(1.) THE petitioner carries on business in the name and style of M/s. Hotel Sunraj situate at Bandra, Bombay, as Sole Proprietress thereof. The said restaurant is situate at a distance of about 65. 54 Sq. metres from St. Elaisis School and the Church.
(2.) ON or about 7th August 1987, the petitioner made an application to the Collector of Bombay, Prohibition and Excise Department for issue of a licence popularly known as `permit Room Licence (i. e. F. L. III Licence) under Rule 45 of the Bombay Foreign Liquor Rules, 1953 for sale of foreign liquor etc. at the abovereferred restaurant. The Deputy Superintendent of Prohibition and Excise by name of Shri Ghodke visited the restaurant and made his report to the Superintendent of Prohibition and Excise. On 9th December 1987, the Government of Maharashtra informed the Commissioner of Prohibition and Excise that the Permit Room Licence known as FL-III Licence be granted to the petitioner on the conditions set out therein. Condition No. 2 prescribed by the Government of Maharashtra in the said Order of sanction reads as under :
(3.) ON 22nd February 1988, the Collector of Bombay issued a show cause notice to the petitioner calling upon the petitioner to show cause as to why the said licence should not be cancelled. It was stated in the said show cause notice that it had come to the notice of the Office of the Collector of Bombay that an educational and religious institution i. e. St. Elaisis School and Church existed within distance of 75 metres of the restaurant. There is no other dispute between the parties in respect of any other condition concerning the said Permit Room Licence or in respect of suitability of the premises or otherwise. By her Advocates letter dated 7th March 1988 and 9th March 1988, the petitioner replied to the said show cause notice. By the said reply letters, the petitioner contended that the condition mentioned in licence dated 14th December, 1987 regarding the distance between the restaurant premises and the compound of the Church and the School was arbitrary and against the Rules. It was alleged by the Department that the petitioner had placed her signature on certain papers whereby the petitioner had agreed to the imposition of all the terms and conditions of licence as prescribed by the respondents. After granting personal hearing to the petitioner, the Collector of Bombay passed an order cancelling the said licence on 24th March 1988. A copy of the said order is annexed as Exhibit `f to the petition.