Daffodils Hotels (Private) Limited and others Vs. L.K.G. Gunawardana and others – CA WRIT/364/2016-2016

In the case between Daffodils Hotels (Private) Limited and L.K.G. Gunawardana, Commissioner General of Excise, Sri Lanka, the court addressed the lawfulness of the refusal to renew a liquor license and the requirement for the petitioner’s business to relocate, including the exercise of discretion by Excise authorities under Excise Notification No. 902. It was held that the authorities acted within their legal powers by considering public objections and compliance with proximity regulations relating to schools and religious sites. The principle reaffirmed is that regulatory discretion, exercised based on credible public complaints and verified factual inquiries, must not be arbitrary or procedurally improper. Reliance was placed on relevant statutes and notices under excise regulations, wit