing was invalid. The existence of an alternative statutory appeal does not operate as an absolute bar to Article 226 relief, and writ interference remains available where the impugned action is vitiated by denial of natural justice; on that basis, the available appeal did not prevent certiorari.

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Issues: (i) Whether cancellation of a liquor licence for alleged breach of licence conditions under Section 31(1)(b) could be made without notice and opportunity of hearing. (ii) Whether the existence of an alternative statutory appeal barred relief under Article 226.

Issue (i): Whether cancellation of a liquor licence for alleged breach of licence conditions under Section 31(1)(b) could be made without notice and opportunity of hearing.

Analysis: The power to cancel a licence on the ground of breach of its terms requires the authority to determine whether the alleged breach has in fact occurred. Since cancellation deprives the licensee of the right to carry on business, the nature of the power is such that it must be exercised judicially. That necessarily attracts the principles of natural justice, including notice and an opportunity to meet the allegations before adverse action is taken.

Conclusion: The cancellation without hearing was invalid and void, and this issue was decided in favour of the petitioner.

Issue (ii): Whether the existence of an alternative statutory appeal barred relief under Article 226.

Analysis: The rule requiring exhaustion of alternative remedies is one of policy and discretion, not an absolute bar. Where the impugned action suffers from denial of natural justice, the High Court may still exercise writ jurisdiction and grant certiorari.

Conclusion: The alternative remedy did not bar interference, and this issue was decided in favour of the petitioner.

Final Conclusion: The impugned order cancelling the licence was quashed because it was made in breach of natural justice, and writ relief was maintainable despite the appellate remedy.

Ratio Decidendi: Where a statutory authority is empowered to cancel a licence on proof of breach of its terms, it must act judicially and comply with natural justice before adverse action is taken, and denial of such hearing justifies writ interference notwithstanding an available appeal.

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