The terms and conditions of the agreements between the property owners and M/s Popular Spirits are different. However, a common order is presently being passed as the directions being passed today, would be common to all the writ petitions: Delhi High Court



A set of nine petitions had been filed by the Petitioners respectively who sought de-sealing of their properties which were sealed by the Department of Excise, GNCTD due to non-payment of license fees by their Lessee/Tenant (Respondent No.3- Popular Spirits LLP). The Petitioners who are the owners of the property further seek directions to the Respondents to dispose of the stocks lying in their properties as also vacant and peaceful possession of their properties. Matter before the JUSTICE PRATHIBA M. SINGH.


The case of the property owners was that their premises were let out to Respondent No.3 (M/s. Popular Spirits LLP), which was a license holder under the now scrapped Excise Policy which was valid till 31st August, 2022.

M/s Popular Spirits had taken all the properties on rent for running licensed wine and beer shops. The terms and conditions between the property owners and M/s Popular Spirits are different.

The properties have been sealed by the Excise Department due to the fact that M/s Popular Spirits failed to pay the entire excise amount which was due to the Department.

The owners of the property pray for de-sealing of their properties.

M/s Popular Spirits had no possession of a license as of 31st August, 2022 for the sale of liquor and the properties were sealed prior to the mentioned date.

Orders were passed from time to time in all the matters on different dates and these orders state that the Petitioners could not be made to suffer due to the dispute between M/s Popular Spirits and the Excise Department.

Petitioners are property owners who have given their properties on rent and haven’t received any for the last several months. Ld. Counsels appearing for the Petitioners also pointed out that the owners were being saddled with electricity and other dues as well.

The firm M/s. Popular Spirits, has three partners. Mr. Sahil Arora (30%, with capital contribution of Rs.50,000/-) and Mr. Ram Diya (45%, with capital contribution of Rs.6.50 crores ) appeared before the Court. It was submitted that Mr. Mohit Singh (25%, with capital contribution of Rs.50,000/- ) was aware of these proceedings and was avoiding appearance before the Court.

Mr. Ram Diya, mentioned that the total purchase price of the stock lying in these retail vents was approximately Rs.10 crores and the retail selling price of the entire stock would be over Rs.24 crores.


The Court noticed that the Petitioners are property owners who have given their properties on rent to M/s Popular Spirits and are in fact not stated to have received rent for the last several months.

The Court issued bailable warrants of a sum of Rs.25,000/- with one surety be issued against Mr. Mohit Singh.

The Court directed the concerned officials of the Excise Department under the supervision of an Asst. Commissioner of Excise to de-seal each of the properties in the following manner:

  • Inventories would be prepared under the supervision of the Asst. Commissioner with the help of his team in the concerned areas. A comprehensive status report shall be filed after an inspection by the mentioned officer.
  • Subsequently, the entire stock of the liquor found at each premises would be transferred to a warehouse identified by Mr. Ram Diya, or M/s Popular Spirits LLP and this would have to be identified within 7 days.
  • Maintenance and other payments qua the properties shall be borne by M/s Popular Spirits LLP, at the current stage, since majority ownership of the profit and loss in the firm is of Mr. Ram Diya. The payment by Mr. Ram Diya by himself or on behalf of the firm, M/s Popular Spirits LLP would be subject to further orders of this Court.
  • Failure in identifying a warehouse for stocking of the inventoried liquor, the Excise Department should make arrangements for the storage of the stock and would be required to file the expense statement of such warehouse, on the next date of hearing.
  • After the transfer of stock to the destination warehouse, the same would be sealed by the Assist. Commissioner and a complete inventory shall be placed before this Court.
  • The Petitioners, who are the property owners, were required to be present during the inventory preparation to ensure that the inventory was prepared in a fair and transparent manner. The partners of M/s Popular Spirits LLP or their representatives could also be present at the time of preparation of inventory and transfer of stock.
  • Subsequently, the properties of the Petitioners shall be de-sealed by the Excise Department.

Upon the stock being moved, possession of the properties will be handed over to the concerned Petitioners.

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