( 1 ) HEARD Sri Prasanna Kumar, counsel representing Sri Amarnath Goud, the learned counsel for the petitioners and sri Chandraiah, the learned Government pleader for Excise.

( 2 ) THE facts of the case are simple. The Writ Petition is filed for a writ, order or direction declaring Cr. No. ES/c/8357/98, dated 7-9-2001 and 2-8-2001 of 1st respondent as illegal, arbitrary and to set aside the same and direct the respondents to permit the petitioners to carry on the business upto 30-9-2001 and further renew the licence from 1-10-2001 onwards by suspending the operation of Cr. No. ES/c/ 8357/98, dated 7-9-2001 and 2-8-2001 of 1st respondent and pass such other suitable orders.

( 3 ) THE petitioners filed the Writ Petition mainly aggrieved of the proceedings of the 1st respondent dated 2-8-2001 wherein it was stated as follows:-"hence under the above circumstances by virtue of powers vested in me under clause (b) of sub-section (1) of Sec. 31 of the P. Excise Act 1968,i, P. Sanjeeva prasad Proh. and Excise Superintendent, ranga Reddy District, being the licensing authority do hereby cancel the licences bearing No. 465, dated 4-12-1996 for counter bearing Nos. 4 and 2 valid upto 30-9-2001 issued in favour of Sarvasri K. Srisailam s/o. Hanumaiah and B. Yadaiah, s/o Kistaiah, R/o. Bakaram Village of moinabad, Rangareddy District under tft scheme with immediate effect. The order of cancellation of licences is sent herewith in duplicate. They should retain the original and return the duplicate copy duly acknowledging the receipt of the original with dated signatures. "it is stated in the affidavit that licence number in respect of 1st petitioner is 465, Counter No. 2 licence dated 4-10-1996 and valid upto the end of September 2001. The 2nd petitioner s licence number is 465, counter No. 4, dated 4-10-1996 and valid upto the end of September 2001 and both are having valid licences for selling toddy at bakaram Village toddy shop and the petitioners have been selling pure toddy and have been conducting the business without violating the terms and conditions of the licences and the provisions of A. P. Excise act and Rules and the Policy. It is further stated that a case was registered in P. R. No. 241/97-98, dated 16-8-1998 by prohibition and Excise Inspector, Excise station, Chevella in respect of the petitioners TFT license counters Nos. l and 8 on an allegation that the toddy sold is adulterated with Diazepam and on the same cause of action the case had been taken on file and the same was numbered as s. C. No. 29/2000 on in the Court of i Additional Sessions Judge, Ranga Reddy at l. B. Nagar, Hyderabad and the writ petitioners were acquitted by Judgment dated 6-4-2001. It is further stated that without waiting for the result of or finality of the legal proceedings, the licences for the remaining period had been cancelled, valid upto 30-9-2001, vide cancellation of license orders dated 2-8-2001 and the said cancellation is a predetermined one and no doubt several other allegations also had been made, which may not have much relevance for the purpose of disposal of the present Writ Petition.

( 4 ) A counter-affidavit is filed taking as tand that the writ petitioners had intentionally involved in adulteration of toddy with Diazepam, which is injurious to public health and thereby contravened rule 5 of A. P. Excise (Tapping of Trees and toddy Shops, Special Conditions of licences) Rules, 1969 punishable under section 37 of the A. P. Excise Act, 1968. Therefore as precautionary and temporary measure to prevent the supply and sales of adulterated toddy the licences were suspended on 11-11-1998 pending enquiry- criminal action and cancellation of licences in the interest of public health and orders were served on them on 9-3-1999. The request made by the licensee to send the second sample of toddy in the case to State food Laboratory, Nacharam for independent analysis was also considered in pursuance of the orders of the Ho