SHIVASHANKAR BHAT, J.

( 1 ) THIS appeal is by the State of Karnataka, which is the respondent in W. P. No. 16532/1986. The parties will be referred with reference to their rankings in the Writ Petition for the sake of convenience. The Learned Single Judge has issued a Writ directing the renewal of four licences issued to the petitioner earlier, under the provisions of the Arms Act, 1959 (shortly called 'the act' ). The facts in brief, which are summarised by the Learned Single Judge may be repeated hereinafter :

( 2 ) THE petitioner questioned the correctness of the order passed by the Government of Karnataka (Home Department) refusing to renew the four licences held by him which were valid upto 31-12-1984. It is not in dispute that these licences were granted to him to enable him to carry on business in the manufacture and sale of fire arms Stores situate at Sathyanarayanapet, Bellary. The Government being the Renewal Authority under the Act, the petitioner made an application for the renewal of these licences in accordance with the provisions of Section 15 of the Act. The state Government made an order on 13-12-1985 rejecting his application for renewal. This order was challenged by the petitioner in W. P. No. 19681/85 and this Court by its order dated 16-7-1986 set aside the said order on the short ground that the petitioner was not afforded an opportunity of being heard, before the said order was made, depriving him of his licences. Accordingly, the Government heard the petitioner on 20 8-1986 and the impugned order was made by the Home Secretary to the State Government on 27-8-1986.

( 3 ) THE petitioner was an employee of the State Government till about 1965. He is a Diploma holder in Mechanical Engineering and was employed as an Instructor in the Government polytechnic College, Bellary, in the year 1956. It is common ground that even during his employment in Government service he was acting as a Technical Adviser to his brother-in-law one Jaya Vittal who had obtained from the Government of Andhra Pradesh a licence in the year 1964 in Form No. XI bearing Licence No. 25/1964 under Section 5 (1) of the Act read with Rule 21 of the Rules framed thereunder for the purpose of conversion, repair and sale of arms and ammunitions. It transpires that in view of the petitioner's technical qualifications he was taken as a sleeping partner by his brother-in-law. There is some dispute whether the petitioner had obtained permission from the Director of Technical Education for the purpose of tendering technical advice to his brother-in-law. But, it is not very material to go into the dispute relating to the petitioner's entry into Fire Arms business since the authorities, viz. , the Central government and the State Government had granted valid licences to the petitioner in Form No. 9 ever since 1969 in which year the petitioner took over the business as the sole proprietor and the licence granted to the firm of Dwaraka Arms Stores continued right upto 1984 without any interruption. In this appeal before us, no contention was raised by the Counsel for the respondent-Government, on this question.

( 4 ) AFTER petitioner took over the business as the sole proprietor, he obtained another licence from the Government of Karnataka in Form No. XI for the purpose of conversion, repair, test and sale of arms and ammunitions at Bellary in the year 1968. The said licence was in Form No. XI and numbered as Licence No. 3/1968. The business under the said licence continued till 1977. Subsequently, this licence was converted into licence in Form No. IX pursuant to the policy of the Central Government which treated the conversion-licence in Form No. XI as licence for manufacturing arms and ammunitions by granting Form No. IX licence. The petitioner made the necessary application for grant of manufacturing licence on the basis of Form No. XI licence held by him and the Government of India, after making the necessary inquiries in this regard, granted hi

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