JUDGMENT:— Special Leave granted.

2. The appellant is prosecuted for contravention of Section 7 of the Essential Commodities Act i.e. for carrying on his business without licence. He has unsuccessfully approached the High Court for quashing the proceedings and he is, therefore, now before us.

3. It is not disputed that the appellant initially had licence for carrying on his business up to 1983. On 19 April, 1984 the Bihar Trade Articles (Licences Unification) Order, 1984 was brought into force. Consequently, the appellant applied for the grant of new licence under the said order, with the payment of licence fees and he was allotted licence No. 100/ 84 and with the allotment of the new licence number the appellant was not left with any doubt in his mind that he had no licence. The licensing authority neither rejected his claim nor pointed out any defects in his application. Bona fide believing that he has not done any illegality the appellant went on every year applying for licence according to law with the payment of licence fees. The Authority also went on accepting the applications and the licence fees but not granted the licence sought for.

4. The authority however, prosecuted the