Court Prevents Coercive Action Against The High Tribe, Emphasizes Compliance with Statutory Provisions
In a significant judgment, the Madhya Pradesh High Court has restrained the State authorities from taking coercive action against M/s The High Tribe, a hospitality firm in Rewa, for serving herbal, tobacco-free, and nicotine-free hookah in its restaurant. The verdict, delivered by Justice Himanshu Joshi, underscores the protection under Article 19(1)(g) of the Indian Constitution, which guarantees the right to trade and business, provided statutory compliance and reasonable restrictions are maintained.
The case arose when the petitioner, The High Tribe, faced threats of closure and license cancellation by the respondent authorities, who argued that hookah services were impermissible. The petitioner contended that their establishment strictly adhered to the legal framework, maintaining a segregated smoking zone and serving only non-tobacco hookah. The petitioner argued that such services should not attract a blanket prohibition, as there was no statutory bar against herbal hookah.
The court meticulously examined the statutory provisions under the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply, and Distribution) Act, 2003 (COTPA), and its applicability. It concluded that the prohibition under COTPA pertains only to tobacco-based products, not extending to herbal, nicotine-free alternatives unless evidence of misuse is presented.
Justice Joshi highlighted the importance of public health and affirmed the authorities' right to inspect and enforce compliance. However, he emphasized that regulatory actions must not extend to prohibiting lawful activities without explicit statutory support. The court directed that no coercive action should be taken against the petitioner, provided they comply with all relevant laws and regulations.
The court's decision includes several directives to ensure compliance:
- The petitioner must adhere to all statutory provisions, including those under COTPA and related rules.
- The establishment must maintain proper segregation of smoking and non-smoking areas and comply with all safety norms.
- Authorities are permitted to conduct inspections to verify compliance, and the petitioner must cooperate fully.
- Any violation of statutory provisions or conditions may lead to suspension or cancellation of licenses, with due process followed.
This ruling provides significant relief to businesses in the hospitality sector, emphasizing that while public health regulations are paramount, they must be balanced with the rights to conduct lawful business activities.
Bottom line:-
Serving herbal, tobacco-free, and nicotine-free hookah in compliance with statutory provisions does not warrant a blanket prohibition by authorities unless there is a statutory bar or evidence of misuse.
Statutory provision(s): Article 19(1)(g) of the Constitution of India, Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003, Sections 3(a), 3(n), 3(p), 4, Cigarettes and Other Tobacco Products Rules, 2004, Prohibition of Smoking in Public Places Rules, 2008, Cigarettes and Other Tobacco Products (Madhya Pradesh) Amendment Act, 2023.
