Judgment

JUDGMENT :- The State of Andhra Pradesh and its officers of the Excise Department have challenged the judgment of a Division Bench of the Andhra Pradesh High Court by special leave. Under R. 3 of the Andhra Pradesh Excise (Lease of Right to Sell Liquor in Retail) Rules, 1969, framed under the Andhra Pradesh Excise Act, 1968, the right to sell liquor in retail was being granted by auction and such lease was ordinarily for a term of one excise year commencing from October 1. In Sept., 1982, a policy decision was taken and a proviso was added to R. 3(1) which authorised grant of license in favour of the Toddy Tappers Co-operative Societies for operating toddy shops within grade I and grade II municipalities of the State for a period of five years at a time effective from Oct. 1, 1982. Under the Scheme, four Tappers Co-operative Societies, each of which is a respondent in the respective appeals, were given the privilege for a term of five years effective from Oct. 1, 1982. In Aug. 1983, that Rule was amended and there was a reversion to settlement on annual basis. Thereupon notices were issued to the four Tappers Societies each of which had already obtained lease for a term of