( 1 ) THE petitioners are manufacturers of indian Made Foreign Liquor (IMFL ). They have distilleries in the State of Andhra pradesh licensed to manufacture IMFL under the provisions of A. P. Distilleries rules, 1970. They manufacture various brands of IMFL.

( 2 ) THE 2nd respondent is a Corporation wholly owned and controlled by the State of A. P. and is an instrumentality of the state. Consequent upon the enactment of the A. P. (Regulation of Wholesale Trade and Retail Trade in Indian Liquor, Foreign liquor, Wine and Beer) Act, 1993 (Act 15/93) (for short the Act ), which replaced a. P. Ordinance No. 5 of 1993, the 2nd respondent has been invested with the exclusive privilege of importing, exporting and carrying on wholesale trade and distribution in Indian Liquor, Foreign liquor, Wine and Beer on behalf of the State of A. P. throughout the territory of the State. All other persons are excluded the privilege of importing, exporting and supplying the same/in wholesale or distributing the same for the whole or any part of the State (Sec. 4 of the Act ). This privilege conferred on the 2nd respondent is fortified by an appropriate statutory prohibition (Sec. 7 of t