Judgment

DUA, J. :- This appeal is by special leave. The appellant assails the order of the Judicial Commissioner, Tripura dated June 25, 1971 dismissing his petition under Art. 226 of the Constitution challenging the order of the Collector of Excise, Tripura, dated July 5, 1970.

2. The appellant was granted licence for the period April 1, 1963 to March 31, 1966 for running a ware-house for supply of country liquor to excise vendors in the territory of Tripura. The Bengal Excise Act, 1909 (hereinafter called the Act) had been extended to that territory on August 1, 1962. The appelant s licence was subsequently extended for a further period of two years ending March 31, 1968. On November 6, 1967 the appellant applied to the Excise Collector praying that he should be permitted to continue the supply of country liquor for a period of five years commencing April 1, 1968. The Collector recommended the appellant s case to the Government on November 18, 1967 for extension of his licence for a further period of only two years. On December 22, 1967 the Collector of Excise, Tripura, Agartala, wrote to the appellant that he had been appointed by the Chief Commissioner "a contractor for the supply of country liquor to the excise vendors for the territory of Tripura for five years i.e., from 1-4-68 to 31-3-73 at the existing rate i.e., Rs. 2.25 only being the cost of one L.P. litre of country liquor of 40 U.P. strength for sale to the excise vendors" of that territory from the Central Warehouse at Agartala. On January 13, 1968 the appellant was asked by the Collector of Excise to deposit Rs. 1,000/- as security and Rs. 2,500/- of licence fee for five years at the rate of Rs. 500/- per year. On March 13, 1968 the appellant was accordingly granted a licence to establish a warehouse for the storage in bond and wholesale vend of country spirit by import and for supply to the excise vendors in the territory of Tripura for five years commencing April 1, 1968 and ending March 31, 1973. It was granted by the Excise Collector.

3. The Committee of Estimates in their Fifth Report about the working of Excise Department in the territory of Tripura in general and about the procedure adopted in giving contract to the appellant for a period of five years from 1968 to 1973 in particular made some adverse observations criticising the method of appointment by means of selection because this method, according to the report, left loopholes for corruption. As a result of this report the Lt. Governor of Tripura on July 2, 1970 inserted R. 164-A in the Tripura Excise Rules of 1962 in exercise of the power conferred by S. 86 of the Act. According to the new rule, fees for licence for the wholesale vend of country spirit were required to be fixed by tender-cum-auction. On July 6, 1970 the Excise Collector issued the following order to the appellant;

"GOVERNMENT OF TRIPURA

OFFICE OF THE COLLECTOR OF

EXCISE"

No. 810/DM/EX.5(19)/70-71 dated, Agartala the 6-7-1970.

Whereas it has been decided by the Government of Tripura that the licenses for the wholesale of country spirit shall hence forwards be granted by the method of tender-cum-auction and to different persons for different specific areas as far as practicable, instead of the present system of selection of one licensee for the whole territory of Tripura, in the interests of excise revenue.

And whereas I, Sri Omesh Saigal, Collector of Excise, Tripura consider that for the aforesaid reason the license no. 1 dated the 13th March, 1968 issued to Sri Amar Chandra Chakraborty for the wholesale vend of country spirit in the Union Territory of Tripura for the period from the 1st April, 1968 to 31st March 1973 should be withdrawn.

Now, therefore, in exercise of the powers conferred on me under S. 43 of the Bengal Excise Act, 1909, as extended to the Union Territory of Tripura, I remit a sum of Rs. 20.84 equal to the amount of the fees payable in respect of the said license for 15 days and hereby give the licensee 15 days notice of