( 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 the Act ). Section 6 enables regulation of retail trade in the aforesaid species of liquor, by appropriate rules to be made by the State government.

( 3 ) THE legislative history and the philosophy underlying the Act as set out in the statement of objects and reasons accompanying the Bill, enacted as the Act, reads as under:"statement OF OBJECTS AND reasons the Government have taken notice of the evils of consumption of intoxicating liquors and have been thinking of prohibiting the consumption of intoxicating liquors in pursuance of Article 47 of the constitution of India. The government had appointed a Sub- committee of the Cabinet to examine the entire matter relating to the prohibition on the consumption of toddy, arrack and liquor in the State. The said Committee has submitted a detailed report to the Government. The Government have carefully examined the said report and decided that the privilege of supplying in wholesale the Indian liquor, Foreign liquor, Wine and Beer in the whole of the State of Andhra Pradesh should be vested exclusively in the Andhra pradesh Beverages Corporation limited and that the right to sell the same in retail shall be auctioned by the state in the place of the present practice of granting licences. Government have also decided to cancel the existing licences for supplying in wholesale the Indian liquor, Foreign liquor, Wine and Beer and also the licences for selling the same in retail with effect from the appointed date in order to achieve the object of minimising in public interest their consumption, by making appropriate law, as a prelude to totally prohibiting the consumption of the same in the course of time. To achieve the aforesaid objective, government have decided to undertake legislation. As the Legislative Assembly of the state was not then in session having been prorogued and it was decided to give effect to the above decision immediately, the Andhra Pradesh (Regulation of Wholesale Trade and distribution and Retail Trade in Indian liquor, Foreign Liquor, Wine and beer) Ordinance, 1993 (Andhra pradesh Ordinance 5 of 1993) was promulgated by the Governor on the 21st July/1993 - Bill No. 9 of 1993. An act to provide for the taking over of the Wholesale Trade and distribution in Indian Liquor, Foreign liquor, Wine and Beer and to Regulate the Retail Trade thereof as a prelude to totally prohibit the consumption of intoxicating liquors. Whereas the Government have taken notice of the evils of consumption of intoxicating liquors and have been thinking of prohibiting the consumption of intoxicating liquors in pursuance of Article 47 of the Constitution of India; and whereas the Government have accordingly imposed ban on the sale of arrack in retail in Nellore district for the Excise Year 1992-1993; and whereas th