In Brief
The State of Bihar sought to appeal against a High Court order granting refund of licence fee to a sugar company that held an exclusive privilege for country liquor manufacture in PET bottles. The High Court had found the sealing of the company's premises during the licence period to be illegal and awarded a refund. The Supreme Court held that the company had been given proper notice and opportunity to explain itself before the penalty was imposed. Since the penalty was based on a reasoned decision, the consequent sealing was lawful. The company was not entitled to refund of licence fees for the sealing period without a prior adjudication finding the sealing itself unlawful."
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