JUDGMENT

B.P. Jeevan Reddy, J.-The several orders made by a learned Single Judge of the Madhya Pradesh High Court in a writ petition, impugned herein, made in total disregard of the basic norms governing the exercise of writ jurisdiction by the High Court, disclose a disturbing state of affairs affecting public finances. The facts stated hereinafter speak for themselves.

2. For the year 1995-96 (commencing on April 1, 1995 and ending with June 30, 1996), public auctions were held for grant of licences for country liquor as well as Indian made foreign liquor (IMFL) in Madhya Pradesh, sometime in the months of February-March, 1995. The respondent-firm was the highest bidder in respect of Gwalior Township Group No.2, comprising twelve shops of country liquor and seven shops of IMFL, in a sum of Rs.8.52 crores. Its bid was accepted. The appellants say that according to the rules and the conditions specified in the auction notification, any person desiring to participate in the auction shall have to pay an amount equivalent to twenty percent of the amount of the licence fee of the preceding excise year. If his bid is accepted, he has to deposit an amount equivalent to 1/6th of the total b