1. The petitioners are Stockists or 'A' Class licensees under the Rules framed in exercise of the powers conferred by S.31 of the Travancore Tobacco Act, I of 1087, and published in the Travancore-Cochin Government Gazette (Extraordinary) dated the 25th January 1951.

2. R.14 of the Rules provides that "the vend of tobacco of all kinds is prohibited throughout the State, except under a licence"; R.15 that the "licence for the vend of tobacco shall be of the following descriptions:

"(i) Stockist or 'A' Class license,

(ii) Wholesale or 'B' Class license and

(iii) Retail or'C' Class license'; and Rule 16(1) and (11):

(1) Holders of Stockist or 'A' Class licensees shall be entitled to purchase tobacco from any dealer within or without the State without any quantitative restriction. This class of licensees shall sell only to other 'A' Class licensees or to 'B' Class licensees.

(ii) The annual fee for these licenses shall be as follows: -

N. B: - For the purpose of calculating Stockist license fee in respect of tobacco preparations the cost price of the article will be taken into account The license fees will be realised only for the quantities brought in from outside the State."

3. The Travancore Tobacco Act, I of 1087, was continued in force by virtue of S.3 (1) of the United State of Travancore and Cochin Administration and Application of Laws Act, 1125 (which replaced Ordinance No.1 of 1124), and Art.372 (1) of the Constitution of India. S.3 (1) of the Act provides:

"Subject to the provisions of this Act, subject also to any alterations, amendments or repeals effected by the legislature of the United State or other competent authority before the commencement of this

Act, the existing laws of Travancore shall, until altered, amended or repealed by the Legislature of the United State or other competent authority, continue to be in force mutatis mutandis in that portion of the territories of the United State which before the appointed day formed the territory of the State of Travancore,"

and

Article 372 (1):

"Notwithstanding the repeal by this Constitution of the enactments referred to in Art.395 but subject to the other provisions of this Constitution, all the law in force in the territory of India immediately before the commencement of this Constitution shall continue in force therein until altered or repealed or amended by a competent Legislature or other competent authority."

4. The material portion of S.31 of the Travancore Tobacco Act I of 1087 under which the Rules were framed reads as follows:

"Our Dewan may, with Our sanction, from time to time by Notification in the Gazette, make Rules consistent with this Act,

(a) permitting absolutely or subject to the payment of any duty or fee or to any other conditions, and regulating, within the whole or any specified part of Travancore, the cultivation, manufacture, possession, transport, import, export and sale of tobacco."

5. Sub-section (2) of S.3 of the United State of Travancore and Cochin Administration and Application of Laws Act, 1125, provides:

"All references in any of the existing laws of Travancore to His Highness the Maharaja of Travancore or the Government or the Dewan or a Minister shall be construed as references to the Raj Pramukh or the Government of the United State or the Minister concerned of the United State, as the case may be."

The opening words of the Notification published in the Government Gazette (Extraordinary) dated the 25th January 1951 are:

"In exercise of the powers conferred by S.31 of the Travancore Tobacco Act 1 of 1087 as continued in force by the Travancore-Cochin Administration and Application of Laws Act VI of 1125 and in supersession of all previous Notifications and Rules on the subject the following rules are prescribed under sanction of His Highness the Raj Pramukh for regulating the import, export, sale, transport, possession, disposal of things confiscated and the grant of reward under the said Act and for generally carrying out the provisi