M. H. S. ANSARI, J.

( 1 ) THE State Government by its G. O. Rt. No. 216, Revenue (Excise-II) department, dated 11-2-1994 sanctioned an amount of Rs. 3,06,50,000/- (Rupees Three Crores Six Lakhs and fifty thousand only) as Remission of Excise rentals for the months of October, 1992 and November, 1992 worked out on the basis of closure of arrack shops in the State. It is observed in the said G. O. dated 11-2-1994 that the anti-arrack agitation took a violent turn in October 1992 and reached its peak in November, 1992. As a result, arrack shops were forcibly closed during the period when Contractors were just commencing their business at the beginning of the Excise Year immediately after the auctions. The Contractors were persuaded to somehow continue their business on the promise of help subsequently. They had therefore continued their business. On a report submitted by the Commissioner of Excise, that the Arrack contractors affected by anti-arrack agitation have sought remission of rentals for the period of agitation, the demand of the contractors was examined by the Cabinet Sub-Committee and thereafter by the Government. It was decided to grant remission of rentals to the extent of 20% (i. e. , l/5th) of the rental for the actual shop days for which arrack shops were closed during the months of October, 1992 and November, 1992 due to anti-arrack agitation. The government in its said G. O. Rt. No. 216, dated 11-2-1994 while granting the said remission also issued the following guidelines for the payment:" (A) In case the entire rentals and other Excise dues have already been paid by the licensees, the amount of eligible remission as recommended above may be refunded to the Contractors; (b) In case the rentals or other Excise dues are still due to the Government from the licensee, the eligible remission may be adjusted towards the rental and other dues and the balance may be refunded; and (c) the refund may be effected in two equal instalments. The first instalment may be paid after 1-4-1994. The feasibility of giving the second instalment of refund before 31-3-1994 in the form of N. S. Certificates may be examined by the Commissioner of Excise. "

( 2 ) THE Contractors Association - petitioner herein has filed the above Writ petition for a direction to the State to grant Remission of Rs. 34. 24 Crores in addition with the remission already granted by the Government in its aforesaid g. O. Rt. No. 216, dated 11-2-1994. According to the petitioners, an assurance was held out by the then Excise Minister that the Arrack contractors should continue their business and the Government would give them rebate of rentals based upon the closure of shops as reported by the local Excise officials. The petitioners claim that several arrack shops were looted and arrack was wantonly destroyed and the properties of the arrack contractors were also subjected to vandalism. According to the petitioners, the State Excise Commissioner issued instructions on 23-10-1992 for collection of 80% of the rentals from the arrack groups for the months of October, 1992 and November, 1992. The arrack Contractors expected that 20% remission of monthly rentals would be given through out the period from October, 1992 onwards. The Excise officials, however, forcibly collected the entire rental from October, 1992 onwards and the arrack contractors were forcibly made to lift the minimum guaranteed quantity of arrack. In some cases, Excise Officials also collected penal interest on the 20% shortfall of rentals for the period of October and november, 1992 and for delayed payment of rentals for the subsequent months during the Excise Year 1992-93. The Remission granted by the Government by the aforesaid G. O. Rt. No. 216, dated 11-2-1994, according to the petitioners is illusory besides being arbitrary and that the remission should have been given for the entire loss suffered by the Arrack Contractors and the collection of penal interest on delayed payments as also remission

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