JUDGMENT

CHINNAPPA REDDY, J.:— This case has made political history, but those concerned for the Rule of Law must remain unmindful and unruffled by the ripples caused by it. The legality of the action of the Government of the State of Karnataka in awarding contracts for bottling arrack to the appellants and others was questioned in the High court of Karnataka and the order of the State Government was struck down on the ground that it was unlawful, arbitrary, capricious, in flagrant violation of the rule of law and as shocking the judicial conscience. Some of the persons, to whom the bottling contracts had been awarded by the Government, have preferred these appeals under Art. 136 of the Constitution.

2. By general concurrence of opinion since days of yore, manufacture and sale of intoxicating liquor has always been considered to be a dangerous and obnoxious trade requiring the strictest vigilance and supervision and even prohibition. It is now firmly established that the Government is the exclusive owner of the privilege of manufacturing and selling intoxicating liquor and that the Government may farm out these privileges for the purpose of raising revenue. The legislatures of the v