Madhya Pradesh High Court

Conditional unsealing of premises permitted subject to undertaking for time-bound rectification of fire safety deficiencies.

Airplaza Retail Holdings Private Limited vs The State Of Madhya Pradesh

Madhya Pradesh High CourtJUDGMENT: April 07, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner, a retail company, challenged a challan dated 27.03.2026 and a subsequent order dated 30.03.2026 cancelling its Trade License and sealing its business premises.

Source reference: p. 1, para. 2

Following a joint inspection, the Respondents had issued a notice granting the Petitioner fifteen days to rectify deficiencies related to fire safety and hygiene.

Source reference: para. 2

However, the authorities re-inspected the premises within two days and proceeded to seal the store, alleging insufficient progress.

Source reference: para. 2

The Petitioner contended this was a highhanded action in violation of natural justice, while the Respondents maintained the action was necessary in the "larger interest of public" due to recent fire incidents in the city.

Source reference: para. 3, 4
02

Issues

1. Whether the Respondents’ action of sealing the premises and cancelling the trade license before the expiry of the 15-day notice period was arbitrary and in violation of the principles of natural justice.

Source reference: para. 2

2. Whether the Petitioner could be granted interim relief to continue operations subject to an undertaking to cure the identified safety and hygiene deficiencies.

Source reference: para. 4, 6
03

Law Applied

The Court balanced the administrative requirement of adhering to the Principles of Natural Justice, specifically the right to a reasonable period for compliance as stipulated in a notice.

Source reference: para. 2

The State’s duty to ensure Public Safety under municipal and fire safety regulations.

Source reference: para. 4

The Court exercised its discretionary power under Article 226 of the Constitution of India to grant conditional relief based on an undertaking, ensuring statutory compliance while preventing unnecessary loss of business and reputation.

Source reference: para. 6
04

Reasoning

The Court observed the procedural discrepancy where a fifteen-day compliance window was effectively curtailed to two days by the Respondents.

Source reference: para. 2

While the Petitioner highlighted the loss of reputation and business, the Respondents emphasized the urgency of fire safety in public spaces.

Source reference: para. 3, 4

The Court did not adjudicate on the final merits of the cancellation but sought a pragmatic resolution. It noted the Respondents' willingness to reopen the premises if corrective measures were taken.

Source reference: para. 4

Consequently, the Court determined that the interests of justice would be served by allowing the Petitioner to resume operations, provided a high-ranking officer of the company furnished a formal undertaking and Power of Attorney to rectify all deficiencies within a strict timeframe.

Source reference: para. 6
05

Holding

The seal of the Petitioner’s premises shall be opened upon the filing of an undertaking by the Assistant Store Manager, supported by a Power of Attorney or Board Resolution, by 08.04.2026.

The Petitioner is directed to cure all deficiencies in fire safety and hygiene as per the impugned notice by 15.04.2026.

Source reference: para. 6

The Respondents/Corporation are authorized to re-inspect the premises on the evening of 15.04.2026. If the work is found unsatisfactory, the Corporation is at liberty to take further coercive action in accordance with the law.

Source reference: para. 6
Madhya Pradesh High Court

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Airplaza Retail Holdings Private LimitedvsThe State Of Madhya Pradesh

Madhya Pradesh High Court · April 07, 2026

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