JUDGMENT

CHANDRACHUD, CJI..:— This is an appeal by certificate granted by the High Court of Punjab and Haryana under Art. 133 (1) (a) of the constitution in regard to its judgment dated March 12, 1968 in civil Writ No. 1376 of 1967.

2. On March 16, 1967 the Excise and Taxation Commissioner, Haryana, appellant No. 2 herein, announced by publication of a notice that excise auctions for the financial year 1967-68 will be held on March 27, 1967. The terms and conditions in regard to the auction of retail vends of country spirits were set out in a pamphlet issued along with the notice. Those terms and conditions did not accord with the rules then prevailing but were evidently announced so as to comply with the requirement of the new rules which were being brought into force. The amended rules issued by the Excise and Taxation Commissioner (Financial Commissioner) were published in the Government Gazette dated March 31, 1967 and came into effect on April 1, 1967.

3. In the auction held on March 27, 1967 for the retail vend known as "Biswan Meel", Sonepat, respondents offered the highest bid for a quota of 62,100 proof litters for which they became liable, under condition 14 (iii) of the auction, to pay an amount calculated at the rate of Rs. 17.60 per litre, that is to say, Rs. 10,92,960,00. On the bid being knocked in their favour, respondents deposited a sum of Rs. 45,527,50. being 1/24th of the total amount payable by them, by way of security for the due performance of the terms of the auction, as required by Condition No. 15 (1) of the auction and Rule 36 (22-A) of the Punjab Liquor Licence Rules, 1956 as amended. They started operating the vend from April 1, 1967.

3-A. The successful bidder who is granted licence for retail sale of country liquor is required by Condition no. 15 (ii) of the auction read with Rule 36 (23) (2), to pay the licence fee in 22 equal instalments, each instalment being payable before the 10th and 25th of every month, commencing on April 10. On the failure of the respondents to pay the instalments due for the periods ending with April 10 and 25, 1967, the Excise and Taxation Officer, Rohtak, gave them notice dated 15th and 25th April, 1967 calling upon them to make good the short-fall of Rs. 33,827.20 and Rs. 5,898.80 respectively, before April 20 and April 30, 1967. Since the respondents did not pay the amount, the Deputy Excise and Taxation Commissioner, Headquarters, Haryana, gave them a notice calling upon them to show cause, within two days of the receipt of the notice, why their licence should not be canceled under Sec. 36 (e) of the Punjab Excise Act, for their failure to comply with the terms of the auction in the matter of payment of the two instalments. By their reply dated May 12, 1967, the respondents stated that they were illiterate villagers, that the terms of auction were not explained to them, that the district of Rohtak was in the grip of a severe drought leading to a fall in the sale of liquor, that April being a summer month, the consumption of liquor was less as compared with the consumption during winter months and that, there was in fact no default on their part as alleged in the notice sent to them. On May 17, 1967, the Collector and Deputy Excise & Taxation Commissioner, Haryana, passed an order, after hearing the respondents, cancelling their licence under Section 36 (b) and (c) of the Punjab Excise Act with immediate effect and stating that the vend will be resold on May 23, 1967 at 10.00 A. M. in the office of the Excise and Taxation Officer, Rohtak, at the risk of the respondents.

3-B. On May 22, 1967 respondents filed a Writ Petition (No. 900 of 1967) which was dismissed by the High Court of Punjab and Haryana on May 26, on the ground that it was premature.

3-C. In pursuance of the order dated May 17, the "Biswan Meel" vend, Sonepat, was reauctioned on May 23, 1967, the highest bid received being of 15,000 litres, which in terms of money comes to Rs. 2,46,000.00 The difference bet