"A holder of Public office is expected to uphold public trust. He should have been more careful and responsible. He is the Minister of Prohibition..." the division bench said in the ruling on Friday.
Residents had moved the HC against the license issued to the bar, and when a single judge ruled in the residents' favour, the bar owner moved a division bench. But the bench also upheld the order.
Naik, an NCP Minister, had overruled the Collector, adverse police report and Excise Commissioner's decision while granting liquor licence to the bar.
"The suggestion is that let such licences be issued and you have no voice in issuance of the same...The learned Minister's view of the prohibition law can certainly not be taken and ought not be and possibly is not the view of the State," the bench of Justices S C Dharmadhikari and M T Joshi said.
If the state were to adopt the Minister's view, "that would certainly give rise to conflicts and tension within society... That means, nobody working or residing in cities and colonies can complain about permission for setting up hotels, liquor shops, beer bars, etc...They can only approach and complain to the authorities after such activities commence and are carried out," the judges said.
"Power and discretion cannot be exercised as per whims and fancies...If the orders of the nature passed....If discretionary power has not been exercised bearing in mind public interest, then, while striking down the act and order, it is equally the duty of the Court to remind the State of the doctrine of Good Governance.
"If the order or opinion of the learned Minister is to be taken as a view of the State Government, then there is likelihood of liquor licences being granted for the asking even if there are large scale complaints from the public," said the High Court.