The court held that the Excise Commissioner's refusal to renew the petitioner's license was unreasonable, arbitrary, and discriminatory, and that the Commissioner had failed to consider the various representations and correspondence made by the petitioner explaining the reasons for the delay.

1. - The petitioner before us was granted a licence for establishment of a bonded were house on 6-10-1987 by the Excise Commissioner, Rajasthan Udaipur. This licence permitted the petitioner to establish and a run a bonded Ware-house for the receipt and storage of Indian made foreign liquor under bond, whether bottled or in bulk or both of Indian manufacture transported or imported into Rajasthan from any place within the Indian Union as approved by the Excise Commissioner, for refuse, bottling, transport or export in bond or on payment of duty Within or outside the State. The petitioner was required to establish a bonded Ware-house and a bottling plant in the city of Jodhpur as per the terms and conditions mentioned in the said licence. The licence was granted in pursuance of the provisions of section 17(d) of the Rajasthan Excise Act, 1950 (Act No. 11 of 1950) here in after called 'the Act.' The licence, inter alia, stated that the bonded were house was to be established within one month of the grant of licence. This term of one month stood substituted by a term of six months, vide notification Ex.3.

2. The petitioner failed to establish a bonded Ware-house and a bottling plant within six months of the grant of licence. The case of the petitioner is that immediately after grant of licence, the petitioner made efforts to enter into collaboration agreements with various renewed distilleries. There was a delay in conversion of the petitioner's agricultural land at Boranada near Jodhpur City into industrial land because the district authorities were busy with famine relief operations. Later on, they became busy with Panchayat elections. When the petitioner failed in getting his agricultural land converted into an industrial land, he eventually, obtained a plot from RIICO at Boranada vide letter dated 14-7-1988 (Ex 10). In the mean while, in pursuance of letter Ex. 5 of the Excise Commissioner. Udaipur, the petitioner deposited a sum Rs. 25,000/ being renewal fees of the licence for the year 1988-89 vide challan Ex. 6 dated 27-2-1988. Immediately after acquiring the plot, the petitioner started construction of the bottling plant and he almost completed the construction of the plant by August, 1988. The petitioner kept the excise authorities informed about this progress from time to time as would be evident from letters Ex. 7/1, Ex. 7/2, Ex. 7/3, Ex. 7/4, and Ex 7/5. It was submitted that the excise authorities were aware of the progress made by the petitioner. The Inspector, Excise, Jodhpur, also informed the District Excise Officer, Jodhpur, of this progress vide letter Ex.P 6 dated 10-5-1988. By this letter, the Excise Inspector confirmed the truth of the progress report submitted by the petitioner to the District Excise Officer. The District Excise Officials were enquiring about the progress of the petitioner's work till as late as 16-6-1988 as would be evident from Ex. 8 and Ex 8A. The petitioner has averred that eventually he wrote to Commissioner of Excise, Rajasthan, Udaipur, to renew the licence. The petitioner is said to have enclosed with his letter Ex. 9A, the allotment letter Ex. 10. This request to the Excise Commissioner was repeated vide Ex. 12 dated 17-9-1988 wherein the petitioner mentioned that he had completed construction of the factory shed. It was intimated, inter alia, that water treatment plant and bottling line were lying ready with the manufactures are the collaborator was also ready to finalise the deal of supplying the spirit but for the renewal of the licence. It would be interesting here to mention that no renewal was granted during the year 1987-88. The period for application for renewal for the year 1988-89 was to expire on 28-2-1989 and, therefore, the petitioner submitted a new application to the Excise Commissioner, Udaipur, Ex. 15 dated 21-2-1989 requesting him to renew his licence for the period 4-1989 to 31-3-1990 The petitioner submitted demand draft of Rs 25,000/- as licence fee for