It never happened in my time nor were there ever any objections at the licence renewal hearings. We did have a few contrite re-engagements with people we'd refused checking if they were "barred for life".... If you refuse someone, and they go peacefull, but write a letter the next day, what do you say in reply...
It's the old tight-rope act; serve every dog and divil and eventually you won't have a business that's worth a toss and if you refuse people indiscriminately and without good reason, you'll suffer as well. We seemed to get it just about right a lot of the time.