Vilas V. Afzulpurkar, J.

1. Fourth respondent in WP.No.3250 of 2013 is the appellant and the fourth respondent, in this appeal, is the writ petitioner in the above writ petition.

2. For the sake of convenience, the appellant is described as tenant and the fourth respondent is described as landlady.

3. Landlady filed WP.No.3250 of 2013 questioning the proceedings of the third respondent – Prohibition and Excise Superintendent, Nellore, renewing 2B license for running bar and restaurant in favour of the appellant for the excise year 2012-2013. The said order was questioned by the landlady, inter alia, on the ground that neither there is a subsisting lease in favour of the tenant nor the landlady has authorized the tenant to remain in possession for the period for which renewal is granted. By the impugned order dated 25.06.2013, the writ petition was allowed by the learned single Judge and questioning the said order, the tenant is in appeal before us.

4. We have heard elaborate submissions of Mr. C. V. Mohan Reddy, learned senior counsel appearing in support of the tenant and Mr. B. Adinarayana Rao, learned senior counsel appearing in support of the landlady as well as the learned Government Pleader for Prohibition and Excise for the official respondents 1 to 3.

5.In order to appreciate the respective contentions, it would be appropriate to note the chronological events, as under, which preceded the impugned renewal of license:

(a) The landlady is, admittedly, owner of premises bearing No.70-2-147 (old D.No.17/294), Aachari Street, Nellore. A portion of that premises was given on lease for one year from 01.07.2006 to 30.06.2007 to the appellant/tenant for running Saritha Bar and Restaurant. Accordingly, the tenant was granted a license under Form – 2B under the Andhra Pradesh Excise (Grant of License of Selling by Bar and Conditions of License) Rules, 2005 (for short ‘the Rules’).

(b) After expiry of the initial period of license, the tenant continued in the leasehold premises with the consent of the landlady for one year from 01.07.2007 to 30.06.2008. For the following excise year 2008-2009, even in the absence of lease, the second respondent by proceedings dated 02.07.2008 directed the third respondent to grant license subject to tenant producing a lease deed within a month. The aforesaid order was questioned by the landlady in WP.No.14797 of 2008 and by order dated 10.07.2008, this Court suspended the said proceedings. The tenant filed an application, being WVMP.No.2210 of 2008, seeking vacation of the said order. However, by order 27.08.2008, learned single Judge declined to vacate the interim order and by dismissing the vacate petition, interim order dated 10.07.2008 was made absolute. Questioning the same, the tenant preferred WA.No.1359 of 2008, which was dismissed by order of the Division Bench dated 07.11.2008, directing hearing of the writ petition along with WA.No.567 of 2008 involving similar question.

(c) In the meanwhile, the landlady filed O.S.No.614 of 2008 before the I Additional Junior Civil Judge, Nellore seeking eviction of the tenant. The tenant filed WP.No.25076 of 2008 questioning the refusal by the third respondent – Prohibition and Excise Superintendent, in granting renewal of license.

(d) After dismissal of WA.No.1359 of 2008, the landlady and the tenant entered into a settlement by which the challenge of the landlady in WP.No.14797 of 2008 and of the tenant in WP.No.25076 of 2008 was settled permitting the tenant to remain in the premises till 01.07.2010. Consequently, by order dated 22.12.2008, the landlady’s WP.No.14797 of 2008 and tenant’s WP.No.25076 of 2008 were disposed of duly recording the undertaking of the tenant that he would vacate the premises by 01.07.2010. Consequent upon the aforesaid settlement, the eviction suit, O.S.No.614 of 2008, filed by the landlady was also withdrawn and Form – 2B license was renewed in favour of the tenant till 01.07.2010.

(e) The aforesaid a