JUDGMENT

K. RAMASWAMY, J.:- In this writ petition under Art. 32 of the Constitution, the petitioner, a partnership firm seeks reliefs of mandamus to direct the State Government and the Commissioner of Excise of M.P. to allow the petitioner to set up a distillery pursuant to the cabinet policy dated December 30, 1984 and to grant D-2 licence; to declare the letter dated February 8, 1982 as unconstitutional, illegal and of no effect in law and to direct the respondents Nos.1 and 2 to grant a licence to manufacture potable alcohol within the State of Madhya Pradesh and to grant D-1 licence to supply country made liquor, etc. This case has behind it chequered history which is necessary to adumbrate.

2. In the State of M. P. v. Nandlal Jaiswal, (1987) 1 SCR 1 this court considered the legality of the policy, the subject-matter in the writ petition. It was held therein that nine distilleries in the State of Madhya Pradesh including the one at Ujjain were set up on the lands and buildings belonging to the Government. The plants and machinery therein initially, were of the Government, but in course of time the licensees installed or replaced the plants and machinery and became the owners. The petitioner and its predecessors had licence for the distillery at Ujjain for well over 40 years to manufacture rectified spirit. The last of the licences held by the petitioner was for the years April 1, 1976 to March 31, 1981. The period of licence was at that time for five years. The practice as per the provisions of the M. P. Excise Act 1915 for short the Act and M.P. Distilleries, Breweries and Warehouses Rules for short the rules issued in exercise of the powers under S.62 was to call for the tenders to manufacture and supply the rectified spirit or denatured spirit, spirit (country made) to the retail vendors within the area attached to the distillery. Rajdahani Distillers Corporation, for short RDC became the successful tenderer for the licensing period starting from April 1, 1981 to March 31, 1986. The petitioner challenged in Misc. Petition No. 701 / 81 in the M.P. High Court under Art. 226. Initially stay was granted, but later it was vacated on August 20, 1981. Licence was granted for the period starting from August 25, 1981 to March 31, 1986 to RDC and the distillery, plant and machinery at Ujjain was handed over to RDC on August 28, 1981. Thereafter the petitioner filed another writ petition No. 169/82 on March 16, 1982 for redelivery of the plant and machinery and the warehouses and other consequential reliefs. That writ petition was dismissed by the High Court against which Civil Appeal No. 5483/ 83 was filed, which is just now disposed of. The petitioner had applied for grant of licence on February 19, 1982 and he reiterated his request in number of reminders including one on November 3, 1986. In the interregnum the Govt. changed the policy by a Cabinet Sub-Committee policy decision dated December 30, 1984 under which they decided to grant licence to the existing licensees of the distilleries and that they should construct the factories at their expenses on the land allotted by the State Govt. or acquired and allotted by the State Govt. and that they shift the business to new factories and the licence would be for a period of five years. Calling in question of that policy several writ petitions including the one by the petitioner were filed in the M.P. High Court. The Division Bench partly allowed the writ petition and quashed part of the policy decision. Against it appeals and special leave petitions were filed by the State and the unsuccessful petitioners including the petitioner. It was disposed of by this court reported in Jaiswals case (AIR 1987 SC 251). During the hearing of the writ petition, the Attorney General of India conceded that if the petitioner makes any application for grant licence it would be considered by the State Govt. and be disposed of quickly. That concession was noted and the argument was founded thereon to