A bench headed by Justice Vikramjit Sen reserved the verdict after the counsel for the state and the Kerala Bar Hotels Association concluded their arguments in the case.
The bar owners, in their plea, have contended that the policy of was discriminatory in nature and would lead to a situation where only the well-heeled have access to alcohol.
However, Kerala government had argued that the decision taken by the state not to renew licenses was a policy decision.
The state government's decision was a part of its policy to make Kerala a liquor-free state by 2023.
Also Read
The private bar owners have contended that this policy of "partial ban" was discriminatory in nature.
Attorney General Mukul Rohatgi, appearing for the bar owners, said this policy will lead to a situation where only the well-heeled have access to alcohol.
On October 30, 2014, the Kerala High Court had upheld the the state government's decision to close down more than 700 bars, but had exempted heritage and four-star hotels.