( 1 ) M/s. Cycle Equipments (P.) Ltd. , the petitioners, (C. W. 1284179) run a factory for manufacturing free- wheels of cycle in Kalkaji Industrial Estate. The factory is located in premises No. 8 Kalkaji, New Delhi. They were running the factory under a Municipal Licence issued under Section 416 read with Section 417 of the Delhi Municipal Corporation Act, 1957. This licence is required as the factory is in the city of Delhi. The object of the licence is to ensure that no objectionable industrial activity is carried on in densely populated city of Delhi. The other object is to see that no nuisance is caused to the inhabitants of the neighbourhood. Under the Master Plan for Delhi only light and small scale Industries are permitted in the city of Delhi. Light small scale Industries as described in the Master Plan do not emit large quantities of smoke or create noise and light nuisance.

( 2 ) THE first Municipal licence was issued in the year 1960-61. An application for the licence was moved in August, 1960. The application for licence was made for a light industry involving only "machine operations" for manufacture of free-wheels. The power required was 200 KW electri