This is an application for the issue of a writ of certiorari to quash the order of the Collector of Malabar refusing to renew the licence in favour of the petitioner. The petitioner is a firm carrying on business in Tellicherry in North Malabar district under the style of K. Raman & Co. The firm was a holder of a Retail Yarn Dealer’s Licence No. 10/KTM, Wholesale Cloth Licence No. 26/ MBR and Retail Cloth Licence No. 221/KTM under the provisions of the Yarn Dealer’s Control Order, the Textile Control Order and the Madras Cloth (Dealers) Control Order, 1948. These three licences were renewed upto 31st March, 1950. The petitioner applied for further renewal of the licences but the Collector of Malabar refused to renew the licences on the sole ground that he had not produced the Income-tax and Excess Profits Tax Verification Certificates and that the firm was in arrears to the extent of Rs. 37,293-14-0.

Learned counsel for the petitioner contended that the order of the Collector was arbitrary and the reason given was not germane to the issue of a licence.

Learned Government Pleader relied upon the order, G.O. No. 867, Finance, dated 16th August, 1949. The relevant portion of the